Being aware of the best time frame to start investing in bonds will have a significant impact on your portfolio and increase your financial worth when it comes time for retirement. Many people believe that they should start buying bonds early. However, those purchased while the buyer is in their 20s, 30s and 40s may not result in enough income for a comfortable retirement. Instead, there is a scale of when to buy bonds and the portion of your portfolio to devote to bonds at certain decades of your life.
For example, Jim Cramer of “Mad Money” has some strong advice for when to start investing in bonds. He notes that before the age of 30, there is no reason to have bonds in your portfolio. Once you pass that magic age, however, your portfolio should consist of as much as 10 to 20-percent bonds. That number increases to 20 to 30-percent in your 40s and further increases to 30 to 40-percent in your 50s. From age 60 to retirement, the portfolio should include 40 to 50-percent bonds. Cramer also advises owning high yield stocks that generate income with less risk, and he notes they should be up to one-third of your portfolio at that time.
Get rich quick schemes are popular with our society, where instant gratification is so common no one thinks to invest time and effort to reach a goal. However, there are no proven schemes that result in enough money to create sustainable wealth. Therefore, people have to go back to the tried and true methods of money growth through wise choices and the passing of time. The urge to hide money under your mattress may be strong, but you have to be willing to take some risk in order to see some return. This is a truth that has withstood the changes of time and finance expectations.