It was Warren Buffett who once said, “If you aren’t willing to own a stock for 10 years, don’t even think about it for 10 minutes.”
This quote is a testament to the long-term game that truly defines the principles of investing. It goes to show you that making any investment should always be a big-picture type of play.
Although you may be looking for quick, immediate returns, having a long-term strategy for long-term success helps to set you up for financial security and peace of mind all the way through retirement.
The last thing you want to do is outlive your savings, which is why having a viable long-term investment strategy is so important.
In this blog, we’ll be covering a few tactics and high-return investments that you should keep in mind when developing your initial gameplan.
At Tactical Wealth, we believe in creating sustainable investments for long-term success. Make the investment you deserve and get your Fixed Income Free Report to learn more.
The first long-term investment strategy that you should consider when choosing your investments goes back to Mr. Buffett’s classic line from above.
A crucial strategy was built off of his idea that you shouldn’t even waste time considering an investment unless you’re willing to commit to it for the long-term. While this isn’t to say every single investment has to be 10-years or bust, it is still important to consider that a longer investment is ultimately one way to secure the highest returns without the same risk.
The 10/10/10 Rule basically states that before you make any investment, you should ask yourself a few simple questions:
- How would I feel about this investment in 10 minutes?
- How would I feel about this investment in 10 months?
- How would I feel about this investment in 10 years?
If you think there might be any remorse whatsoever during these periods of time, then it’s likely not going to be the investment for you.
The 10/10/10 Rule also helps you narrow down investments based on how well you understand them. If after reading the terms and conditions you are lost and confused, then it’s pretty safe to say you’re not going to feel safe or happy with where you put your money.
It’s critical that you make an investment that understand and feel comfortable with — that’s why at Tactical Wealth, our fixed, high-return investments feature simple terms that are easy for anyone to understand.
Another crucial tip for long-term investing is to get started early. It’s fairly obvious to say that the sooner you start saving and/or investing, the better off you will be later in life — particularly through retirement.
Whether you start by simply contributing to a 401K or an IRA, or even just start saving excess from your monthly paycheck in a savings account, something is better than nothing.
Eventually, you can even transfer your early savings into a more lucrative high-return investment such as the Fixed Income Fund.
Balance Your Budget
Another essential long-term investment strategy is to split your budget in a few distinct ways. One portion of your budget should be allocated toward your essentials (i.e. mortgage payment, bills, utilities, food), another portion should go toward your investments, and yet another portion should go into your cash reserves.
That way, you never have to worry about pulling money from your investments or retirement savings when you have a big, unexpected expense.
While you may think that your savings and your investments should all be pooled together, you must keep in mind that lost investments can be difficult to recoup or even access when you need money immediately.
Don’t Forget To Diversify
Putting all your eggs in one basket — such as the stock market — is just about the riskiest strategy you can take.
When it comes to long-term investments for long-term success, it’s imperative that you diversify your holdings.
Consider low-risk investments like lifetime annuities, which pay out a set amount for life, and possibly mix in a few high-return investments for a somewhat shorter duration.
A diversified portfolio helps you minimize risk while also maximizing returns. And the best way to diversify your portfolio is to explore the Tactical Wealth Fixed Income Fund.
With assets that are backed by real value and real estate holdings, as well as higher interest rates than annuities and bonds, the Fixed Income Fund is the best long-term investment for peace of mind and financial security.
Learn more and download your Fixed Income Free Report today.