Enjoying The Seasons of An Investor’s Life

Just like changes in seasons, there may be changes in an investor’s life also. Experts term the phenomena as “seasons of an investor’s life“. You should understand that the income you earn keeps increasing as you age. So, you keep changing your investment decisions also. You should begin your investments early in your life so that your “seasons” will long, steady and extremely stable.

Light Minded Spring Season

This is the season when you just start investing. Since you are young, your income may not be too much. But, that should not deter you from investing. You should invest small amounts and should be regular and consistent in your investments. Since the amounts are small, you may not have many options to choose from. You can opt for some mutual fund plans and commission plans which may give you a bit of respite from the early financial crunches.

During this “season” you can learn a lot by indulging in an in-depth study of various companies and investment options. You should also explore and learn to study the balance sheets of companies for knowing their financial health. This will help you graduate to the next level of investing.

The Sultry Summer Season When The Heat Is On In Full Swing

During this season, you may have more money at your disposal than what you had during spring. You can now invest in index funds, retirement plans and income-generating investments. You can invest in individual companies’ also. Since you may still have to get a mortgage on your house, you can opt for a more aggressive stance in your investments. By focusing on retirement plans, you can make your winter season a tad bit comfortable. Alternatively, aggressive and high-risk investments may fetch you excellent returns.

Dealing With The Fall Season

During fall, you may be earning very well but your expenses may also be high. The size of your family may have grown. You may have a mortgage also. But, you can tackle all your commitments wisely. Since you may have sizable amounts, your investment strategy may completely change. You will now get to taste the fruits of your high-risk investments made during “summer season”.

You can invest these returns in stable options. You may not be ready to make risky investments now. Bonds, index funds and high-quality stocks may be your option. If you have learned your lesson well during spring or summer, you can reap very good returns during fall. You should mainly guard against squandering your money so that you can make wise investments again. You must remember that “winter” is fast approaching and your income may shrink drastically.

The Dry Winter Season

In this season, you may end up earning nothing at all. Being the last season of the investor’s cycle, it is characteristically dry and not too fruitful for the investor. But, all your investments may start yielding results. There may not be any financial worries since you have planned well during the previous seasons. You will be enjoying the fruits of the good investment decisions you started making during the “spring” season. Since you put your best foot forward, everything will go on smoothly, allowing you to enjoy the last season.

About Author : Lauren Devaney is the author of this post and a financial analyst. She has been working to provide fast and secure pay day loans through her website.

Vijayraj Reddy
Vijayraj Reddy is founder & editor-in-chief of Startmysalary.com, a financial blog which helps people to earn money, invest money and save money. You can find him on Facebook & Twitter or send him email at [email protected]

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3 Responses to “Enjoying The Seasons of An Investor’s Life”

  1. Bram de Haas says:

    Nice article on the financial cycles you are bound to go through during your lifetime. It works fairly well to apply seasonality to an investor’s life. It might also help to keep investment decisions in a longterm perspective.

  2. PrIyAnGsHu says:

    Great tips Lauren. This post will be quite helpful for the investors :) .
    PrIyAnGsHu recently posted..I’m Not Making Any Money Out of My Blog – Why ?My Profile

  3. aditya rai says:

    exactly, nice tips which can motivate the investors specially from India, as we need it
    aditya rai recently posted..Best & Selected Review Based Website WordPress ThemesMy Profile

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