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Top 5 Long-Term Investments to Start in 2024

There are many reasons why to hold investments. A person or business may want to accumulate funds for project expansion. Or they may need money to repay a loan. Or they may need to acquire another company. However, long-term investments differ from short-term ones. While it’s tempting to safely trade on RoboForex or other platforms, a long-term approach is a well-tested strategy. And it makes investors benefit.

Main Takeaways About Long-Term Investments

Time

Long-term investments should be preserved for a year at least. Companies and individuals are likely to sell short-term investments. Long-term ones remain for years. In some cases, owners never sell them.

Consistency

It’s the key. You risk losing out on the dividends, gains, and compounding interests if contributions aren’t regular. At times, there may be an urge to pause. This usually happens due to unexpected expenses. But it’s the consistency that helps one keep moving towards goals.

Patience

These investments aren’t for impatient ones. Growth can be slow. And it may tempt one to choose a short-time approach instead. But if one wants to build wealth over the years (decades), this requires consistent investing.

Diversification

Long-term investments should be smart. It’s better not to put all the eggs in one basket. One has to spread all of their assets across investment industries and vehicles. This helps to hedge against losses due to inflation, shifts in trends, or downturns.

Realism

Always set real expectations. Online calculators help with that a lot. They estimate potential returns in 5, 10, 15, or more years. Of course, they show returns in case of no market issues and downturns. Yet, they help see a more realistic picture and plan strategies accordingly.

Experts Instead of Trends

No social media channel, friend, or forum discussion substitutes expert guidance.  Investors gain only from professional recommendations and advice. This helps optimize the investment mix and know where to invest today to earn tomorrow.

Is there such a thing as a risk-free investment? Surely, there’s not. Yet, with long-term investments, risks are fewer. Let’s take a look at long-term investment options that work in 2024.

Five Best Long-Term Investment Options of the Year

These approaches are disciplined and measured. They’re reliable and sustainable over a longer time. And they are far from chasing the latest fashion and fad.

Stocks and Shares

Investing in stocks and shares has many benefits. Owning stocks and shares helps to protect, build, and maximize. Owners of across-companies stocks build their savings. This ownership also protects money from taxes and inflation. Finally, this helps one to maximize their investments.

Historically, this investment type has numerous benefits. The benefit type depends on the stock/share type. Common shares bring capital growth, dividend income, liquidity, and voting privileges. Preferred shares bring reliable income streams and variety.

How long to hold before a stock becomes long-term? It becomes a long-term investment after 12 months. Everything under that is a short-term investment.

Bonds

Bonds are the number two choices only after stocks and shares. Yet, they give investors options for portfolio diversification. Also, they protect owners from market swings. Highly rated bonds pose lower risks compared to other classes of assets. Unlike many investment options, bonds provide steady incomes. And this income stream is tax-free.

There are three key benefits of investing in bonds. They are professional management, diversification, and lower first investment requirements. For bonds, interest rates are higher than saving ones. And bonds perform better when stocks decline. 

Long-term bonds are those of ten to thirty years. This is the time for them to reach their maturity.

Mutual Funds

Mutual funds are a match for long-term wealth creation. There are over 20 categories of these funds. And there are even more subcategories. This is why it’s tough to pick one. There are large and mid-cap equity ones. They feature moderate risks and sustainable growth.

Mid-cap ones offer higher risks. The average investment period lasts 7 years. The first major returns are seen in 5 years and are around 22%-24%. There’s a flexi-cap fund category generating 16% returns at worst times. But they can generate 25% returns at the best times.

Balanced advantage funds invest in debt and stock instruments and offer 16%-17% returns. ELSS mutual funds invest across all markets. A typical return in this case is from 17% to 23%.

Precious Metals

They are the safest bet for long-term investments. It’s all there: stability, value, and historical performance. The top three choices are platinum, gold, and silver. Rhodium and palladium assets are also available in bullion bars.

Each precious metal represents a different class of assets. However, the core benefits of this investment type are diversification, anti-inflation protection, and low correlation between metals.

Investing in a single precious metal type deprives one of reaping different benefits, even if the investment is impressive.

Real Estate

This is a long-term value investment. It involves property acquisition, management, and ownership. This investment aims to profit from rental income and property value increase. Property value can increase due to the location and economic development.

There are several core benefits of this investment. Owners benefit from high leverage via financing. High leverage ensures the ability to earn high returns. Investing in real estate is always about a passive cash flow.

Also, property ownership decreases mortgage insurance. This is the only investment option that can protect from inflation.

Long-term investments are about securing one’s future today. It’s important to weigh all the pros and cons and initiate the investment process. With the help of diversification and patience, it’s easier to mitigate risks and enjoy a smooth path to success.

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Andrew Gosselin CPA

Written by Andrew Gosselin CPA

Andrew Gosselin, CPA is a former senior strategy consultant for a global, multi-billion-dollar software company. He is the Senior Contributor / Editor at MoneyInc, and he holds degrees in accounting, finance, and international business from Bentley University, where he played varsity basketball and was the Lead Tutor of the accounting and finance curriculum for the Bentley Athletic Department. Andrew was named a President's Academic Scholar and was inducted into the Falcon Society, a distinction awarded by the Bentley faculty and his peers for being among those with the highest achievement and abilities in his graduating class.

Read more posts by Andrew Gosselin CPA

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