Lifecycle Investing: The Ultimate Strategy for Younger People – An Example

Unconventional Wisdom

I often get asked about Lifecycle Investing and how to implement it.

If you're under 40 and saving to achieve financial independence, this might be the most powerful strategy you’ll ever learn.

Lifecycle Investing has proven itself consistently over the last 150 years, increasing portfolios at retirement by an average of 63%.

It has worked 100% of the time, and its success lies in addressing one of your biggest financial risks: “Last Decade Risk.”

However, it’s not for everyone.

This strategy often involves borrowing to invest and maintaining a high equity allocation during certain phases of your life.

Think of it as a concept rather than something to execute literally. Understanding it can completely transform how you manage your money.

Get your Financial Plan first.

Lifecycle Investing involves thinking through the best way for you to do it over the next few decades. Creating your Financial Plan is an interactive process to help you think through all your various life options.

To understand Lifecycle Investing, first you need to understand what is wrong with the conventional method of “bit-by-bit” saving. An example is the best way to understand it.

In my latest podcast episode you’ll learn:

• What is Lifecycle Investing?

• Why has it increased portfolios 100% of the time over the last 150 years by an average of 63%?

• What is “Last Decade Risk”?

• How does a bad decade just before retirement impact your savings?

• What’s wrong with conventional “bit-by-bit” saving?

• Why do returns before age 45 have so little impact on your life?

• How does Lifecycle Investing finance your retirement like a mortgage finances your home?

• What does it mean to diversify across time?

• What’s an example of Lifecycle Investing compared to traditional saving?

• How do you adapt your asset allocation for Lifecycle Investing?

• How can you implement it?

• How can it work for those who want maximum growth?

• Why is a financial plan crucial before starting Lifecycle Investing?