Long-Term Investments to Get Rich in Old Age

long-term investment

Have you ever heard of the term long term investment? How do you think about this type of investment?

Investing is one of the activities favored by many people to date.

With the investment, you can protect your wealth assets in the future, so that later you will have certain financial guarantees.

Many still do not realize the importance of investing, but not a few are already prepared to invest.

There are two types of investment, namely long-term investment, and short-term investment. Then, what is meant by a long-term investment, and what are some examples of these investments?

In this article, omdody.com will explain what long-term investing is, complete with examples, strategies, and more.

What Is Long Term Investment

A long-term investment is the investment of assets for a period of more than one year with the aim of controlling other companies.

This means that long-term investment does require a long time, up to a year, or more to achieve high returns.

In short, company A invests massively in company B.

Then company A gets a very significant influence over company B without having a majority of the shares.

In that case, the purchase price will be referred to as a long-term investment.

Long-term investing is clearly very different from short-term investing.

In general, short-term investments only take less than 1 year to be able to withdraw funds or profits. Usually, short investments tend to be sold to other people or companies.

While long-term investment takes a long time, it can be a year or even more.

In contrast to short-term investments that will be sold, long-term investments will not usually be sold for many years.

There are even cases of long-term investments that will never sell at all.

If you decide to become a long-term investor, then you must be willing to be patient for a fairly long time.

With your patience, the potential profit that you will get is very high.

Long Term Investment Objectives

There are many goals of this long-term investment, here are some of them:

  • Earn passive income in each period, such as interest, dividends, or rental interest
  • directing special funds, for example, the cost of children's education or pension funds
  • minimize risk

Types of Long-Term Investments

There are various types of investments that are considered suitable for a long period of time. The types of investment are:

1. Gold

Gold has long been an investment instrument for a long period of time because it has proven to be very profitable.

This is because the value of gold tends to increase from year to year. If there is a decrease, then the decrease in value is not too significant.

Another advantage of this gold investment is its very high liquidity. So, you don't need to worry when you want to exchange gold for cash now.

In addition, you could say that investment in gold has minimal risk and is resistant to inflation.

Currently, there are many places for you to start investing in gold. You can invest in gold in the form of bars, gold coins, or even jewelry.

Choose according to what you want and aim for. After that, don't forget to learn the basics of investing in gold so you can follow its developments later.

2. Shares

Apart from gold, stocks can also be a long-term investment for you with large profits.

There are several advantages to investing in stocks that make it a great long-term investment:

  • You don't need to manage property or business because stocks are the “paper” investment
  • stock value can go up, even significantly over the long term
  • investing in stocks is tantamount to investing in the economy
  • You will get dividends, profits from the company
  • stocks have high liquidity
  • you can invest stocks into an international class
  • investment diversification

With these various advantages, stocks are an investment instrument that is suitable for you.

Try for beginners to learn stock investment tips first so they can understand the flow in the future.

3. Property

One product with a very high long-term investment value is "land" or "land as well as buildings".

As we know, the selling value of land tends to increase from year to year. This includes when you build a building on the land.

So don't be surprised if there are so many houses around you.

Why has the price increased? Because every year the demand for houses or land always increases. The house is one of the primary needs of humans.

It can be said, each year the value of property investment has increased by 20% each year.

However, this property investment is certainly different from investing in gold and stocks. The reason is, when you want to start a property investment, you will need a lot of capital.

Because until now the property price itself is very high, especially if you are in an urban area.

If you do not have a large fund, you can start it with a Homeowner Credit (KPR) so you can make an installment to buy it.

4. Bonds

This one investment instrument is usually very popular with entrepreneurs and investors.

The bonds themselves are debt securities submitted by borrowers to lenders. In this letter, your name is listed as well as the loan due date.

In addition, the letter also contains interest which is the loan obligation. Usually, the investment period of a bond is from 1 year to 10 years.

5. Mutual funds

Mutual funds can also be used as a long-term investment instrument. In particular, the most suitable type of mutual fund for long-term investment in stocks.

Equity mutual funds are mutual funds that allocate investor funds to the capital market, which in this context is stocks.

This investment is suitable for beginners who do not understand stocks. The reason is, there are investment managers who help choose the best stocks.

Long Term Investment Strategy

Now, after discussing what the types are, here are Glints that will provide you with a strategy so you can be successful:

1. Choose an investment that you understand

Pay attention to the details of what investment you will start later, lest you don't know at all so that later it can cause big losses.

For example, if you start investing in stocks, then understand the ins and outs of investing well.

2. Start investing as soon as possible

The longer the money is invested, the greater the profit you will get. It is one of the strategies Warren Buffet uses in stock investing.

Don't hesitate to start investing early, because this can protect your wealth assets in the future.

3. Adaptable and patient

These two strategies do sound trivial. However, long-term investment does require a lot of patience in order to reap big benefits.

Without patience, you can just stop investing in the middle and get a small profit.

A long-term investment is highly recommended for those of you who want to maintain wealth assets in the future. Without investing, maybe your money will run out quickly.

1 Response to "Long-Term Investments to Get Rich in Old Age"

  1. You wrote this post very carefully.Long Term Investment Option in Nigeria The amount of information is stunning and also a gainful article for us. Keep sharing this kind of articles, Thank you.

    ReplyDelete

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