The first 40 years, that is, when you are 25-65 years old, is a process of accumulation, and it is also a time for you to work hard to make money. Your biggest responsibility is to spend 10% of your income on asset allocation every year, and your role is as an investor. But most people have made mistakes, and they hope to get high returns from the market. However, they didn't spend any money on asset allocation. Not only do they not allocate assets, but they also rely on high returns from the market. So in the first 40 years, your task is to be an investor and make some contributions to asset allocation.
Then you will enter the second stage, 55-60 years old. At this time, you began a new change in asset allocation: you began to stay away from risks. You can take risks when you are young. But at the age of 55, he began to be conservative and reduce the risk.
Next, you enter the third stage and prepare to retire. At the age of 65, there is no longer labor income. For young people, getting rich is not the first priority, but we should consider whether we can really use money when we need it after retirement. Most importantly, we should make some investment decisions with our wisdom when we are young. Of course, mentality is also very important. Many young people like to speculate and gamble, which should not be. Time is the foundation, and long-term investment thinking should be formed. In this process, we must avoid losses. If you lose a lot, say 50%, it may take more than ten years to make up for it, and it will also affect your retirement. What you should be concerned about is how to get a stable income for a long time, because your loss may take several years to get back.