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Financial goals at every stage of your life

How to take advantage of time and its relation to yield to achieve your financial goals

Financial goals at every stage of your life

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02.Aug.2021

You don't think the same at 20 as you do at 40, nor should you do the same with your money. Your lifetime savings and investment goals are dynamic and should evolve over time.

The general rule: the younger you are, the higher the yield (and the risk)

Time is your ally when managing your money: it dilutes risk and improves yield when investing.

  • When you are young, try to maximize the yield even if this means taking on a little more risk. Invest more in equities.
  • As the years go by, try to consolidate what you have earned by reducing the risk of your investments. Reduce variable income, increase fixed income investments.

Take advantage of the rule of 120

What is this rule? A formula created by John Bogle to decide what percentage to invest in equities and what percentage in fixed income.

How does it work? You subtract your age from 120 and that is the percentage to invest in equities (higher yield and risk).

Objectives and type of investment according to your age

0-18 years

Mom and dad are the decision-makers. What should they do?

  • Goals: long-term savings.
  • Objectives: save and invest for the future.
  • Strategy: long-term growth investments.
  • Products*: investment funds, stocks, portfolios of funds, PIAS.

* Child savings accounts are fine, but they do not offer great returns.

18-30 years

GoalsSave every month
Start investing
Create your emergency fund
Define your medium-term financial goals
ObjectivesCreate your savings plan
Create your investment plan for the short and long term
StrategyLong-term growth investments
ProductsInvestment funds, stocks, fund portfolios, PIAS, pension plans

30-50 years

GoalsIncrease income and savings
Define short, medium and long term goals (children, children’s education, retirement. etc.)
ObjectivesDiversify investments
Consolidate part of the earnings
StrategyStart reducing equity exposure
ProductsInvestment funds, stocks, portfolios, PIAS

50-67 years

GoalsIncrease income and savings
Redefine medium-term goals
ObjectivesMaintain investment by reviewing asset allocation
StrategyConsolidate the gains obtained
Reduce exposure to equities
ProductsInvestment funds, stocks, fund portfolios, PIAS, guaranteed products (from 60 years)

67-…

GoalsPlan the withdrawal of investments
ObjectivesStretch savings to the maximum
Have an adequate income for retirement
StrategyKeep the investment part of the portfolio
Conservative investment strategies
ProductsInvestment funds, annuities, fund portfolios, PIAS, guaranteed products

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