1. How your investment needs and strategies will change over time
Investing
Stages of Investing
How your investment needs and strategies will change over time

2. Stage 1: Put and Take Account
Emergency fund
Pay for short-term needs
Have enough left over for unexpected expenses such as…..
3-6 months net pay in an interest bearing account

3. Stage 2: Beginning Investing
Goal is to earn money with money
“Excess” savings beyond what is needed for daily expenses and emergencies
Early investing should be conservative, low risk
Begin in your late 20’s and early 30’s

4. Stage 3: Systematic Investing
Investing on a regular and planned basis
Increasing amounts as income grows
Investing for a financially secure future
Begins in your late 30’s and 40’s when earning potential is the highest

5. Stage 4: Strategic Investing
Careful management of investment alternative to maximize growth of your portfolio (collection of investments)
Diversification spreads risk across portfolio by having a mix of investments types

6. Stage 5: Speculative Investing
Excess money to take larger risks
Maximize return in the short-term
The greater the risk, the greater potential return (or loss)
Be prepared to lose entire investment
Chances of “hitting it big” are slim