The key mantra and two pillars to benefit from investing in different asset classes is to ‘Balance’ & ‘Proportion’. Your investments should be based on individual risk profile and age combined.
An image portrays more than a words, which above image classifies. A balanced mind and proportional diversification with early planning. The ‘Balance’ and ‘Proportion’ is the key mantra to successful and happy investing.
As it’s always quoted, “early bird gets the fish”. Thus, Investing is like more early you invest the more you will be giving yourself time time to compound your wealth. Therefore, investing is like nurturing a plan or a kid in a early stage helping it to grow big and successful.
The allocation of money in Equities at the early age of 25-30 can compound your money more. Also the risk bearing ability of an early age investor will be more while compared to aged investors.
The bonds and real estate investments usually can be made at the age above 35 or 40 as the risk taking ability of an investor reduces. Therefore, investors seek stable or less risk returns in their old ages.