When it comes to an investment strategy, there are an almost endless number of paths you can take. Depending on your overall priorities, needs, and values you can follow any established formula or set your own path.<\/p>\n
One path that has numerous benefits is long-term investing. In long-term investing you put your money in an investment with the goal of leaving it there for a long time. You\u2019re not buying and selling your stocks quickly based on the whim of the market or trying to take advantage of opportunities. Instead, your money sits in the investment and grows over a long period.<\/p>\n
It\u2019s easy to get worked up about every high and low in the stock market and worry that you should be moving your money around to take advantage of each trend. When you invest long-term, you don\u2019t have to think about those things. You don\u2019t worry if stock prices drop a small amount in the short term because you\u2019re focused on the future. With a long-term investment, you\u2019re more concerned with the viability of a company\u2019s business model or its overall growth strategy, rather than whether a bump in an overseas market causes a one-day drop in value.<\/p>\n
Over the long term, portfolios tend to grow in value. If you buy and sell based on dips in the market, you could bet right that the stock will or won\u2019t increase in value again, but you could also be wrong. If you stick with your stocks that tend to increase in value and hold onto them even over small drops, chances are they\u2019ll readjust and continue to increase in value.<\/p>\n
Short-term traders, who have their investments for 365 days or fewer, pay higher taxes. Long-term capital gains taxes tend to be lower. If you invest long term, you\u2019ll likely be paying less in taxes than active traders. That\u2019s more money in your pocket, or at least in your account.<\/p>\n
Active trading can quickly allow commission fees to add up, especially if you\u2019re a day trader. As a result, you could pay thousands of dollars in commissions each year. If you invest long-term, you may pay a small commission fee a few times a year, but your gains will more than likely cancel out those costs very quickly.<\/p>\n
Long-term investments enable you to compound or reinvest your profits over time, which can give you even higher returns on your investment.<\/p>\n
When you invest short-term you have to take advantage of economic conditions and make\u2013or sell\u2013the right investments at the right time. That takes knowledge and in-depth planning.<\/p>\n
When you invest long-term, you can invest in a few companies and carry on with your life. You don\u2019t need to be constantly checking the stock market to figure out what you need to buy or sell on a daily basis, and you don\u2019t have to understand a lot about the market or have extraordinary insights. All you need is patience.<\/p>\n
There are countless strategies out there that you can use to invest your money, but the one that provides you with the least stress and requires the lowest amount of expertise is long-term investing.<\/p>\n
Talk to us to learn more about how investing can help you build your wealth.<\/p>\n","protected":false},"excerpt":{"rendered":"