How to plan for your life-stage?

You must have heard the thumb rule of how much to invest in equity. It states that you should have (100 - Your Age) % of your net wealth in equity. So if you are 40, you should have 60% of your net wealth in equity. 

But is this necessarily correct? 

Your equity exposure depends on the proximity to your goals, and it is very doubtful that anybody has only 1 financial goal in their lives. So a single equity percentage based on your age cannot apply.

Two generations ago, life was comparatively much simpler financially. You would go to school, maybe to college, get married in your 20s, have children by your 30s, work in one company for almost your entire working life, buy a home on retirement, and retire peacefully by 60. 

Things are different now.  Creating a successful and powerful plan for your financial life in today’s times has very little to do with your age and a lot to do with major life stages / events when you make the plan.

Let’s see what these life stages / events are and what the best approach is to deal with your finances in each one.