Sun Jun 23 2024, by Tyler Gardner

Investment Strategies for Different Life Stages

If I were to invest $100,000 at different points in my life, here is exactly how I would do it. And this is not advice. It's quite literally what I would do. It is not necessarily what you should do.

I'm Tyler, a former financial advisor and portfolio manager, and now I make financial content for free so that you don't have to pay for it.

1. Investing in Your 20s and 30s

If I were in my 20s or 30s, I would take on a ton of risk. I would invest $40,000 in a fund like QQQ, representing 100 of the largest non-financial stocks in the NASDAQ, with a fee of 0.2%.

I would invest another $40,000 in Vanguard's VUG. This is Vanguard's growth ETF, which attracts mostly U.S. growth companies, and it has a very low fee of 0.04%.

Finally, I would invest $20,000 in a fund like IWF that attracts U.S. companies expected to grow more than others, with a reasonable fee of 0.19%.

All of these funds are highly volatile, making this strategy best for those with a long time horizon and high risk tolerance.

2. Investing in Your 40s and 50s

If I were investing in my 40s or 50s, I'd put all $100,000 into a low-cost index fund that attracts the S&P 500, such as Vanguard's VOO or Fidelity's FXAIX.

In my 40s or 50s, I still have a relatively long time horizon and want to see decent returns that will sustain me through retirement.

3. Investing in Your Late 50s, 60s, and 70s

If I were in my late 50s, 60s, or 70s, I'd still invest 100% in stocks. As a highly risk-tolerant individual, I prefer not to invest heavily in bonds but would start to take some risk off the table.

I would invest $40,000 in Invesco's SPHD, which tracks companies with relatively high dividends, currently yielding 4.31% annually, and has lower volatility.

I would invest another $40,000 in iShares HDV; it has a slightly lower risk profile, but still offers a healthy annual dividend payout of 3.39%. Its top holdings include Energy and Big Pharma.

Lastly, I would invest $20,000 in Vanguard's VNQ, a real estate income ETF yielding 4.06% annually, tracking 158 real estate companies that distribute their profits.

If any of this is helpful, like and follow, and I'll keep trying to get you one step closer to where you need to be.