Skip to Main Content

How your life stage shapes investing style

Jean Chatzky | Jean Chatzky
Bankrate Logo

Why you can trust Bankrate

While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .

Age matters a lot when it comes to investing.

For example, a couple with a newborn is going to have different requirements from a person nearing retirement.

Still, equally important as age is the life stage you are in. For instance, you may be in your late 30s or early 40s when you are welcoming a new addition to the family, or you may be close to 70 before you even start thinking about retiring.

“Your age helps dictate how you invest, but at the end of the day, it all depends on your time horizon,” says Brian David Neal, wealth partner at Hefty Wealth Partners in Auburn, Indiana. “A 20-year-old has a 50- or 60-year time horizon, which makes a big difference in how aggressive to get.”

Whether you just found your first job or you are ready to trade the tie for a set of golf clubs, there are investment strategies you need to consider. With that in mind, here’s a look at five life stages, and how experts say you should be investing during those periods.