Long term investment opportunities are a great way to plan for retirement and other long term goals. When transitioning from short term savings to long term investing, it can be a bit jarring. There are safeguards you can put into place to help you succeed and conquer the transition.
Step 1: Set Your Goals
Taking the time to set your long term goals will help you find the right long term investment opportunity to meet those goals. Since you've been using short term savings, you know that goals are important to help you stay on track and set aside the right amount of money to meet those goals.
Step 2: Consult a Professional
Regardless of the type of investment you're looking for, you need to speak to a professional in that industry to make sure the opportunity you find and invest in is a good one and will get you closer to your goal, if not exceed it. If you're looking to invest in real estate, consult with both a realtor and mortgage lender. Look for properties with good investment value and consult a lender for lending options that are consistent with that property to ensure the investment is worth it.
Step 3: Understand Long Term Investing
Long term investing require diligence and a little risk. No matter how you invest for the long term, it can take a strong stomach to stay in the game. Over the long term property values, stocks, bonds and others forms of investing will go up and down over time. The key is to work with a good investor who will let you know if there is anything needing your attention and not to watch your investments daily or weekly.
Step 4: Invest Smart
Once you know where and who you want to invest with, invest in the smartest way possible. Don't take out loans (unless for real estate investing) in order to invest. You should be setting aside a set amount of monthly money to feed into your long term investing. When you set a schedule for investing, you're more likely to stick with it. Budget your investing into your monthly budget just as you would any other bill. If you don't invest first, you may never send the money.
Long term investing is essential for retirement. Many baby boomers are having to work longer and cannot rely on Social Security and other programs to provide the income they need to live out their life. Aside from retirement money, investing offers you to opportunity to make more money and fulfill the lifestyle needs you want. Take the time to be smart about your long term investment opportunities, and you'll find the right ones and attract the right people to work with to achieve your goals.
The transition from short term to long term doesn't have to be painful. Pick investments you feel confident in, and treat yourself along the way to celebrate your decision to invest long term.