Investments: To Bulk Up or Slim Down?

Investing money is understandably scary. It’s like joining a new gym and worrying whether all the money spent on startup fees and registration will really pay off. Here is a guide to investments based on where you are in your journey towards financial fitness:

If you're in your 20s …
Some say to make your riskiest investments at this age because you have time to recover. Half of that is true, you wouldn’t jump off a bridge because you are young and in shape would you? Invest in solid stocks because even with a lower return, you still have time to reach your financial goals. As you invest, don't ignore your debt. Paying off a credit card that charges 25% is the rough equivalent of earning 25% on your investments.

If you're in your 30s …

Prioritize retirement savings - Don’t let fear keep you from contributing to your retirement accounts. Even baby steps can run a marathon.

Protect yourself from unemployment - Keep enough cash to hold you over for six months.

Try playing with 401(k) contributions - If the market has you nervous, try moving 30% of it into the safer money market options.

If you're in your 40s …
These are your prime earning years. That means you should be stuffing as much as possible in your retirement savings plan, even if it means cutting back on spending. When it comes to stocks, stay diversified. A diversified portfolio has a good mix of stocks and bonds, and also contains some real estate and precious metals. Just like a diversified diet exposes you to all different kinds of nutrients, this will keep you exposed to high earning areas.
How has the market been for you lately? Tell us on the investment board in the forums.

The mint makes it first, it’s up to you to make it last!
-Jainie-