Successful Retirement Plan for Age between 31-40 Years

Starting to set retirement financial plan since the early 30s is suitable as you have an advantage of long-term investment, a chance to restart if you fail and gain experience. However, it’s better to start investing at the age of 20 as there are not many burdens at that time, and young people have the potential to earn income and are capable to invest in high-risk bonds to get high profits. If you start investing for retirement earlier, you’ll achieve your financial goal faster


However, people at the age between 31-40 normally have precise goal and start settling up their life for a secure future. They mostly have family and more expenses such as housing and car installment. Those who get married will have a big expense for their kids, etc.


As a result, people aged 31-40 tend to pay less attention to retirement plans or arrange little money for investment. We recommend that they contribute 15-20% of income to set retirement financial plan. 


For example, your goal is to save 1 million baht for retirement, and suppose you gain 5% profit a year after investment.
 

If you start investing continually at the age of 31 for 1,250 baht per month (15,000 baht annually), you’ll have 1,046,412 baht when you reach 60 years; investment money (principal) is 450,000 baht, and another 596,412 baht is investment profit. 


If you start saving money at the age of 51, you’ve to invest 6,300 baht per month (75,000 baht annually), you’ll have 1,003,716 baht when you reach 60 years; investment money (principal) as much as 760,000 baht, get interested at 243,716 baht only. 

Arrange investment portfolio 
 

Investment portfolio for people at the age of 31-40 should be Balance Portfolio and consider how much risk you can take. Also, focus on investment with high-risk assets to speed up the growth of the port because young people have plenty of time to invest. Adjusting the port for lower risk when you’re getting old and arrange portfolio by status such as single, married with kids, married without kids, etc.

 

Samples of arranging Investment Portfolio

High-risk Portfolio, suitable for the age of early 30 and single

 

Assets

Proportion

Stocks / Mutual Fund / Thai stocks

25%

Foreign Investment Fund

15%

Property Fund / REITs / Infrastructure Fund

20%

Mixed Fund

10%

General Fixed Income Fund

15%

Gold

5%

Savings deposit

10%



Medium-risk Portfolio, suitable for the age of 35, single,

or married couple without kids

 

Assets

Proportion

Stocks / Mutual Fund / Thai stocks

20%

Foreign Investment Fund

10%

Property Fund / REITs / Infrastructure Fund

15%

Mixed Fund

15%

General Fixed Income Fund

20%

Gold

5%

Savings deposit

15%

 



Low-risk Portfolio, suitable for the age closer to 40,

or married couple with kids

 

Assets

Proportion

Stocks / Mutual Fund / Thai stocks

15%

Foreign Investment Fund

5%

Property Fund / REITs / Infrastructure Fund

15%

Mixed Fund

15%

General Fixed Income Fund

25%

Gold

5%

Savings deposit

20%

 

Don’t worry too much about the future as nobody can tell you what your future will be like. You should arrange your retirement investment in line with your current lifestyle. More importantly, start setting your plan at an early age so you’ll have an opportunity to enjoy spending money throughout your retirement.