Financial security and freedom is something everyone aims for, but the path to get there can be daunting. To reach the lofty goal of a comfortable retirement, beginning to invest early in your career will yield the best results. However, continuously analyzing your investment opportunities and financial ability during each stage of your life will determine what plan will work best for you.

Start Saving In Your 20’s

Most employers match 401k contributions, which is basically free money for retirement. If you have access to a benefit like this, begin contributing to your account as soon as possible. You can also consider opening a Roth IRA. This allows you to contribute money to a retirement fund that is not taxable when you take it out.

If you start investing early enough, you can save nearly $1 million by the time you’re 67 years old just by putting in $14 a day.

Use Your 30’s To Invest In Yourself

When you’re in your 30’s, you begin to have more money to invest, but still have a long road ahead of you before you retire. Because of this, use your 30s to aggressively invest in the stock funds and some bonds. Investing in bonds allows for more stability, but the return isn’t nearly as great as it is with stocks investments.

In addition, by your 30’s, it is time to start investing in real estate if you haven’t already. If you’re starting to settle down, you should be buying instead of renting. Your 30’s can also be a great time to invest in higher degrees if it helps you reach a higher salary. A higher salary means you can invest more, which means greater returns when it’s time for retirement.

ocus on Asset Allocation In Your 40’s

When you reach your 40’s, it’s time to start focusing on how you are allocating your money into different investments.

That means that now is the time to lean toward bonds and fixed investments than ever before. A conservative allocation of stocks to bonds is 60% and 40%. If you are open to more risk, go with a 70% to 80% ratio.

Refine Your Investments In Your 50’s

As you get closer to your retirement age, it’s important to take a deep look at your financial situation and where it might stand at the time of retirement. Based on what you project, your investments in your 50’s will vary.

If you feel like you are on the right path to a comfortable retirement, keep your plan going as it is and then dial back on risky investments like stocks. You can increase your allocation to bond funds and look into real estate investment trusts (REITs) with higher dividend payments.

Tips That Apply To Any Stage Of Life

Each person’s financial and employment situation will determine the best investment plan. However, there are a few things everyone should consider no matter where they are in life.

Every time you get a raise, use that as an opportunity to increase the amount you are contributing to your investments or savings account each month.

In addition, almost everyone at any age could benefit from utilizing a financial advisor to learn how best to manage their funds.