Starting a career: age between 20-30 years old
At this stage, the saving proportion might not be that much due to limited working experience, skills, and connection. However, the saving portion might be started at 10% of income. Besides, financial knowledge is essential, particularly learning about various saving types and investment tools. At the beginning, equity funds is worth trying and then may think about playing the stock. At young age, investment in the stock market can be up to 70-90% of total allowance.
Building a financial stability: age between 31-40 years old
During this period, most tend to earn more than the previous stage and start to build more stable financial status. Looking for a house, buying a car, and having a family are usual requirements. Based on higher income and more demands, saving amount should be risen as well. It can be up to 30% of income or even higher. For investment portfolio, it should be a mix of high and medium-low risk of investment types to balance the risk with family security and other commitments.50% might be adequate for stock allocation and the others to medium-low risk funds, including insurance and investment instruments that allow tax deduction benefit.
Retirement preparation: age between 41-55 years old
This is probably the peak period of earning for most people. There are more of assets and savings, as well as expenses. The risk of illness also arises, and it requires medical insurance protection to mitigate financial burden and secure other future plans. At this stage, low risk investment is recommended since less time left for making money. Investment in stock can be kept at 20-30% of total investment allowance. Bank savings and pension insurance plan are also suggested.
The golden age of retirement: age above 55 years old
This is an enjoying time of life after a long period of working and financial planning. It is recommended to find a hobby to do, spend retirement fund wisely, and continue to invest especially in low risk alternatives e.g. bank savings and money instruments. For those who purchase pension insurance before, guaranteed living benefit will be paid out annually after retirement.