Long-Term Investing Info

To understand the point of a long term investment it’s important to really understand what investing is. It is the commitment of money or capital to purchase financial assets or instruments in order for you to gain a profitable return. That return comes through in the form of interest, appreciation of the value of the instrument or income. Investment is related specifically to saving, or deferring consumption.

In short, it’s the practice of injecting money with the expectation of getting more in return. While investment can come in a variety of forms (including business management and economic form), the concept of long term investments here relates specifically to finance. This investment refers to purchasing securities or other financial assets from the capital market or buying money market or real property with high market liquidity.

A few examples would be gold, silver, property or precious items. Financial investments can include stocks, bonds and other types of security investments either alone or with the help of third party mediators including pension and mutual funds, banks and insurance companies.

 

The Long Term Investment

Virtually any investment can be made into a long term investment and some are designed specifically for this kind of return. Others may not fit into the model of long term investment, and can bring about a much greater risk of loss when approached in this manner.

Stocks - Trading stocks is traditionally seen to be a smart long term trade on larger companies where growth and high projections are expected. Prices do fluctuate regularly however, which is how day traders make their money off short term investments.

Read more about stock investingĀ 

Bonds - Bonds are designed to be long term investments, with a greater payout on interest to the holder of the bond with extended investments, particular those in the 12 to 30 year range.

Read more about bond investing

Real Estate - Real, tangible and physical items that can appreciate in value or improve in value through modification are often long term investments for many seeking to cover retirement. The risk of loss on long term investments in real estate is always possible, much like any other investment, however unlike some other long term investments real estate can generate an immediate income while owned.

Read more about real estate investing

Precious Metals - Precious metals such as gold, silver and platinum have continued to climb in the last 20 years, and many of those who invest in these metals are doing so with a long term interest in hopes of a continued climb.

Read more about precious metal investing

 

Why Choose Long Term Investments?

In almost every case, a long term investment has the potential to create a higher payoff. For those investments with regular payouts they can also serve as a supplemental income stream. When you compare regular income along with an eventual principle repayment to the rapid turnaround of a short term investment there is often a significant difference in the dollar amounts between the two.

This information is for educational purposes only and in no way guarantees your profitability by trading the equities mentioned. See Terms and Conditions.