Here we consider the seven stages of monitoring investments throughout life.

The seven ages of man is a speech from one of Shakespeare’s plays and catalogues the stages we go through in life, from baby to old age. It is an excellent comparison to investing and how investors need to ensure their investments keep pace with them as they move through life. However, this doesn’t just apply to saving for retirement, it applies to any investment goal and portfolios need to be monitored to make sure they are on track to achieve their objective.

Baby to young adult: Although financial commitments are negligible at this stage in life, it is a good idea to encourage children to save for themselves and to understand the basics of money from an early age.

Under 25: Retirement is a long way and a bulk of an individual’s income may be earmarked to fund their current lifestyle – buying property or cars for example – rather than saving for later years. However it is still a good idea to get started in investing and understanding what it is all about. Now also might be a good time to develop a high risk, aggressive portfolio as there is plenty of time to recover from any capital losses.

25 to 35: Although retirement may still seem a long time away, the earlier someone starts investing, the greater chance they have of building a significant nest egg for later years. At this stage in life people may be able to afford higher risk and more aggressive growth strategies as there is more time for investments to recover from losses or market volatility.

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