INVESTING AT EVERY STAGE OF LIFE

Use our guide to make the right portfolio decisions, no matter your age.

- NELLIE S. HUANG

LIFE rarely goes as planned, but moving forward with no idea of where you want to end up is never the way to go. As Benjamin Franklin once said, “If you fail to plan, you’re planning to fail.” That’s especially true when it comes to saving and investing. Wealth isn’t typically built overnight. It takes a series of deliberate moves over time. With that in mind, we’ve crafted a game plan for how best to save and invest at every stage of life.

But first, know that there are several good-practice tenets that apply to all stages. Among them:

Take advantage of free money. No matter what stage of life you’re in, if you have access to a 401(k) or other employer-sponsored retirement- savings plan, aim to contribute at least enough money to earn the full company match—most employers offer one. Many employers contribute to a health savings account, too, if you’re eligible for one.

Automate your savings. There will always be a rationale to put off saving. In your twenties, it’s that you have decades to go before retiring. In your middle years, it’s the financial demands of a house and family. Later, it may be that bucket-list trip you’ve always dreamed of. “People have limited willpower and discipline. Make a one-time good decision and automate your savings,” says SoFi’s Brian Walsh, a certified financial planner. Just as your 401(k) contributions are deducted automatically from your paycheck, you can set up recurring transfers from your bank account to an IRA, a taxable brokerage account or a 529 collegesavings plan.