Making smart investments could help you afford your long-term goal. Whether you’re saving for your retirement or your child’s college education, it’s best to get started investing as soon as possible.
But with so many options, what investments should you take? When choosing investments, take into consideration your money, goals, intention, risk appetite, and time frame. If you need a return on investments (ROI) within 3 years, you can consider investments for short-term goals. But if you’re looking at earning several decades down the road, you should choose investments that are perfect for long-term goals. We’ve listed some of our suggestions below.
1. Real Estate
Real estate is one of the best investment options for long-term goals. It’s low-risk with high return potential because the property values rise over time. However, you must exercise caution because, if you don’t have access to continuous cash, a mortgage or house loan can become a liability. Buying low and selling high is the ideal scenario. But to do this, you need to keep up with the real estate market’s up-and-down trend. Hosting your condominium property as an Airbnb can be a good source of passive income, especially if you’re still paying for mortgage.
Those who have made a fortune in the stock market always advise understanding and researching as much as possible before jumping in. Learn the tips for successful stock trading from experts, attend classes, and read books. Investing in stocks means opening a stock trading account and buying stocks of publicly listed corporations or companies. As a stockholder of that company, you earn when the company earns and also lose when it falls short.
The idea is that you want to purchase stock at a low market price and sell it later at a higher price. However, stock market prices can be very unstable and you could end up losing your entire funds. This is why many advisors recommend investing in the stock market for more than 10 years. This gives your account years to recover from market crashes.
3. Mutual Funds
A mutual fund is a pooled investment fund managed by banks or investment companies. The idea is that a professional financial manager manages your money and uses it to invest in different assets. The advantages of mutual funds are that they’re low-risk, convenient, and have a low minimum investment. There are different types of mutual funds, and it’s best to discuss with your advisor what suits your risk appetite and goals. If done right, a mutual fund can be a good source of passive income.
These are just some of the best investments you can consider when you’re already preparing for your long-term goals. Like we always say, take the time to discuss your options with a knowledgeable financial advisor and research as much as you can. Good luck!