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Tips for Investing at Any Age

What to pay attention to at different times in your life.
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Three generations of women

Investing is not bound by age; you can start as early as you can and as late as you want. Of course, the sooner you start investing, the more time your money has to compound and grow. So in our opinion, the perfect time to start investing is now.

Where you start and what you pay attention to often changes with your age and goals. Here are a few ideas of what you might focus on at different ages and stages of life. 

Age 20-35 - Keep it Simple

Pay yourself first

When you’re young, perhaps in or newly out of college and exploring different careers, your primary goal should be to start saving money. While some debt like student loans are difficult to avoid, it is imperative to avoid or pay down certain debts like credit-card debt.

Keep accounts simple

Focus on opening a retirement account like IRA or Roth IRA, if you qualify, and start making regular contributions to it. Sign up for your company’s 401(k) and see if your employer will match your contributions.

Keep investing simple

Nervous about investing? Mutual funds can be a great first investment. Funds can give you diversified exposure to different areas of the market and the globe, usually for a low minimum investment. 

Age 35- 50 - A step ahead

Increase retirement contributions

Your retirement goal is still important, so try to bump up your retirement contributions every year, if you can, and keep investing your assets for growth.

Consider other goals

As you have more money to invest, you might open a taxable investment account. If you have kids, you could open educational accounts.

Plan for the future

If life gets more complicated and you feel stressed about managing it all, consider meeting with an advisor to talk through your finances and future plans.

Age 50-65 - Get your plans in place

Retirement is in sight

You’re closer to retirement, so you’ll want to get your plans together. Whether investing on your own or working with an advisor, think about how you’d like to live in retirement and what you need do to make that a reality. Work out how much risk you need to take, your risk tolerance, your overall allocation to stocks and bonds, and what kind of nest egg you will need in retirement.

Set up a trust and do some estate planning

If you are in good financial health, you will likely want to start thinking about trust accounts and legacy plans. There is comfort in knowing you have a game plan for the future.

Age 65 and up - Focus on stability

Pay attention to risk

Keep a close eye on risk in the years right before and after you stop working since a market downturn could really affect your financial stability. Risk management becomes crucial now.

Make your money last

Worried about having enough money? Consider when to take social security and determine how much you can withdraw from your retirement account without running out of money. Over time, you’ll likely want to focus on lower risk investments like bonds (unless you won’t need this money and you’re investing it primarily for your heirs).

Set up continuity plans

Who will manage your portfolio if you can’t? Many of our private money management clients hire us as their advisor because they want to make sure that their assets and their families are taken care of no matter what happens.

If you’d like to talk to a FundX advisor about becoming a client, call us at 1-800-323-1510.

Simplify Your Investing with the Upgrader Funds

The Upgrader Funds can help you simplify your investing at any age.

Aren’t sure which mutual funds to own now?

When you invest in the Upgrader Funds, you’ll own a portfolio of funds managed by our longtime advisors. The Upgrader Fund (FUNDX) owns funds with market-level risk, while the Aggressive Upgrader Fund (HOTFX) invests in sector and specialized funds that have above-average risk.

Not confident about choosing bond funds?

Let us do it for you. The Flexible Income Fund (INCMX) is a full portfolio of bond funds that’s built and managed by FundX advisors.

Looking for growth and stability?

Consider a balanced fund like the Conservative Upgrader Fund (RELAX). This fund has 60% in core stock funds and 40% in our Flexible Income approach, which seeks to buffer the volatility of stocks.

Diversification does not assure a profit or protect against loss in a declining market.

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About FundX

FundX Investment Group pioneered using noload mutual funds to manage client accounts in 1969. Today, the firm uses its evidence-based investment process to manage equity, sustainable and fixed income portfolios of funds for individuals, institutions and mutual funds.

 

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