Age Appropriate … Investments?

Childhood Pass Times
Childhood Pass Times

Almost all of us … in our childhood have been chided by parents for not adhering to age-appropriate behavior. Reminiscence validates that whether its childhood or adulthood … we enjoy a wee bit of immature behavior. A little carefree conduct or un-deliberated action feels nice.

As grown-ups… childhood memories bring a smile to our face. Feeling young is always refreshing. No wonder Gaming Zones and Rejuvenating yoga is gaining immense popularity.

Childhood Friends
Childhood Friends

When we talk of looking and feeling young …anti-wrinkle creams, green tea and childhood friends work like magic. Age is just a number.

But when we talk about investments … age is of vital importance. Our age decides our earning period, our risk appetite, the asset classes and time frame for our investments.

As we gain experience in the journey of life … we become more conservative in our approach . Medicines , exercise and conscious eating becomes a way of life. But what about our investments ?

There is a need to re-look into our investment portfolio and synchronize it with our age.

Debt and Equity Component in Investments
Debt and Equity Component in Investments

Investment is, but the interplay of the debt and equity. The debt component promises stable but moderately low return as compared to Equities. However, the equities are well known for their more aggressive returns and moderate consistency; with the long term perspective.

So it is important to start young … to get better and consistent returns. As we age … we move to more secured means … capital preservation becomes more important than capital appreciation. Fixed income investments gain prominence.

Another very important factor is inflation. In the tug of war between interest and inflation, the real value of capital may depreciate. Hence there is an urgency to strike a balance between the interest-bearing fixed income investments and equities.

With an increase in life expectancy and an ever-increasing cost of living … the need to preserve, invest and appreciate our savings cannot be overemphasized

The Inner Child
The Inner Child

So let your investments be age appropriate … and let your inner child be ageless.

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