Almost everyone’s goal in life is to ensure that they secure their future, especially financially. One of the best ways to achieve financial freedom is through long term investments. When you think and plan in the long term, increasing your financial security and meeting your financial goals becomes more feasible.
However, the challenge comes in when you’re supposed to settle on alternative investments that work for you. There are so many things you could do, but settling on one could prove a tad bit challenging. In this post, you will learn more about some of the best long-term investment ideas you could consider.
1. How about investing in real estate?
When it comes to real estate, there are various options you could go for, including rental real estate or real estate investment trusts (REITs). The former is widely explored; thus, you could consider REITs to diversify your portfolio. These REITs work pretty much like stocks. Therefore, you have to buy into a trust and take part in the ownership to accrue profits of said real estate. Most of your income will be coming from equity ownership and mortgage financing.
2. Investing in Wine
Investing in wine is a relatively new trend. The idea behind investment wine is to buy, sell and trade with other investors who have assessed the wine’s quality, age, market price and any other factors that are fundamental in determining the value of an individual bottle. Bordeaux, Burgundy, cult wines from Europe and overseas, are among the most popular wines purchased for investment. Wine investment can be a great way to grow your personal wealth. Wine investments are much like other collectables that also have an appreciating value.
3. Try out growth stocks
If you are looking for incredible ways of making quick money in the long term, growth stocks could be the way to go. These types of stocks come with the promise of high growth, translating to high investment returns. In most cases, they lean towards tech companies since they plough back their profits. Therefore, you don’t have to expect dividends until sometime in future. Thus, you will have to be careful when analyzing the company you want to invest in because these investments can be risky.
4. Invest in bond funds
Bond funds could either be in the form of ETFs or mutual funds. These funds contain various bonds from different issuers and are categorized in terms of the issuer, riskiness and duration, among other factors. Investing in bond funds will allow you to receive some annual interest, and it is a relatively safe investment compared to growth stocks. Despite any market fluctuations, bonds tend to remain relatively stable.
5. Cryptocurrency could also do the trick
Inasmuch as many people use cryptocurrency like Bitcoin to make purchases, they could be ideal long-term investment opportunities. Currency like Bitcoin is a great way to store value, and even experts believe that it could be the gold of the future. However, it would be best if you got proper insights on dealing with cryptocurrency before investing. That is why you need to enrol in the Dan Hollings course to ensure that you equip yourself with the necessary tools.
6. Stocks don’t disappoint
Stocks are ideal long-term investments because they offer many advantages. One of the advantages is that you don’t have to manage the portfolio yourself. You invest in the economy, boundaries do not limit you, and their liquidity means that you can easily buy and sell them. You can earn from dividend income and capital gains.
Sometimes if choosing any one of these long-term investments ideas could be challenging. If so, you can also go ahead and diversify your investment, covering both the safer and the riskier ones to ensure that you get the most out of them for a financially secure future.
About the Author
Patrick Watt is a content writer, writing in several areas, primarily in business growth, value creation, M&A, and finance. His other interests include content marketing and self-development. Say hi to Patrick on Twitter @patrickwattpat.