Align Your Investments: Financial Planning for Every Life Stage

• Investment decisions should align with age, life stage, goals, income stability, responsibilities, and risk capacity, not just returns.
• Risk appetite is determined by the ability (income stability) and willingness (reaction to market volatility) to take risks.
• Younger investors (late 20s-early 30s) with long horizons can take higher equity exposure, focusing on discipline and expense management.
• Mid-career investors (late 30s-40s) face high financial demands; portfolios need to balance growth with stability, and insurance becomes critical.
• Pre-retirement investors (late 40s-50s) should balance long-term retirement goals with medium-term needs, gradually reducing equity exposure as retirement nears.

Why It Matters: Align investments with your life stage, goals, and risk capacity for effective financial planning.