Most financial experts (of which I am not) will tell you that long-term investments can be the best and the safest that you can make. There are certainly those that would argue this point but, rather than do that, we will just accept the fact that long term investments can be solid investments and, with that in mind, present some excellent Tips that you can use in 2013 to make sure yours are solid.
Hot tips can sometimes burn you. You should always be wary of anything that’s ‘hot’ in the investing world. Do your due diligence and research before you take anyone’s advice, even a friend’s. If it looks ‘too good to be true’ then it probably is.
Confucius say ‘all will have a bad day once in a while’. What this means is simply that, when you suddenly have a bad day investment-wise, or even a string of them, there’s no need to panic. If you’ve researched and chosen solid investment opportunities daily fluctuations don’t really matter.
Stay the course. If you have a clear strategy and your investments are doing well don’t change it. It’s only if there is a very clear sign that your strategy isn’t working that you should even consider changing it lest you lose everything you’ve already gained. Remember, patience is a virtue in life as well as in investing.
Think around the box. In the UK there is a very strong market for ‘alternative’ investments. Things like fine wine and local art, for example, can diversify your portfolio and even make investing a bit of fun. There are plenty of opportunities out there if you do a little searching and ask some questions.
The taxman cometh, but no worries. The sad truth is that many investors stress over lowering the amount of money they make so that they don’t pay as much in taxes. We think the opposite is true. Make as much as you can and let Uncle Sam take his cut. In the end you’ll do better and have less stress.
A number of other Tips that you should keep in mind are these;
Long term investing means that your money won’t be available for quite some time. If you’re going to need access to said money they may not be your best choice.
Long term investments can pay handsomely. The key is to have the patience necessary to let your money grow for many years.
Investments like fine wine are only good long-term investments if you don’t drink them.
Penalties for taking money out of long-term investments can be high.
These Tips should help you to make some great decisions this year about your long term investing goals. Good luck with them and please make sure to come back soon for more.