At FC360, we always aim to educate our clients on the benefits of long-term investing in the stock market. The upsides to this strategy are numerous and the downsides are essentially nonexistent. In fact, the best part about investing over a longer time horizon is you can put in less money and take on more risk. This, in turn, means you’ll receive a higher potential return on your investment when you come to collect. You often hear “time is money.” Well, in the same vein, more time=more money.
The best way to begin long-term investing is by getting started early and by contributing often. Start with as low as $100 per month. At the same time, when you’re searching for the best way to open an account, it’s important that you’re paying attention to fees and management costs. If these are too high, your portfolio will never grow to its full potential.
The Ups and Downs
When you are a long-term investor in stocks, you’re buying shares in good times and bad times. The key is keeping a cool head when the market goes down. Staying in means you can get more shares for your investment in low times and when the market goes back up, you’ll have increased returns. It’s a win-win. And because of the longer time horizon, your account has ample time to bounce back from any dips in the market, allowing you to avoid being stressed by fluctuations.
Patience is Your Friend
Due to the Law of Compounding, the earlier you start investing regularly and the longer you wait to collect, the more your portfolio will grow. Faith in this principle will help you stay patient and reject the urge to demand instant gratification. Many investors will let their emotions lead by reacting instantly to market changes. Unfortunately, this is an expensive and misguided choice. Short-term investing can mean your return ends up being nothing like you expected. It can be risky with no benefit. On the other hand, with the flexibility of a longer time horizon, you can take risks that lead to higher premiums while mitigating the negative effects.
The benefits of long-term investing are tried and true. It’s an easy, convenient and low-risk way to get serious rewards. Get started today at www.FC360.com
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We are a full service advisory firm dedicated to helping individuals connect with our network of professionals to assist with Wealth Management, Financial Planning, Health Insurance and Tax Services. For more information and answers to any of your questions, consult FC360 here. Our advisors are here anytime to provide you with a custom solution to your financial goals.