Your Five Financial Stages and Investment Goals

Posted by Fitz Villafuerte under Investing on February 22, 2010

At what age should you start investing?

The answer is as early as possible.

Doing so not only maximizes your investment earnings, but more importantly, it brings you closer to the end of the finish line – financial freedom.

Furthermore, it’s important to realize that investing is a skill. Hone it and you get better at it with time.

And to guide you with your investing journey, here are the five financial stages and investment goals you should go through in your life. Five points which I learned from a BPI Investment Fund manager who taught me about life cycle investing. I hope you will find this information as helpful as I did.

Stage 1: Orientation – Eager Beginner
Ideally, they are the young urban professionals in their 20’s. The stage when your financial goals should be:

  • To save money and to make it a habit
  • To invest in knowledge and learn about investing to increase financial literacy

Stage 2: Exploration – Investment Apprentice
People in their late 20’s to mid 30’s. If you’re in this stage of your life, then your goals should be:

  • To gain real experience in various investment instruments – from low, medium to high risk investments
  • To develop the skill to choose the right type of investment that will best serve one’s financial goals

Stage 3: Accumulation – Wealth Builder
Mid to senior management employees in their late 30’s and 40’s. Investment goals should be:

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  • To optimize and maximize returns from savings and investments
  • To prioritize wealth accumulation and focus investments for one’s retirement goals

Stage 4: Preservation – Asset Protector
Senior executives and successful entrepreneurs in their 50’s. Your investing strategies should be:

  • To protect one’s accumulated wealth by investing on less risky instruments
  • To achieve enough passive income to be able to fully retire and be financially free

Stage 5: Disposition – Legacy Bestower
Retired and self-sufficient individuals who have been champions of investing and asset building. Your goals in life now are:

  • To ensure that your wealth and legacy is properly bestowed to the next generation
  • To serve as an inspiration for others so that they can also achieve the financial freedom that you currently enjoy

Think about your financial status and investment portfolio and see where you are right now in these five stages. Are you “on schedule”? Or late? Or perhaps ahead of your time?

However, remember that where you are right now isn’t as important as your movement towards advancing to the next stage. Keep the momentum and see you at the finish line.

Get more investing tips and strategies in the future by subscribing to Ready To Be Rich.

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Photo credit: toastforbrekkie and midnightglory


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One Response to “Your Five Financial Stages and Investment Goals”


  1. sagar patel says:

    u give a 5 step of a financial goals is very useful in our life..

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