The three key stages to having a balanced, rewarding portfolio

In broad terms, the post-education population could be divided into three age groups of under 40, 40-60 and post 60 years:

Acquisitive, aiming for first property purchase, possible school fee provision and commencing retirement funding

Accumulative and repayment, consolidating home and ensuring comfortable retirement

Consolidate and manage savings, maintaining quality of lifestyle.

The first phase needs to build up sufficient capital to fund a home and possibly improve it. The Help to Buy ISA, which was launched last month, is a great incentive. Up to £1,200 can be invested initially and a further £200 monthly after that. The Government will add £50 to each £200 saved. Halifax currently offers the best rate at four per cent.

In the under 40 years age bracket, although there are so many calls for finance elsewhere, either start a pension or make an alternative arrangement for retirement. For the newly born, life expectancy is now 93.2 years for females and 90.4 years for males, according to the Office for National Statistics.

A self-invested personal pension (SIPP) will let you be in control and is likely to outpace the ultra-cautious pension insurers. With possibly three decades to go before using retirement money, accept some higher risk for companies and collectives where volatility may occur.

A key area not to overlook is protection insurance. There are three priority strands: critical if a serious health problem occurs, income if you are unable to continue your work, term in the event of death. Obtain professional help from an independent broker who can guide to the most appropriate products and providers.

Take a long prospective by opting for growth and buy a collective to reduce risk. Place at least 40 per cent in emerging markets with the balance in global equity.

For the former, consider JP Emerging Markets, Aberdeen New India and Jupiter India. For the latter, Rothschild-led RIT Capital Partners and Baillie Gifford’s Scottish Mortgage, both investment trusts, have terrific records. Scottish Mortgage has no home loans but has been successful by buying key stakes in Alibaba, Amazon, Facebook and LinkedIn. It has outclassed every major trust over the medium to long term.

The mid-age group is a time to really build up the capital but taking into account how inflation can erode savings. The current exceedingly low level should not be regarded as normal. Go for growth rather than income on investments with 80-85 per cent in equities.

Avoid China whose economic data cannot be trusted. Ensure a fair proportion in mature markets like North America and go for some acorns which can turn into oaks: Legg Mason IF Royce US Smaller Companies and Standard Life UK Smaller Companies.

If saving from earnings, start monthly contributions. With investment trusts, seek managers who make no or low administrative charges for either investing (only the 0.5 per cent stamp duty) or holding in an ISA or SIPP.

Trackers mirror indices as closely as possible. These passive investments are usually low-cost and can provide a solid investment base but performance can be disappointing as they may be unduly weighed down, like the FTSE 100, by mining, gas and oil companies. In 2014 this index fell 2.7 per cent and last year by 4.9 per cent. Opt instead for more broadly based indices like the FTSE 250 (up 8.4 per cent in 2015) or FTSE All-Share.

Buy bonds for the 15-20 per cent invested outside equities. Quality sterling corporate ones to consider include Kames Investment Grade Bond and Royal London Corporate Bond. For sterling strategic bonds, look at GLG Strategic Bond and PFS TwentyFour Dynamic Bond.

Overpay a mortgage wherever possible. Most loan providers will permit 10 per cent capital repayment annually without charge. Start children on savings plans, notably with a tax-exempt friendly society scheme (maximum £25 monthly or £270 annually although the figures do not equate), Junior ISA and a pension. Currently even a baby can contribute £2,800 pa and the Government boosts this to £3,600.

Check you are on target for retirement which is usually regarded as two-thirds of final salary. To see what can be expected from the Government, visit the website gov.uk/state.pensionstatement.

Those post-60 years need to ensure sufficient funds for old age. The number of centenarians has soared by 72 per cent over a decade and yet many underestimate their likely longevity. Capital needs to be protected. It should be as diversified as possible with the accent on income rather than growth.

Low-risk assets with less dependence on equities should be the shape of a portfolio. Whilst income fund managers rightly seek companies paying generous dividends, some may take greater risk by purchasing high yield debt and use derivative strategies.

In the UK equity income sector, high yield is currently paid by Insight Equity Income Booster, Premier Optimum Income and Schroder Income Maximiser.

For an international perspective, both Artemis Global Income and Newton Global Income show good management.

The annuity route has the certainty of payment but may not be a good deal. Many providers have not enquired sufficiently whether someone was eligible for a higher award annuity on health grounds.

Some solid funds run by highly experienced managers should still be sought like Rathbone Global Opportunities which has 55 holdings. Keep five per cent for exciting ideas, such as funds which reflect aspirational lifestyle, like JB (Julius Baer) Luxury Brands and Pictet Premium Brands run from Luxembourg and Geneva respectively. This is a way to gain from such makes as Hermes, L’Oreal and Tiffany.

Check with an experienced independent financial adviser the level of risk for where your money is invested.

One obvious area is to ensure the ceiling for protection under the Financial Services Compensation Scheme is not exceeded. This fell by £10,000 last week to £75,000 for each banking licence. However, one licence may cover several different brands.

Avoid investing in areas you do not understand. From industrial sapphires and forestry to film production, if the project sounds mysterious and has little or no proven business history, it is best left alone.

Finally, keep a regular eye on your portfolio. On the website, look at the free information available from FundCalibre (offered by Chelsea Financial Services), discount broker Hargreaves Lansdown, Morningstar, stockbroker TD Direct and Trustnet.

If you lack the experience or time, use a respected wealth manager for guidance.

Handling a lifetime’s portfolio is not for an amateur and their fees will seem modest in relation to the expertise offered.