The current volatility in the financial markets is unsettling for investors. We all remember what happened in 2008. It is important to have a long-term investment strategy based on your financial goals and life plans.
Below is a list of long-term investment strategies. These strategies are the key to doing well over the long run.
Our experienced financial planning team would like to meet with you to go over these strategies, and help you to implement them. Our team understands that everyone has different needs and goals, and that they change over time. One size does not fit all. We will put you on the right track and will always be available to adjust your strategies as times change.
Call today and let’s get started. – 516-338-8700 ext. 1236
Long-Term Investment Strategies
Balanced Financial Plan – Moderation is the key. Avoid the extremes. Stay disciplined and patient. Slow and steady wins the race.
Invest in What You Understand – Businesses that provide the products and services you like and use every day are potential investment targets.
Start Investing Early – Start early. Be patient. Stay with a long-term investment strategy. Over time you will see the best returns
401K Matching Contributions – Take advantage of your employer’s 401K matching contribution plan. This is free money. So, if you can, take the maximum contribution.
Sound Cash Flow Management – Automatically invest every month during your working years, reassessing over time as needs change. When you retire, you will be glad you did.
Financial Decisions Should Not be Guided by Emotions – Separate your emotional involvement with a security from the purpose of ownership. When you are more open-minded, when thinking about investments, the more likely you are to invest in something undervalued.
Monitor Discretionary Spending –Investing requires discretionary income. Don’t confuse needs with wants. Question those things that have become the norm but may not be necessities. Following a disciplined strategy for allocating discretionary income will over time yield financial success.
Keep a Cash Reserve Separate from Investments – The biggest investment risk involves needing your money at the wrong time. Balance any funds you will need in the next three to five years between a money market account and high-quality, short term bonds. The rest of your money should be in long-term investments.
Diversify Investments – Diversifying your portfolio across asset classes, as well as within asset classes, will protect against a loss in a declining market.
Calibrate – Investing is a long-term activity. Make small infrequent adjustments to your investment strategy rather than trying to time the market.
