Types of investment according to your age


Types of investment according to your age

Currently there are many investment options, between new financial instruments such as digital currencies, and traditional ones such as currencies in stocks and bonds, so it is natural to ask when, how and in what to invest.

Although it is always the best time to grow your capital by investing in Blue World City, there are times in life where different investments can be considered according to the profile and the objectives determined for each age.

In this post we will mention some of the best investment options according to the age of each investor.

Main types of investment 

Before talking about the types of investment that exist, we will start by defining what an investment is. It is considered an investment when you pay for a good or financial asset, which will provide a profit in the future.

In short, an investment occurs when you put your money to work to generate profits. According to your investor profile and the types of assets you have, the investments that are convenient to make will be.

Therefore, one way to classify the types of investments that a person can make is:

  • Financial investments: These are those whose goal is to obtain financial assets, they are not physical products and their value comes from a contract or agreement and not from their use, an investment fund for example.
  • Physical or economic investments: These are those that are acquired through tangible assets, such as residential or investment land, a house, student apartments and offices to rent to professionals or companies. Its value comes from the returns generated by its use or from its subsequent sale, once its cost has increased. Some examples are the Certificates of the Treasury of the Federation (CETES) and cryptocurrencies, among others.


Among the main investments from a financial point of view are:

1. Fixed income investments

Fixed income investments are common among people who want to start investing but do not have extensive knowledge of the subject.

This type of investment is popular because the risk is minimal, although its main disadvantage is that the profit margin is also low.

Financial assets in fixed income are issued by both public and private financial institutions. They are called fixed income because the investor agrees to deposit a fixed amount of money for a set period of time in exchange for a return.

An additional benefit is that if the investor needs to withdraw his money early, he can resort to selling his title in the secondary market.

According to the validity period of these assets in the financial market, they can be classified as:

  • Money Market: These are short-term securities, usually no longer than 18 months.
  • Capital markets: they are medium and long-term securities, which can range from 18 months to 30 years.

2. Equity investments

Unlike fixed-income assets, in variable income assets the amount of profit that will be obtained in the operation is not known.

These types of investments usually have a higher risk factor, since, as well as excellent returns, it is also possible that the gains are zero or in the worst case, money is lost.

3. Investment in the stock market

This type of investment is popular with beginning investors, as well as being easily accessible from bank brokers.

This private organization offers the possibility of buying and selling company shares, where it is not necessary to be the owner to be able to invest.

4. Investing in currencies 

Investments in currencies are usually made in the International Foreign Exchange Market, also known as the Forex Market (Foreign Exchange Market).

This consists of buying and selling two currencies simultaneously, that is, the currency that is expected to increase in value is bought and the one that is expected to decrease is sold. For this to be carried out successfully, it is necessary to be aware of market movements.

5. Investment in raw materials

As its name implies, it is about making investments in raw materials, the list of which is very extensive and is considered for advanced investors. Among the main ones we can mention:

  • Energy (oil)
  • Industrial metals
  • Precious metals
  • Farm products
  • Perishables

6. Investing in real estate

As we mentioned in several of the articles on this blog, real estate investments are one of the safest you can do, in addition to generating profits and increasing your capital, they have extra benefits that make them ideal to invest at any age.

As is known, investments in real estate are safe because real estate is one of the few assets that increases in value over time, especially if the property is located in an area of ​​high capital gain.

In addition to this, you can earn extra income with your property after buying it, for example, we have prepared an article with 7 business ideas to make money with a land that will be of interest to you.

The return on investment of a real estate investment can be calculated in advance, guaranteeing a safe operation. Also, buying an investment lot is one of the best options for retirement.

A real estate property not only gives you profits, it is also the ideal opportunity to start building your wealth, regardless of whether you are still young or are close to retirement.

Simple Lease Agreement: 10 Precautions Before Signing

What type of investment to choose according to age?

The general image that the investor has is that of an entrepreneur with several businesses and a lot of experience, however, just as there are several types of investments there are also different types of investors and these can vary depending on factors such as age, capital, investment objectives, among others.

Now that you know the main types of investment, we have grouped them into 4 ranges according to age and profiles, as well as some investment advice to make better decisions and identify the best investment, be it financial or physical.

  • Investments between the ages of 25 and 35
  • Investments between the ages of 35 and 45
  • Investments between 45 and 55 years old
  • Investments between 55 and over

Investments between the ages of 25 and 35

Between 25 and 35 years is considered the best stage to start investing, the younger you are, the less financial commitments have been acquired. Therefore, it is time to create or increase capital.

