7 Tips to Productive Investments Before You Turn 50

Youngsters often make mistakes like taking too much time to invest, indulging into unnecessary items, and dipping deep into savings for retirement etc., and then regret around the age of 50 years when they actually need money. This article address some common mistakes aiming at you not make them so that you don’t have to regret when you turn 50.

1. Wait until the income is high

Youngsters commonly have this illusion that if they have a low income, then they don’t need to start saving. For them, spending is more important than saving. Clearly, this is a misconception.
If your income is small, then you have less to save. However, you do have some money to invest and that’s the power of compounding, which grows the money. No matter at what age you start earning, you should start your investment right from the day you get your first salary. Moreover, you can increase your investment amount gradually with the increase in your income over the years.

2. No Health or Life Insurance Coverage

Health insurance is a type of investment in an assurance of a healthy and stress-free life ahead. You don’t have to worry about your medical bills and hospitalization expenses if your purchase a good health insurance policy, which is possible if you compare health insurance online. You also get tax exemption under section 80D of the Income Tax Act, 1961.
Likewise, a life insurance policy safeguards your loved ones financially by providing them with a sum assured as the death benefit, in case of your unfortunate demise (as per the policy terms). In this case too, you get a maximum tax exemption of Rs. 1, 50,000 under section 80C of the Income Tax Act, 1961.
If you’ve dependent parents who are above 60 years, then you can purchase a separate senior citizen health insurance to provide them with an assurance of health and financial safety. Moreover, you get additional tax exemption subject to the premium paid for that policy.

3. Take a little or almost no investment-related risk

Mr. Sharma, 31 years, Gurgaon
Monthly Income: Rs. 1 lakh
Equity Exposure: NIL
Mr. Sharma is young and works in a multinational company. He has a steady job yet she chooses to invest in Public Provident Fund (PPF) and Savings Bank Accounts, as he doesn’t want to take a risk at all. Experts say that one should invest their money in multiple different instruments, as the returns from these instruments do vary. He needs to consult a financial advisor if he cannot manage his investments on his own. Or else, he could conduct a research around multiple investment instruments to find a way out.

4. Need to follow Asset Allocation

Not each investor has a comprehensive knowledge of the market. Individuals working in different organizations don’t have a thorough idea of the market performance. If an individual is starting to invest in one or more investment instruments, they must conduct a research around those instruments or consult an experienced financial advisor. Since rebalancing the investment is a tedious task, and not everyone wants to take a risk when it comes to money.

5. Get lured by One or More Dubious Investment Schemes

There are scenarios when people are fooled by one or more fraudster investment brokers in the name of schemes offering alluring returns. Investors should take such offers as a red signal and back off. Another basic step they can take is check whether or not the particular scheme is approved by the investment regulatory.

6. Short-term Stock Market Investments

Mr. Gupta, 32 years, Mumbai
Lost: Rs. 11.3 lakh in Stock Guru Scheme investment
This is just another investment scenario. There are times when we get attractive returns through our investments and we think we took one of the best decisions in our lives that we invested in that particular fund or stock. However, we don’t have an idea of the coming losses that we may come across at any time. Mr. Gupta was new to the stock market investments and he initially invested Rs. 3 lakh since he was skeptical. He chose to invest in Stock Guru Scheme and got Rs. 70, 000 in just one month. He became greedy and invested Rs. 10 lakh for more profit. However, he got nothing as returns.

7. Dripping into Public Provident Fund (PPF)

Ms. Avasthi. 35 years, Gurgaon
PF Balance: Rs. 15 lakh as she changed about 12 jobs in the past 5 years.
PF is a part of one’s salary structure and it is deducted automatically at the employer’s end. If an individual has been working for about 15 years, they must have a good amount of money in their PF account. Ms. Avasthi has been working for the past 15 years in multiple organizations. However, she couldn’t get a stable job in the past 5 years and she had to change 12 jobs. Over these years, she managed to gather Rs. 15 lakh in her PF account, which she never withdrew since she wanted to save the money for her retirement.
There are investment schemes that offer better returns/ interest than an EPF account.


You should start planning your investment the day you start earning and make your first investment once you get your first salary. There are numerous options if you plan to invest your money. Don’t always look for risk-free investment options but look at the returns too. Beware of fraudulent schemes, as you might end up losing your hard-earned money.

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