Jim Cramer’s guide to investing: How to invest as you get older

As you age, your investing goals may change, with less risk being ideal in later years according to CNBC's Jim Cramer, who recommends investing the first significant amount of savings in an index fund while gradually curating a diversified stock portfolio and considering fixed income assets in the thirties or forties.

cnbc.com

Relevant topic timeline:

8/24/2023

How Long Should Your Time Horizon Be in the Stock Market? - A Wealth of Common Sense

For a specific financial goal with a 5-year time frame, investing in the stock market can be risky due to the wide range of potential returns and the risk of loss when the money is needed; instead, utilizing a target date fund or robo-advisor that diversifies and adjusts risk tolerance over time is a more suitable option.

9/6/2023

Here's how much investing $1,000 a month will equal when you're ready to retire — and yes, you can be a millionaire if you get the timing right

Investing $1,000 a month starting at age 30 or younger can potentially result in a retirement savings of over $1 million, while even starting at age 60 can still yield around $81,623, thanks to the power of compound interest.

9/6/2023

Advice

Summary: It is important for young adults to start saving for retirement in their 20s due to factors such as the potential impact on their take-home pay, the power of compounding, the need to develop the habit of saving, the risk of inflation, and potential changes to Social Security.