An investing strategy will differ depending on what stage in life you are in.  Your age has a lot to do with where you should put your money.  Here are some of the best investment opportunities for all ages and demographics.

If you are young, you will want to take a little more risk than when you get older.  Everyone has different risk tolerances, but if you’re young you should be a little more aggressive than your parents.

Aggressive investment options would probably include investing in small cap stocks.  The stock market basics of small caps are that they have the best change for high growth over time.  Just think about all of those people who invested in Microsoft when they were young and the stock was small.  Now they are older and rich.

Small caps do have it’s risks.  In fact, they are just flat our more risky.  That’s why you would want to spread your money across multiple small caps over time.  You need to be young because you also need time to recover from inevitable dips that most small socks go through.

If you are young, you may also want to think about investing in a business of your own.  Now is the time to invest in a business.  If you have dreams to do that, do it before you will need a large amount of cash to pay your living expenses as you age.

If you are older, you will want to take money out of riskier assets to more conservative ones.  This would include income generating assets like bonds and dividend stocks.

You need to watch out for the tax implications for these income investments.  They are taxed as income which is higher than capital gains taxes.  So just watch that your retirement fund doesn’t get eaten away by taxes.