6/28/2021 - economy-and-finance

Investing according to your age or financial phase

By roman gutierrez

Investing according to your age or financial phase

The choice of a portfolio and financial assets should take into account the risks we can take, according to the different financial steps:

1- Early, single or newly formed youth internship

Young people need maximum growth in their small capital, have a lot of time to deceive and hit, rely on labor or professional income, and can accept greater risks in their investments in exchange for greater return potential, a portfolio at this stage of life must take into account these instruments:

  • 50% Technology and growth actions of the USA and China
  • 30 % According to own business, startup or entrepreneurship
  • 10% Cryptoactive
  • 10% Start a Private Jubilee Plan early.

2- Home of the family, children arrive, stable couple and new responsibilities

At this stage of life new responsibilities begin, young people, but family expenses increase with the arrival of children, a couple or marriage.

The risk profile should start to be balanced, also thinking about the financial protection of heritage and planning, during these years we can consider investing:

  • 30% Income instruments fixed in hard currency
  • 30% Global Variable Income ETFs
  • 25% U.S. leading global brands.
  • 5% Cryptomone
  • 10% Inverted in a Universal Life Insurance

3 Contemporary adult in its maximum financial capacity

Many personal finance authors raise that, between the ages of 45 and 55, many people reach their financial fullness, it is a life stage where the experience and accumulation of assets combine and allow them to enhance income and investments, also some must finance higher child studies, and in other cases begin to become independent and cease to be an economic burden.

Paradoxically it is the phase of the preschool for the retired phase, from this stage it should be better diversified and start to reduce the volatility of investments:

  • 40% in the Mutual Funds of Fija Income
  • 20% US Blue Chips Actions.
  • 15% Global Variable Income ETFs
  • 10% REITs
  • 10% Gold
  • 5% Special contributions to the Private Jubilee and Life Insurance Fund

4- Third Age, Jubilee and Retreat

Finally we reach the third age, a life stage where people inevitably reduce their labor competitiveness and incomes begin to decline. The key to success is what was built in the productive stage, here we must prioritize the preservation of capital and the generation of income to replace income:

  • 40% Free Bonos Funds Investment
  • 20% Gold
  • 20% US shares paying high dividends
  • 10% REITs
  • 10% Cash/Liquidity
These are ideas of the financial and investment instruments that could conform the portfolios in the steps of the people, I hope they serve as guidance and strategy of “wealth management”, under the understanding that each personal financial reality can be different.

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roman gutierrez

roman gutierrez

I help people organize their personal finances and investments. I am passionate about entrepreneurship and stock markets. I have 26 years of experience in the Professional Investment Administration. I am a Venezuelan consultant based in Buenos Aires.

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