Invest According To Your Age

https://www.facebook.com/ANC.OnTheMoney/photos/a.223562134446114.57105.160687700733558/576047875864203/?type=1&theatre

 

Today, I came across the post above on my Facebook wall. And when I read the Stocks Update from the Truly Rich Club on my email, it was saying the same thing -- that we should invest according to our age.

 

 

Since I do not know how much of my friends' money are invested in stocks, I will use myself as an example for this.

 

 

 

100 - 32 (my age) = 68% of my money SHOULD BE in stocks

 

I remember my cousin when he said that I was such a risk-taker when he knew that I have (almost) all of my money in stocks. I have a term insurance. I have health insurance. And I have set aside my emergency fund which is three times my salary. And the rest? It is invested in the stock market.

 

 

While you are still young, our mentor at the Truly Rich Club is teaching us to invest more in the stock market -- so that you increase the size of your Retirement Fund. But the rule is that you only invest according to the amount where you can have a good night's sleep.

 

 

I think I am part of the minority because I can sleep soundly even if I have invested more that 68% of my savings in the stock market. I can sleep soundly even during those times when I see all RED in my portfolio, because I know that it is all temporary.

 

 

But when someone hits 60 or 70 years old, that is the time he may need to set aside 20 percent to 50 percent in fixed assets, or even time deposit. This is because when a person reaches retirement age and no longer receives salary, he may need cash at anytime for bigger emergencies.

 

 

Invest according to your age.

 

 

Happy investing!