Get Rich In Old Age With Long Term Investment – Have you ever heard of the term long-term investment? How do you think about this type of investment? Investing is one of the activities favored by many people to date. With investment, you can maintain your wealth assets in the future, so that later you will have certain financial guarantees.
Many still do not realize the importance of investing, but not a few are already prepared to invest. There are two types of investment, namely long-term investment and short-term investment. Then what is meant by long-term investment and what are some examples of these investments?
So, to find out more clearly, here our will explain long-term investments, complete along with examples, strategies, and others.
What Is Long Term Investment
According to Investopedia, long-term investment is the investment of assets for a period of more than one year with the aim of controlling other companies. This means that long-term investment does require a long time, up to a year or more to achieve high returns.
In short, company A invests massively in company B. Then company A gets a very significant influence over company B without having a majority of the shares. In that case, the purchase price will be referred to as a long-term investment. Long-term investing is clearly very different from short-term investing.
In general, short-term investments only need less than 1 year to be able to withdraw funds or profits. Usually, short investments tend to be sold to other people or companies. While long-term investment takes a long time, it can be a year or even more. In contrast to short-term investments that will be sold, long-term investments will not usually be sold for many years.
There are even cases of long-term investments that will never sell at all. If you decide to become a long-term investor, then you must be willing to be patient for a fairly long time. With your patience, the potential profit that you will get is very high.
Long Term Investment Objectives
There are many goals of this long-term investment, here are some of them:
- Learn passive income in each period, such as interest, dividends, or rental interest
- directing special funds, for example the cost of children’s education or pension funds
- minimize risk
Types of Long-Term Investments
There are various types of investments that are considered suitable for a long period of time. The types of investment are:
Gold has long been an investment instrument for a long period of time because it has proven to be very profitable.
This is because the value of gold tends to increase from year to year. If there is a decrease, then the decrease in value is not too significant. Another advantage of this gold investment is its very high liquidity. So, you don’t need to worry when you want to exchange gold into cash now.In addition, you could say that investment in gold has minimal risk and is resistant to inflation. Currently there are many places for you to start investing in gold. You can invest in gold in the form of bars, gold coins or even jewelry. Choose according to what you want and aim for. After that, don’t forget to learn the basics of investing in gold so you can follow its developments later.
Apart from gold, stocks can also be a long-term investment for you with large profits.
According to Good Financial Cents, there are several advantages to investing in stocks that make it a great long-term investment:
- You don’t need to manage property or business because stocks are the “paper” investment
- stock value can go up, even significantly over the long term
- investing in stocks is tantamount to investing in the economy
- You will get dividends, profits from the company
- stocks have high liquidity
- you can invest in stocks into international class
- investment diversification
With these various advantages, stocks are an investment instrument that is suitable for you.
Try for beginners to learn stock investment tips first so they can understand the flow in the future.
One of the products with a very high long-term investment value is land or land as well as buildings.As we know, the selling value of land tends to increase from year to year. This includes when you build a building on the land.So, don’t be surprised when there are already a lot of houses around you.Why has the price increased? Because every increase in demand for houses or land always. The house is one of the primary needs for humans.It can be said that each year the investment value has increased by 20% each year.However, this property investment is certainly different from investing or stocks. The reason is, when you want to start property investment, it will require a lot of capital.Because until now the property price itself is very high, especially if it is in a regional area.If you don’t have large funds, you can start with a Home Owner Credit (KPR) so you can make installments to buy it.
This investment instrument is usually very helpful for entrepreneurs and investors.The bonds themselves are debt securities submitted by borrowers to lenders. In this letter your name is due as well as the loan due date.In addition, the letter also contains interest which is the loan obligation. Usually the investment period is from 1 year to 10 years.
5. Mutual funds
Mutual funds can also be used as a long-term investment instrument. In particular, the type of mutual fund that is most suitable for long-term investing is stocks. Equity mutual funds are mutual funds that allocate investor funds to the capital market, which in this context is stocks. This investment is suitable for beginners who do not understand stocks. The reason is, there are investment managers who help choose the best stocks.
Long Term Investment Strategy
Now, after discussing what the types are, here is Glints that will provide you with a strategy so you can be successful:
1. Choose an investment that you understand
Pay attention to the details of what investment you will start later, lest you don’t know at all so that later it can cause big losses. For example, if you start investing in stocks, then understand the ins and outs of investing well.
2. Start investing as soon as possible
The longer the money is invested, the greater the profit you will get. It is one of the strategies Warren Buffet uses in stock investing. Don’t hesitate to start investing early, because this can protect your wealth assets in the future.
3. Adaptable and patient
These two strategies do sound trivial. However, long-term investment does require a lot of patience in order to reap big benefits. Without patience, you can just stop investing in the middle and get a small profit.
Long-term investment is highly recommended for those of you who want to maintain wealth assets in the future. Without investing, maybe your money will run out quickly.