Life Stages - Money Stages

Each stage of life brings its own challenges. The same is true when it comes to money management and investing. The investment approach you need in your 20's is different from what you need in your 40's, which in turn is quite different from what you need in your 60's and beyond.

 

ILLIQUID STAGE

As you begin your career, most of your assets will be illiquid -- meaning they can't be readily turned into cash. Illiquid assets include your home, car, and personal belongings as well as the intellectual capital that will drive your career. You won't be able to save much -- but you do need to begin saving something.

INVESTING STAGE

As you approach mid-life, your career begins taking off and you enter your peak earning years. This is the time when you need to focus on growing your asset base. Max out on your 401(k), 403(b) and IRA contributions and build a diversified portfolio that balances risk and reward.

INCOME STAGE
These are the payoff years. You've worked hard accumulating assets, and you now need those assets to work hard for you. Capital preservation and income generation are the key elements of your investment approach -- ensuring that you do not run out of money no matter how long you live.

 

At I-Pension, we can provide assistance in developing a plan that helps you enjoy each of your life stages and achieve your financial goals in each of your money stages.