Investing at every age

Yesterday my husband turned thirty: a milestone I celebrated but at which he nearly cried. So naturally I’m writing about it! He has been worried about turning thirty since the day I met him more than seven years ago, and the day has finally come. The world did not end. Actually, nothing happened at all, except…

Recently, he’s found any excuse to leave a bar because it’s too loud or has too many people. He has regular back aches and pains, doesn’t know the name of anyone on the radio, found six (yes, he counted) grey hairs, and the days where he could drink whatever he wanted without a terrible hangover are long, long gone.

But one thing that doesn’t need to change much when you turn thirty is your investment portfolio. Chances are, if you had one in your twenties, it will be similar still and if you don’t have one then your thirties are the time to make your first investment.

How and where you invest has as much to do with your age as it does your attitude for risk.

‘To me – old age is always ten years older than I am.’
– John Burroughs, American essayist

Investing in your 30s (and 20s)

When you’re investing early you have a much longer time to profit from stock markets – another lifetime or two in fact – not to mention the added bonus of all those years of compounding interest. Since you can take a long term horizon and don’t need the money for the next 30-40 years if planning for retirement, you could just stick to an all-equity portfolio with 95-100% in the asset class.

Risk and balance play a big part in choosing a fund. We suggest finding a geographical balance that represents the level of risk you’re happy with: something that’s especially important when you’re starting out. A range of US, UK, Asian and European equities should give you a nice mix of regions to start.

Investing in things you know and understand is a great way to feel more connected with your investments and keep a keen interest. With household names like Coco-Cola and Alphabet (Google) in its top 10 holdings*, Lazard US Equity Concentrated is an option in the North American region. Likewise, Schroder Asian Alpha Plus has over 6%* in technology stocks with big names like Samsung, Alibaba Group Holding and Tencent Holdings.

Looking to stick closer to home? GAM Star Continental European Equity has holdings in Nestle and French luxury goods LVMH* – so even if you’re not splurging on a Louis Vuitton handbag, at least you can hold a fraction of the brand in your portfolio.

If the idea of creating your own balanced a portfolio is too much for you, you might consider looking towards multi-asset fund. Jupiter Merlin Balanced Portfolio is an option for those who aren’t completely comfortable holding only equities. With over 75%** in stocks, you’ll benefit from a high level of equities with the added peace of mind of an experienced team and little bit extra diversification.

Need a refresher in multi-asset funds? Use our two minute guide to the asset classes

Interested in learning how your portfolio will change as you hit other milestones?

*Fund factsheet at 28 February 2019
**FE Analytics at 29 March 2019
***Figures taken from FE Analytics, 11 April 2019

This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.