Being in your 30’s is a whole new ballgame. Your life is either on the verge of changing, or you are in the midst of change. In any case, your decisions demand a more sensible stance, your plans go through a modification stage, and even your Investment Management strategies are subjected to alterations. The investment portfolio that you plunged your investments in looks different in your 30’s than it does in your 20’s. Your priorities shift, and so do your investment strategies. Therefore, following is the list of investment management strategies that one must adopt upon entering his/her early 30's.
1. Embrace Stocks
It is essential at this age for an investor to keep their investment portfolio heavily leant towards equities and foreign shares, due to the superior growth potential that stocks offer.
2. Increase Your Emergency Fund
Even the best laid plans go sideways when we are least expecting them to, leaving us up a creek without a paddle. Therefore, having an emergency fund in place to get you through a rainy day (or twenty) and kicking your savings into high gear becomes a necessity once you reach your 30's.
3. Focus on Your Retirement Plans
Entering the 30’s requires an investor to give proper thought to his/her retirement plans. Increasing their savings by a hefty percentage and pouring them into a retirement fund, instead of solely depending on their company’s retirement plan is of crucial importance.
4. Invest in Real-estate
The time to buy a house for yourself and your family has finally arrived. Congratulations! Indeed, you must find a modest home and make a good-sized down-payment on it, because investing in your future by purchasing a house of your own is the best investment strategy you can adopt at this stage in your life.
5. Adjust your Insurance
Your assets may have grown overtime, and subsequently, so should the means of protecting them. Think about investing in insurance policies, ranging from home insurance, life insurance, and health insurance, etc.
6. Rebalance and Review
Instead of putting your investment management on auto-pilot, develop a habit of reviewing your retirement contributions, assessing your debts, routinely topping your emergency funds, analyzing your savings, and monitoring your investments.
Being in your thirties might present you with a financial situation that is at odds and ends, but observing the aforementioned Investment Management strategies would help you in making a huge difference in building your wealth in the long-run, while ensuring a secure future for your family and yourself.