Uncategorized
/ by Phil Mattia
Adding long-term investments to your portfolio can diversify your investments, help elevate your financial goals, and ultimately pay dividends. You may think you’re too young to consider long-term investments, but it’s never too early to build your network and increase your chances of fiscal success as you compete in a global jobs market.
Here are some important opportunities to consider.
High-Yield Savings and Checking Accounts
High-yield accounts maximize interest earned and increase your rainy-day savings. Using high-yield accounts is the simplest way to earn passive investment funds, as you simply stash your cash and watch it grow over time.
However, not all banking institutions will offer a worthwhile interest rate, some only topping out at around 3 percent. So it’s important to do the legwork and put time into researching which facility offers the most satisfying interest rate — today, you can usually find rates of at least 5 percent once you do some looking around. Don’t just check banks; credit unions also offer high-yield savings and even checking accounts to make the most of every cent saved.
Stock Market Trading
While most of us know that investing in stocks is a long-term investment strategy based on the long track record of performance, it’s important to distinguish the different types of investments to select the best one for you. Not all stocks will perform the same, with some financial experts recommending index funds.
Investing in index funds requires a low start-up cost and can offer you entrance to various investment platforms with low fees. This is a good option for beginning investors who are ready to dip a toe into the stock market and aren’t sure where to start.
CDs and Treasury Bonds
Looking for a steady, foolproof, long-term investment? Then CDs and treasury bonds may be the right investment tools for you. Something to consider when you’re looking into these investments is that with the rise and fall of interest rates, it’s possible to lose income, so you need to be careful about keeping an eye on your investments as they mature.
However, these investments can be extremely lucrative once they’ve matured, and they’re federally insured, making them a high-quality choice. With today’s interest rates, these investments are poised to pay off better than ever, making them a reputable and trustworthy alternative to make for long-term investment options.
Roth IRA and Target-Date Funds
Don’t want investments you need to babysit? Target-date funds are another choice. It’s a good option for your retirement funds if you want a more hands-off approach to investing. Just search for plans that offer a low expense ratio.
Also, since saving a reasonable amount of funds using target-date plans takes time, make sure you turn to this option when you are still a ways away from retirement. Using a Roth IRA to funnel your target-date fund is a great way to amass long-term savings and secure your future.
Home Ownership and Real Estate Investments
You don’t have to be a financial expert to know that real estate is an across-the-board great choice when seeking the right long-term investments for your needs. There are some considerations to keep in mind when you decide to invest in real estate.
- Ensure you have the time and energy to be a property owner
- Know that patience pays off, as once your rentals are paid off, you can reap the financial rewards of real estate investments
- Real estate investment is a great way to earn passive income
- There are different paths to real estate investment including buying your own home, purchasing Real Estate Investment Trusts (REITs) or becoming a real estate flipper!
Additional Long-Term Investments
If you’re feeling more modern, consider cryptocurrency. Though it may be a little more risky than other investments, it’s a good possibility for long-term growth.
Another long-term investment option to keep in mind is ETFs (Exchange-Traded Funds), which are easy to purchase, offer long-term, passive, stable income, and have low overhead costs, which can mean a concrete source of income for many years to come.
Advanced Degrees and Certifications
Consider going for your MBA to hone your critical thinking skills. Adding an MBA in business or finance to your existing bachelor’s degree can maximize your chances when you’re competing in a global jobs market.
Some specializations to pursue, include marketing and economics, finance, accounting, digital marketing, project management, and business analytics, among others. This can propel you leagues ahead of other job applicants, enabling you to build your network and advance your career.
Choose a Career with Growth Opportunities
Coupled with investments, selecting a job market that offers room to grow can ensure your future is lucrative and you’ll continue to capitalize on your degree. Once you have an advanced degree, you can look at leadership positions such as management, analytics jobs, financial planning and advising, and even executive positions that cement your future as rewarding and bright.
