Your Five Financial Stages and Investment Goals

Updated: February 23, 2020

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, which is achieving financial freedom.

Furthermore, it’s important to realize that investing is a skill. Thus, you need to hone it so that you can get better at it through time.

To guide you with your investing journey, here are the five financial life stages and the corresponding investment goals you should have for each stage.

I learned these from a BPI Investment Fund manager who taught me about life cycle investing. So, I hope you’ll 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:

  • 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 status and investment portfolio and see where you are right now in these five financial life 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 moving towards advancing to the next stage. Keep the momentum, go forward, and see you at the finish line.

Enter your email address for your free subscription to Ready To Be Rich:


  1. Very accurate for most people on their investing journey. I believe that some ambitious folks may bypass a step or two when they invest in themselves and a great business idea. When/if cash is rolling in, you then have the option to accelerate the learning about other investments either with a mentor, lots of time to read great books or other means to get you off to a rapid start.

Leave a Reply

Your email address will not be published. Required fields are marked *