Your guide to investing at every stage of life 🕰️

Let’s face it, investing can be confusing at the best of times! 

Plus, as you move through life, each decade brings new goals and priorities to juggle.

But what if you had a decade-by-decade guide to investing and strengthening your finances?

Well, that’s what we’ve tried to come up with today.

Just a note that the following information is more catered to the “average person with medium risk tolerance” and it’s general in nature.

You can of course adjust these to your own circumstances and preferences.

For example, I have a high risk tolerance, so I will probably take more risk than this.

Truth is, everyone’s circumstances will be different, and there is no one-size-fits-all approach…

But today’s newsletter should give you an idea about the types of things to think about when it comes to your personal finances in each decade of your life.

Alright, here it goes:

Please note that nothing in this newsletter should be taken as financial advice, and these are not recommendations. This is for educational and entertainment purposes only. Always do your own research and apply your own judgement before making any financial decision, or contact a financial advisor. Remember that investments can rise and fall, and you can lose money when investing.

1. In your 20s

• Goals: Build financial habits, invest early

  
  

• Preferred Accounts: Workplace Pension (contribute at least to employer match), Lifetime ISA (LISA) for home-buying, Stocks & Shares ISA for tax-free investing.

  
  

• Investments: Focus on shares (90-100% of portfolio) via global index funds.

  
  

• Other: Build an emergency fund (3 months' ESSENTIAL costs, not salary) and stay away from/clear high-interest debt.

2. In your 30s

• Goals: Grow wealth, plan for big milestones

  
  

• Preferred Accounts: Continue with the accounts from your 20s (you could also start a Junior ISA or a Junior pension if you have kids).

  
  

• Investments: Balance growth with some stability (e.g. 80-90% shares, 10-20% bonds).

  
  

• Other: Consider life insurance/income protection, especially if you have dependants. Consider creating a will. Avoid overextending on a mortgage.

3. In your 40s

• Goals: Consolidate wealth, maximise retirement savings

  
  

• Preferred Accounts: Max your employer's workplace pension match and consider a SIPP for additional tax relief. Continue using ISAs for flexibility.

  
  

• Investments: Moderate risk (e.g. 70-80% shares, 20-30% bonds).

  
  

• Other: Consider overpaying your mortgage and review your state pension entitlement.

4. In your 50s

• Goals: Prepare for retirement, reduce investment risk.

  
  

• Preferred Accounts: Contribute as much as you can to your pension and ISAs for tax efficient retirement savings.

  
  

• Investments: Shift towards 60-70% shares, 30-40% bonds to balance growth and stability.

  
  

• Other: Think about a retirement budget and ensure your will and estate plans are up to date.

5. In your 60s

• Goals: Preserve wealth.

  
  

• Preferred Accounts: Use pensions and ISAs for withdrawals. You could use the 4% rule (or 3% rule to be more conservative) for this. Claim the state pension or defer for higher payments.

  
  

• Investments: Focus on lower risk: 50-70% bonds, 30-50% shares for inflation protection.

  
  

• Other: Plan withdrawals carefully to avoid running out of funds and explore inheritance tax planning.

Your journey to financial freedom starts in 2025!

Over 1,500+ students have taken the 6-week journey from Beginner to Confident Investor.

If you want to invest with confidence in 2025, the next cohort of The Stocks and Savings Investing Course will start on the 3rd of February.

Signups open the week before and places are limited.

If you don’t want to miss out, tap the link below to join the waitlist 🤩

That’s all for this week!

I really hope you found this week’s newsletter helpful!

Let me know if you’d like me to talk more in depth about any of today’s topics in a future newsletter by replying to this email.

Until next time!

- Andreea & Jamie