An Investment Guide For 30 Year Olds

Once you hit your 30s, you are at a point in your life where you have a decent amount of experience with financial planning. You might even be planning to start a family, or maybe you have a family already! And at this point you may even want to buy your own house. However, as your financial goals grow in scope, your need for generating wealth also grows in tandem. Your 30s is the time when both investing and protecting your finances are equally important.

Moreover, if you start a family, you will need to be a lot more careful while making investments. You cannot afford severe losses that can jeopardise the financial safety of your loved ones. You will also need insurance to safeguard your family’s future even when you are gone. Let’s take a look at some of the core aspects that you need to keep in mind while investing in your 30s.

Think About Long Term Goals

Your 30s is the time when you need to start planning for your financial end goal. You should avoid making investments for short term profits. Instead, investments should be made to grow your savings for serious financial goals in the future. For example, buying a house is a goal that most people share, but this goal can be extremely difficult to achieve without a good financial plan. Setting up long term investments will help you grow your wealth and purchase your dream house in the future. Wealth becomes more than a means to an end, it becomes a goal.

Safeguarding Your Loved Ones

Once you get married and have kids, safeguarding your family becomes your top priority. Your loved ones depend on your income to maintain their standard of living. Saving money becomes far more important than it was in your 20s. Moreover, if you are the sole breadwinner of your family, the loss of your income can create serious financial problems for your loved ones.

This is why everyone in their 30s who has a family should consider investing in a life insurance plan. In the unfortunate event of your death, a life insurance policy will provide your loved ones with a lumpsum (known as the sum assured) that can help them maintain their lifestyle and avoid financial hardships.

Evaluate Your Risk Appetite

In your 30s, the best investment plan for your needs will be the one that most suits your risk appetite. You should never make an impulsive investment. An investment should only be made after you have judged its pros, cons, and the financial risk involved for you and your family in case the investment fails. If you don’t have a family yet or if they aren’t dependent on you, then you can take on more risk. However, if you have dependents then it might be preferable to opt for safer investments. If you aren’t sure about your risk appetite, contact a professional financial advisor who can help you create a secure financial plan for your future.

ULIPs: Investment and Security in One Plan

A Unit Linked Insurance Plan (ULIP) is a type of insurance plan that also includes market linked investments. These plans are the perfect balance between investing and financial security. The life cover protects your loved ones in case of your absence, while the market linked funds grow over time to help you fulfil your life goals. Moreover, you can even switch funds within a ULIP to maximise your growth.

You can either keep a track of how the market is performing yourself, or you can just let the insurer manage the funds for you. Moreover, ULIPs also provide you with tax benefits wherein you get tax exemption on both premiums paid and returns. These benefits are offered thanks to Section 10(10D) and 80C of the Income Tax Act. Tax benefits can further boost your savings and help you achieve your financial dreams sooner rather than later.

While you are shortlisting various ULIPs, you can check out Edelweiss Tokio Life- Wealth Rise+, which is a ULIP that offers a bouquet of seven funds along with special benefits for your kids. Now is the right to invest for your long-term financial goals. Check out how you can grow your wealth here.

Siddhant Dubey - Writer & Photographer

Siddhant works as a freelance content writer who is interested in a wide range of spheres from photography and personal finance to cooking. He is also an aspiring photographer striving to showcase life around him through his vision.