As we age, the demands of our skin, body, and health change; our money is no exception. The start of a new year is always a good time to review our finances. How have your obligations changed? Are your financial or retirement goals different from last year’s? What does your investment portfolio look like?
Now that I’m in my 40s, I am painfully aware that I have less time to build my nest egg than, say, a woman in her 20s. But what I lack in time, I try my best to make up for in cash. Ideally, the amount we should set aside for saving and investing should be proportional to our income. Earning more means being able to invest more, not just spend more.
Our risk appetite changes as we age and, also, as we reach certain milestones in life. Two women of the same age and income bracket can have vastly different risk appetites. Marriage, mortgage, and motherhood are just some of things that would determine how we invest.