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potential returns; stocks, for example. After all, if it doesn't go well, you'll have decades to recover. But then again, if $5,000 is all you have to your name, you may not want to risk your principal. It comes down to your tolerance for risk. The Building 30s By this time, the boxed macaroni on the 30-somethings' table has likely been replaced with some homemade mac and cheese, topped with romano and paired with a pinot noir. Likewise, the 30-year-old's investment strategy should also be raised a notch on the sophistication scale. "In their 30s, people tend to be more serious and knowledgeable about what suits their needs," Petonjic-Rogers says. "But they also may be buying a home and carrying other debts." At this age, it's tempting to put all of your energy into paying down a mortgage. But as the last few years reminded homeowners, a house is not a fail-safe investment, and the best defense against downturns and eco- nomic upheavals is a diversifi ed portfolio. "Don't put all your eggs in one basket," Petonjic-Rogers cautions. So, if you haven't done so already, this is an ideal time to sit down with an invest- ment advisor and learn how to diversify, as well as work out how much money you'll THE BENEFITS OF INVESTING YOUNG JANE DOE STARTS INVESTING AT AGE 25. SHE PUTS $100 a month, INTO AN RRSP UNTIL SHE TURNS 65. IF HER SAVINGS EARN 5% IN INTEREST ANNUALLY, SHE WILL RETIRE WITH: JOHN DOE STARTS AT AGE 35, ALSO PUTTING $100 a month INTO HIS RRSP AT 5% ANNUAL INTEREST UNTIL HE TURNS 65. HE RETIRES WITH: $144,959.73 need for retirement. The industry standard for the amount you need is 70 per cent of your income – so if your household income is $100,000 a year, your pensions and investments need to provide $70,000 a year. But like all rules of thumb, there are dif- fering opinions (a few recent studies point out that people who live in less expensive cities or have different retirement goals may not need as much). The bottom line: your retirement is in your hands, and nothing $79,726.62 beats the advice of an expert, who will go over your goals and situation and help you get where you want to go. "Sit down and create a list of your top fi ve goals," Petonjic-Rogers says. These may include being mortgage-free, reducing your work hours to part-time or buying a vaca- tion home or RV. Whatever it is, if you plan for it, it's more likely to happen. Another good starting point for work- ing out how much you need to retire is Service Canada's retirement calculator, at: servicecanada.gc.ca. The Stable 40s At this stage, retirement is closer on the hori- zon, and many people can develop a more realistic vision for their post-work life. If you haven't already done so, you may consider placing money in mutual funds, which is a diversifi ed way to play the stock market. In these funds, professionals manage the money provided by a pool of investors and buy into areas that are typically considered higher-risk and higher-return, such as stocks and bonds. Because a group of people con- tribute and the money is placed in a variety of places, it's considered safer than buying individual stocks. This is also a good time to re-evaluate the plans you made in your 30s. No one has a crystal ball, and your vision of retirement at 31 may be very different than when you're 45: maybe you decided to go back to school or buy a bigger house. The Return-to-Caution 50s Over time, early retirement has become more common. According to the federal 48 WESTWORLD >> NOVEMBER 2011 (top) iStock; Masterfile

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