Every Milestone in Life Needs a Lifetime Investment

By Rashmi Goel
It is important that you keep your options open when drafting your financial strategy if you want to achieve great success. As there is no single investment that is right for every person, there is no single investment that will serve you the best for all of your life - and not just now but for the rest of your life, too. It is inevitable that both your investment objectives and your level of risk tolerance will change as you grow and reach milestones in your life. Even though there's nothing wrong with buying a long-term winner and holding it forever, it's important to complement these types of investments with those that can also support your changing needs in the future.

The First Milestone Is Graduating From College

To do all of this, you will need a savings account. Upon graduating from college, you will have the opportunity to explore the world at your leisure. The truth is, no matter what your objectives in life are, there's probably a career that's going to suit you. Whether you want to make as much money as you can or save the world, you're going to find it. There is a chance that you won't have a lot of money saved up by the time you start drawing that paycheck. Having an emergency fund is one of the best things you can do at this time. Your savings account is the best first investment you can make, regardless of whether you receive gifts from friends and family when you graduate or if you have accumulated some money from a college or summer job. In time, you will be able to start investing as soon as you reach your next life milestone, however, for the time being, it is better for you to have some cushion in place so that you are not forced into debt by both everyday expenses as well as unexpected ones. 
The Second Milestone Is Getting Your First Job After Graduating From College
It is important that you have a 401(k) plan in place. Having your first job will finally mean that you'll be able to fill up your bank account with paychecks rather than having to spend your college savings, which you may not even have had in college, to begin with. It is now that it is time to use your youth to your advantage and start putting as much money as you can into your company's 401(k) plan. The power of compound interest, plus the many benefits that a 401(k) plan offers, such as maximizing your tax deduction and earning a match by your employer, help you harness the power of a 401(k) from the moment you begin contributing to it. When you begin to save even a little bit every month in a tax-advantaged account like a 401(k) or an IRA you will be able to put a big dent in your retirement savings goals when compared to when you did not start to save.

The Third Milestone Is Getting Married

It would be a wise investment for you to invest in real estate. It is true that many newlyweds make purchasing a house one of their first priorities after they get engaged, and it is also true that getting married can often be seen as a sign of settling down. Therefore, if you are looking to buy a home together with your spouse, you'll find it easier to make a down payment since you'll be pooling your savings, and you'll be able to afford the mortgage lower than the rent you were paying separately. A house can not only serve as a great place for your new family to call home, but it can also be a great investment, as it offers tax deductions and the potential of appreciation for years to come.

The Fourth Milestone Is Having Children.

Take advantage of growth stocks by investing in them. Children can bring us a lifetime of joy, but there is also a significant financial commitment that comes along with having them. Taking into account that the cost of raising a child up to age 18 is estimated to be over $270,000 - and for a private four-year institution, the average cost of a bachelor's degree tops $200,000 - you will need your money to grow in order to afford these costs without going into debt. Growth stocks are a solid choice of investment for the 18-25 years that you will need the money as they will give you the best chance of achieving the financial goals that you have set. There has never been a period when the S&P 500 managed to post a negative return over a period of 20 years, regardless of how volatile the stock market may appear over the short term.

The Fifth Milestone In A Person's Life Is Retirement

Invest your money in investments that generate income for you.  The main source of your income will be eliminated once you retire. During this time, your investments will need to provide you with an income stream that you can live off of, especially if you wish to avoid draining your principal too quickly in the future. It is well known that retirees often live more than 30 years and still need at least a portion of their portfolios to be dedicated to growth instruments like stocks. However, most advisors recommend moving some of your money into bonds, preferred stocks and other income-producing investments in order to supplement their retirement income.