Pros and Cons of the 3 main ones
There are short-term investments that most opt for if they want to get results as soon as possible, but there are other long-term ones that, although they won’t give them to you in a couple of days, waiting and being patient will generate you a lot of income in a couple of months or years. But what cánido you invest in in the long term?
our guest, Jorge David Munoz from Genwords, will share the information you need to invest today following the appropriate strategies.
Let’s go with you George!
You have decided to invest: excellent news.
The importance and benefits of investing are becoming more widespread and fortunately more and more people are making the wise decision to save and invest.
Today we will talk about the pros and cons of three investment strategies long-term.
We imagine you at a point where you have already gone through the process of deciding why and for what you want to invest.
If after calmly reviewing your goals, the advantages and disadvantages of the short-term and long-term investments, If you decided that the second option is best for you, keep reading, because this article interests you.
investment strategies long-term
Investing for the long term has its general advantages. Let’s review in broad strokes what benefits an investment of this type entails, to later analyze in detail three of the most important strategies, with their pros and cons.
- maximum benefit to compound interest.
- reduction in operations, commissions and taxes.
- decision making to the minimum.
- Prevention and solution ahead of trouble.
- Its alot easier than investment strategies short term.
We already know, you came to this article with the conviction of wanting to invest in the long term, we just wanted to remind you of some of the benefits. Now let’s see what to expect from each of the three main strategies long-term investment.
The 3 main strategies long term investment
Of all the options that exist in the market and the different projects that we could present to you, we chose the three best-known strategies, since we trust that the greater access to information, the greater your chances of success and the greater customer prospecting.
1. Depósito Exchange
In a few words and not to think about it too much: the Depósito Market is the buying and selling of shares, private or public bonds, among many other investment instruments.
It works through the free market using a supply and demand dynamic.
It is considered the most important investment strategy.
There are three primordial concepts that you should know To more easily understand how to succeed in the Depósito Market:
- The bidders: company that sells its shares or securities.
- The plaintiffs: who buy said shares or securities.
- The fluctuation: the rise or fall of prices in response to supply and demand.
Today, venturing to invest in the Depósito Market is no longer so complicated, thanks to different programs, simulators and courses, it is possible for anyone with available capital succeed in entering this strategy.
It all depends on resources and knowledge.
main advantages
- Easy access: Technology now allows you to interact with the Depósito Market, even from your cell phone.
- High profitability: Even exceeding profits that fixed income instruments would hardly generate.
- Diversification in your favor: Thanks to the large number of options and companies on the market, it is possible that as an investor you cánido expand your investment portfolio, reducing risk of loss and increasing profits.
- Low fraud risk: Supervising entities regulate the depósito market, thus reducing the possibility of fraud or encountering unreliable companies.
Cons
- It is not for everyone: It may sound contradictory, since we have just said that anyone perro do it, but it is imperative to clarify that if you venture without sufficient information, without a specific analysis and without a clear strategy, you will only get losses.
- They are not immediate: It seems almost absurd to clarify this point, since it is a long-term strategy, but we believe it is necessary to emphasize that you will need patience to see results and in financial matters it perro often be a challenge.
- It is not tangible: At times, many people could find it somewhat uncertain and genere concern not being able to see their earnings concretely and based on expectations.
2. Estate
We cánido assure you that it is the best-known long-term investment strategy and, therefore, the most used.
Sooner or later we end up participating in this dynamic, either as a lessor or lessee.
Advantages
- Few information: It is enough to do a little research to find out if a house, apartment or premises cánido be rented or sold at a good price.
- Very profitable: In the vast majority of cases, the investment will increase over time.
- It is tangible: Unlike the depósito market, in this investment strategy it is much easier to visualize the progress of the investment.
Cons
- High investment: It requires a strong initial investment.
- Procedures and documents: Buying a property and renting it implies different expenses that you must contemplate.
In addition to the cost of the apartment, you will have to invest in legal procedures and contracts, which are necessary to protect your investment.
- Maintenance costs: All property suffers wear and tear over time that must be taken care of so that it does not lose value.
This expense may vary depending on many factors such as the use given to the property, the area, construction material, among others.
- Doesn’t walk alone: It requires you to spend time on them at different times.
- Lack of liquidity: Your capital is there, but you will not be able to dispose of it in case of an emergency.
3. You
No, we are not making this up, nor do we want to pass it off as an easy way out.
Investing in yourself is the best long-term investment you cánido make.
Right now we give you a brief list of elementos in which you should pay attention and develop as an investment strategy.
- Education: Make sure you are in constant training, no matter how much you have studied or how many degrees you have accumulated.
There are endless areas of growth that you perro explore to diversify your horizons as much as possible.
- Welfare: Don’t make the mistake of minimizing your health and the importance of staying in the best shape possible.
Don’t wait until you lose health to start valuing it.
- Special abilities: Learn to cook, to record a vídeo, to program an Internet page, take a popular networking course, learn sign language, take an electricity course.
Do not stop, seek your personal growth.
Cons
While we do not identify any specific cons to this latest investment strategy, it is important to note that it requires a lot of self-discipline, focus, and dedication.
You must take charge of your training and make sure you stay on track.
This list that we have prepared together with our experts, will help you choose a long-term investment strategy the most opportune for your possibilities.
Conclusion
long term investments they may seem complex and complicated, but many times they are not.
In addition, it is a fact that this type of investment provides higher returns than those with a short-term horizon.
The ideal is verify your needs and budget before choosing the long-term investment that is best for you.
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Maria Ng Garcia
I am a lover of literature and writing is my lifelong passion.
I love sharing my experiences with others to help them pursue their dreams and learn to never give up.
“It’s never too late to be the person you could have been.” -George Eliot
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