Investing Through Life's Stages

Like fine wine, your money needs to age well. Co-host of podcast Good Girls Talk About Money Deborah Tan-Pink shares tips on how to plan your portfolio when you're in your 20s, 30s and 40s.

- Deborah Tan-Pink

As we age, the demands of our skin, body, and health change; our money is no exception.

Now that I’m in my 40s, I am painfully aware that I have less time to build my nest egg than, say, a woman in her 20s. But what I lack in time, I try my best to make up for in cash. Ideally, the amount we should set aside for saving and investing should be proportional to our income. Earning more means being able to invest more, not just spend more.

Our risk appetite changes as we age and, also, as we reach certain milestones in life. Two women of the same age and income bracket can have vastly different risk appetites. Marriage, mortgage, and motherhood are just some of things that would determine how we invest.

It’s helpful to review your finances every year: How have your obligations changed? Are your financial or retirement goals different from last year’s? What does your investment portfolio look like?

According to the Her World What Women Want Survey, 56.2 per cent of the women surveyed started investing in their 20s, while 31.1 per cent started in their 30s. While 52 per cent of women invest monthly, the ones that don’t blame it on a lack of financial knowledge, closely followed by a lack of funds.

We speak to financial experts on how to break down our investing strategies, according to the age bracket you fall into. Remember, it’s never too early – nor too late – to start investing.

Investing in your 20s

In your 20s, you’re fresh out of school, and perhaps in your first job. It is also at this point in your life when you might be thinking, “Hey, it’s not that important to start investing now. I’m just barely making ends meet.”