Summarize and humanize this content to 2000 words in 6 paragraphs in English Investment goals rarely remain stagnant. Just as other priorities and aspirations evolve as we age, our investment goals change, too. Your needs and wants in your twenties will look different from those in your fifties, so your investment goals must align with the current decade of your life. Read More: How To Get a 10% Return on Investment (ROI): 10 Proven Ways Find Out: These 10 Used Cars Will Last Longer Than an Average New Vehicle Of course, everyone’s life moves at different rates, so don’t fret too much if your investment goals don’t align with ours. The important thing is that your investment plans grow with you. Let’s look at our list of the No. 1 investment goals for each decade of your life. For many people, your twenties mark the end of traditional schooling and the beginning of your career. Since this decade is likely the start of earning significant money, it’s time to begin your investment journey. You have a few options, including opening a high-yield savings account, a brokerage account, contributing to a retirement account, or combining all three. “During your 20s is the optimal time to begin investing,” said Richard McWhorter, private wealth advisor and managing partner at SRM Private Wealth. “You’ll want to focus on high-growth investments. At this stage, you will have ample time to weather the ups and downs of business cycles, allowing you to take on higher risk.” See More: 15 Investments Warren Buffett Regrets Now that you’ve been working for almost a decade, you can start saving for a large purchase, like your first home. Real estate is a significant investment, and you’ll need about 20% of the property’s purchase price saved for a down payment. Spend the early part of the decade budgeting and designing a savings plan so that you have the money ready when you’re ready to invest. If you have kids, consider contributing to a 529 plan, a tax-advantaged education savings account with investments growing tax-free and tax-free distributions for qualified education expenses. If you don’t have kids, consider contributing to a health savings account (HSA) or traditional IRA. “By the time you reach your 30s, you should already have a good start on your retirement fund,” said Uli Ebensperger, co-founder and CEO of Ziggma.com. “This is also when many people purchase their first homes and start a family. With many different priorities, saving and investing can become a little more difficult, but it’s important to stick with your plan to make sure you’re not playing catch-up in future decades.” Life will look different in your forties than in your twenties, and your tax bracket probably looks different, too. You’re likely making more money in your forties, and how much you’re paying in taxes reflects this. By contributing to tax-advantaged accounts, you can lower your taxable income and pay less tax to the government. Hopefully, you’ve been contributing to your retirement savings over the past couple of decades, so you can spend your fifties ramping up your contributions and preparing for retirement. When you’re 50, you qualify to make catch-up contributions to retirement accounts like 401(k)s and IRAs. These catch-up contributions are additional amounts you can make on top of your regular contributions to save even more for retirement. “Your 50s is the prime time to refocus on retirement since oftentimes expenses are decreasing-especially if mortgages get paid down and college savings plans have been followed,” said McWhorter. “Reducing risk usually makes more sense as the remaining time to weather business cycles is declining. Historically, this is the timeframe for [the] highest income, so the more that can be put away, the better. Estate planning also becomes a necessity at this point.” The time for making risky investments has passed by the time you reach your sixties and seventies. You want to spend these decades making more conservative investments. Consider annuities, CDs or Treasury bills during these years. “This is where investors need to start recognizing they are moving from accumulation, to preservation, and even distribution,” said Brad Clark, founder and CEO of Solomon Financial. “If they have done this properly, they should have their retirement nest egg saved up at this point. Now is the time to limit risks and work towards lower-risk growth.” Clark continued, “Many investors have negative opinions of annuities, but there are some really nice products available today that were not available just a few years ago. These can be great tools to help reduce risk and diversify a portfolio.” No matter which decade in life you are in, ensure you are reflecting on your investment goals so they align with your evolving priorities. More From GOBankingRates This article originally appeared on GOBankingRates.com: No. 1 Investment Goal for Every Decade of Your Life
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