Sat Jul 27 2024, by Tyler Gardner

Investment Strategies for Your 20s, 40s, and 60s

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

Investing in Your 20s

In my 20s, I would take a bold approach to investing, leveraging my long time horizon, which gives me the opportunity to make mistakes and learn. Here’s how I would allocate $100,000:

• $40,000 in an aggressive fund like Invesco's QQQM, which tracks a hundred non-financial companies in the NASDAQ composite.
• $40,000 in Vanguard's VUG, focused on high-risk, high-reward tech companies.
• $20,000 in a small-cap fund like Vanguard's VBK to capitalize on the current small cap rally.

Note: All rallies will eventually come to an end.

Investing in Your 40s

When I reach my 40s, my strategy becomes more conservative. I would invest all $100,000 in a no-cost index fund like Fidelity's FNILX. While this may not seem exciting, it is a smart investing choice.

The S&P 500 historically returns around 10%, and with over 20 years until retirement, I’m looking for a blend of growth and stability.

Investing in Your 60s

As I transition into my 60s, I’d adjust my strategy to prioritize income and lower risk:

• $40,000 in SPHD, which tracks stocks with relatively high dividends and has a payout of around 4.3% with low volatility.
• $40,000 in iShares HDV, which has a slightly lower risk, offering a healthy dividend payout of approximately 3.39%.
• $20,000 in a money market fund like Vanguard's VMFXX for cash inflow and quick access during market corrections.

This approach ensures I have liquidity and the option to buy more of my previous investments during downturns.

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