In the case of financial investments, young people are the ideal clients of variable income assets, where the profits are delivered as dividends or through the sale of said assets, however, if no profits or the price of the assets are generated decreases, there is still economic independence.

Some examples of variable income financial investments are: shares, such as those of companies listed on the stock market or mutual funds, where investors share a common equity made up of securities that may vary according to the market.

In the case of physical or economic investments, it is the perfect age to invest in investment land, since it is not urgent that the returns are reflected and yes, it is the stage of cementing the heritage for the future.

This stage is considered ideal for long-term investments.

Investments between the ages of 35 and 45

Those who have started a family or a business in the previous stage, begin to approach investments in a much more conservative tone than younger ones since the new economic responsibilities require more cash flow than before.

In this period of life, although income increases, expenses have also increased, so it is advisable to diversify investments.

It is advisable to balance the capital employed between those of fixed income assets, such as a property that can be leased to third parties, and a variable such as some participation in the shares of a newly created company or cryptocurrencies.

The differences between one and the other are: that fixed income refers to assets that produce a fixed return – usually in the long term – without this increasing or decreasing despite the passage of time, meanwhile the variable income corresponds to Assets that can quickly grow in value but just as quickly can lose it, so they may not be very stable.

At this stage it is important – if you do not already have one – to create a retirement savings plan in which you can deposit a part of the income earned from your investments.

Investments between 45 and 55 years old

The priorities have changed in the period of life, the children are already growing, the expenses have increased, and the best thing is that most of the investments are directed towards fixed-income assets, whose returns are preparing the retirement stage.

It is not necessary to stop investing in equity assets, but you do need to do so by planning how much you can risk, in case you do not have other investments to amortize a possible fall in currencies.

Acquiring medical insurance or investment insurance for retirement at this stage is an excellent idea, to prevent any unforeseen event that could put the capital formed at risk.

For some people in this stage, the purchase of real estate is a way to ensure an income when they are older, since they have savings that when invested in said acquisition do not completely decapitalize them.

Unlike other types of land, in commercial land you can earn money without investing too much, so in the following years this will represent extra income for retirement.

Investments between 55 years and over  

This is a stage to enjoy the returns generated from investments made in earlier stages of life, however, if it has not been invested before, this is the ideal time to take advantage of the capital acquired over the years.

The physical investments such as commercial land have many benefits because they become fixed income assets ideal for this time, obtaining a permanent income derived from its use or rent.

If you still want to invest part of your capital in equity investments, it is best to opt for historically safe investments in currencies, which, although they have a lower return than others with higher risk, remain stable in the long term.

Precious metals such as gold have demonstrated their stability, especially in times of economic crisis, when world banks draw on their reserves, however, if this type of instrument is not well known, an advisor will have to be paid to carry out the investment management, which would raise their cost.

Rule of 120 to know how much to invest

The general recommendation of the experts is that the younger you are, the greater the percentage of income that can be invested in equities, and the older you are, the greater the percentage allocated to fixed income.

This recommendation is also known as the rule of 120, with the aim of obtaining a calculation of the risk that is run at each age with savings.

Rule 120 mentions that in this amount the capital —or savings— is subtracted for the completed years, and the result is the percentage that can be invested in variable income financial assets, which will decrease as age increases.

Investing in real estate is a financial success at any stage of life

After reading the investment recommendations according to your age, you will have noticed that they all have in common the investment of goods in the real estate sector, due to its stability and protection against inflation.

To get the best return on your investment – even without being an expert – you should take advantage of the opportunity to acquire properties in privileged locations when the opportunity arises, especially if they are for pre-sale, as they are cheaper and there is a higher profit margin.

The Mexican southeast, due to its investment potential, is an excellent option. It is a destination that in recent years has positioned itself among the favorites for the establishment of large companies that bring with them a proliferation of businesses and urban development around them.

At BMF inversions we help you find the ideal investment project for you, in the best cities of the Mexican southeast such   as Cancun, Mérida and Playa del Carmen, with great profitability, perfect for your profile and needs.

Lahore Smart City-A Smart Vision by Habib Rafiq Pvt. Limited

Currently there are many investment options, between new financial instruments such as digital currencies, and traditional ones such as currencies in stocks and bonds, so it is natural to ask when, how and in what to invest. Although it is always the best time to grow your capital by investing in Blue World City, there are times in life…