Long Term Investments Strategies

Long Term Investment Strategies

So, you realize that you need to start looking into long term investments. But where do you start? How do you know which investments are the best long term investments? Should you use a broker, or do it on your own. Here are some of the most tried and true long term investment strategies.

Start by Setting Goals

As with any other type of investing, proper long term investments start by setting proper goals. How much do you want to have when you retire? What age do you want to retire? How much should you invest monthly to reach that goal? Are you willing to do your own investing, or do you want someone to show you the ropes. Write these goals down to help guide you as you choose your investments.

Choose the Right Firm

If you decide to seek help looking for your investments, choosing the right firm is important. Make sure you choose a firm that will follow your investment goals. They should work with you to find the best investments, not against you. You should feel like you are in control, even with their help.

Invest at Regular Intervals

If you can invest a little every month, that is better than investing a huge lump sum at the end of the year. This is because the dollar cost average goes down, and you can invest in the cheaper shares of the same stocks.Talk to your broker about more information about this. Remember, pay yourself before you pay anyone else. A good goal is to invest around fifteen percent of your income each month. Do this before you shop, or pay off other bills. You may want to consider having these payments automatically deducted from your paycheck, before you even see them.

Increase Your Paycheck

Yes, you can increase your paycheck, even if your boss is not offering a raise. Consider claiming a few more deductions on your W-4. Your tax return should be as close to zero as possible. Take the extra money you receive, and invest it. It does not make financial sense to give the government your money to play with free for a year.There are some tax refunds, such as the child tax credit, that you will receive no matter what you do. In that case, consider investing your tax return, rather than spending it on a large purchase. Remember, your future is counting on what you do now!

Use Your Noggin!

Make sure you are investing wisely. Do not take on too much risk, but on the flip side, make sure your investments are earning interest. Choose funds that consistently bring in profit. That is the best way to make sure your money is safe!

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