There’s always a fight between safety- and growth-oriented investments. Most starters opt for safety, fearing the risks of losing their hard-earned money. They choose protection over prospective, which is understandable. However, the modern safe investors are at risk of losing money due to inflation, so there might be nothing left to protect.
That’s when long-term growth-oriented options come in handy, and there are several choices that are always relevant.
Giving your money to buy stocks have lots of pros. For example, you don’t need to manage a business or real estate, as these are ‘paper’ investments. Also, in some way, you’re investing in the economy of your country, and the stronger it is, the more stable your financial situation becomes. Stocks often dramatically rise in value over the years, and many of them give you dividends, which means stable income.
Besides, you can invest is as many different companies as you want, in your country or even abroad. You can get an average of 10% return a year, including both dividends and capital income.
Mutual Funds and Exchange Traded Funds
This is a perfect option for those who are new in the world of investment. Basically, you give a certain part of your capital to a fund, and professional managers of that fund find the best stocks/bonds/etc. to invest your money in. Some funds use popular market indexes to make your investment instead of managers to look for the most profitable option.
You can choose a particular sector of the market to make a long-term investment into. For that, just search for a fund that specializes on that particular niche.
Real estate keeps one of the leading positions for investment since the World War II, as the prices rise almost every year. There’s no guarantee that this tendency will keep striving, but until now, owning a house is an incredible investment.
If you own a spare house or apartment, you can make it an investment into rental real estate, which will bring you even more income, and not only long-term, but every month as well. If you’re only planning on investing in rental real estate, make sure you balance the price you pay with the money you will get back from it.
These are the three main options suitable for those who only start their way in investment or don’t want to think about it a lot. You invest your money and check on it several times a year, that’s it. There are many more choices that need more knowledge, time, and attention.