Strategies for Long-Term Investments
If you've considered long-term investments in the past but
aren't really sure where you should start, you're in luck. While
there was a time when long-term investments were difficult for
someone who wasn't specifically trained to work with them,
modern investment banking allows for long-term investment
opportunities for even the least financially-aware individuals.
Below you'll find suggestions to help you choose from among the
various investment opportunities that you may encounter...
consider each type of investment opportunity carefully, and
decide which one (or which combination of opportunities) is best
suited for your needs.
Savings Accounts
One of the most basic forms of investment is the common savings
account... after all, if you continue to make deposits into your
savings over time, the interest rate will continue to grow your
savings for as long as you have the money in the account.
Many people use their savings account as their sole form of
long-term investment because of the ease and safety involved in
using the account.
The potential for growth is determined by the amount and
frequency of your deposits, and in most cases there is no
penalty for early withdrawal of for the first few withdrawals of
each month, in most cases.
Certificates of Deposit
A step up from the common savings account is the certificate of
deposit, which is a special kind of account that serves to make
the deposited money inaccessible for a period of time in
exchange for an increased interest rate.
The term that the certificate of deposit is inaccessible can
vary depending upon your initial deposit and the total yield
that you want to receive, and in most cases the certificate of
deposit can be cashed in early by paying an additional fine for
early withdrawal.
While interest rates are generally higher with a certificate of
deposit, these investments are not recommended for individuals
who want to have access to their money at all times.
Stocks and Bonds
Stocks and bonds have always been a double-edged sword when it
comes to investing... while the potential for large increases in
value is present, so is the potential for large drops in value.
Fortunes have been made or lost in a matter of hours, but these
are usually the exceptions instead of the rule.
There are several stocks that are known for their stability and
slow growth... while they aren't the large moneymakers that some
other stocks are, they also don't have the same risks of losing
it all.
Bonds, indexes, and futures are also viable investment options
that are traded on the stock market... instead of being shares
of a company, however, they are parts of financial funds,
averages of sectors or markets, and investments based upon the
potential of crops or other agricultural factors.
Investment Plans
For people who like the thought of investing but aren't sure
which investments they should make, there are a number of
investment plans that are designed to cover a specific time
period though in some cases the time period may be a bit more
abstract, such as with retirement plans.
These investment plans allow the individuals to pay a certain
amount into the plan on a regular basis... the payments are
invested by various means (depending upon the plan), and the
total amount of the plan's gains can be collected once the plan
has matured.
These plans are often benefits provided by businesses, where
they sometimes match a portion of the investment; individuals
use them much less often.
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