The 5 Best Long-Term Investments That Last a Lifetime
Your lifestyle design shouldn’t put blinders on what happens in the next 10, 20, or even 50 years. Plan for the future with the 5 best long-term investments.
Some people spend their money, others save.
The people who want to grow their money and live a different lifestyle invest their money.
Let’s talk about long-term investments that can change your life.
Why Should I Invest?
You may put away $5 or even $100 every single week in your savings account. Over time, you watch that savings grow.
By investing your money, you aren’t just adding up the deposits that you make, you could also be:
- Keeping up with inflation – That’s right. Markets are a great way to allow your savings to maintain its value. After some time, the money that you have in your savings for retirement could lose some of its value.
- Making passive income – Dividends, rent, and many other investment methods can give you some extra cash flow.
- Accelerating your earnings – Reinvesting dividends or just pure capital gains is a real way of making money without ever looking at it.
If that isn’t enough, investing can lead to early retirement, financial security, and living a happier life.
5 Long-Term Investments
Let’s talk about the best investment strategies to start today.
Remember, there is no minimum amount of money needed to get involved in any of these strategies. Anybody can get started with any amount of savings they have.
Stocks
This is what everybody thinks of when they hear about investing, and there is a reason for that.
Sure, you’re in for a bumpy ride as trends change all the time, but investors should not look every day, as this can lead to impulsive decision-making.
Keeping your money in safe companies that are trending upward at a slow, consistent pace, can keep your money growing for years.
If you are not investing for growth, there are many stocks that offer dividends. At the end of each month, quarter, or year, the corporation pays its shareholders a portion of the profits per share, as shareholders own part of the company.
Check out djia today to learn more or get started.
Long-term Bonds
This is a very safe option, often used for the stability it offers.
Bonds work by governments, in need of quick funding, that offers interest over time and will pay back the full amount upon request. Most simply, bonds are debt obligations owed to the buyer.
Buying bonds have the stability needed to guarantee growth, but with a fixed amount of growth potential. Lower risk, lower reward.
However, bonds are a better alternative to savings accounts, as the interest rates are often higher than what commercial banks will pay. They are also great for people who are not comfortable keeping their money in a fluctuating market.
Real Estate
Real estate is one of the best for semi-passive or passive income. Whether you invest in a REIT (Real estate investment trust) or you purchase your own property to rent out, money flows in at a consistent pace.
Owning a property to rent out can cover the mortgage payments, and even give some profit on top. After the mortgage is paid, the revenue continues with a higher profit margin.
Retirement Plans
These are tax-sheltered, long-term plans that can get you the financial security you need when you decide to retire.
Adding a portion of your income (with a possible company match if you are an employee) adds up over time, and is tax-free.
Invest in Yourself
This is the most important investment you can make.
Find out what is best for your needs, whether it be starting your own business, continuing education, or getting a better job.
Learn more about investing in you, and the strategies to success.
Next Steps
Whether you are young or approaching retirement, there is no better time than now to learn more and get started with long-term investments.
It will improve your life down the road, and you won’t regret it. Whichever path you choose, make sure you know the risks and that you are prepared for the rewards.
Be mindful of the future, and you won’t regret it. Learn how to set your mind for success and get started today.
