3 Great Suggestions for Long Term Investment Strategies
My best tips for long term investment strategies always stem from one main philosophy: Everyone has to be looking after themselves. Don’t rely on CPP (Canadian Pension Plan), OAS or any of those government-funded programs. Don’t worry about what your wealth is going to be at the end of your career and what the government is or isn’t going to give you. Have the appropriate amount of wealth built up so you can stand back and say that you don’t need the government.
Making Decisions: Pick Your Passion & Risk Tolerance
You need to decide on what you want to invest in and the two major determining factors are what your risk tolerances are and what you are passionate about. There’s so many different products out there to invest in for the long term and you have to decide who you’re going to use as an advisor and in what areas they will advise you in. You’ll find most people that use advisors are more successful in long term investing. People who say “well, I’ll do it on my own” tend to not be as successful and all the statistics have shown that.
Finding The Right Advisor For The Specific Asset Class
For each one of the products or asset classes you want to invest in, find an advisor that works with you on that specific asset class. I believe you need somebody over-compassing to help you with your whole business advisory and your business plan but you also need very specific people as well because somebody who understands mutual funds may not understand real estate or specific individual stocks (if you’re interested in investing directly into the stock market).
When you’re looking at long term investment strategies, make sure you’ve got an overall business or investment advisor that helps you make the right decisions and is able to look at the bigger picture.
Personally, I think real estate is a great investment vehicle, but it’s not for everyone. There are so many different ways of investing in real estate. You can go out and buy it directly, through mutual fund setups or investing in real estate could even be done through lending money through mortgages. There is such a wide array of investment opportunities in real estate, very similar to stocks.
Boring Investing = More Money
An interesting thought is that boring investing actually makes you more money. There’s a lot of “snake oil” investing out there and you always have to do your homework, not matter what the investment is. The investments claiming to triple your money in 3 months aren’t generally safe and sound investments. You have better odds at the racetrack!
Everyone’s long term investment strategies are going to be different because everyone is unique and has different interests, risk tolerances and backgrounds.
Don’t be afraid to ask for second opinions. There are a lot of financial advisors that get paid on a fee basis because they don’t buy and sell any specific products for their clients. Don’t hesitate to consult with a professional advisor that can give you some external guidance.
What strategies and philosophies have been most successful for you in your long-term investments? Leave a message in the comments below!
About the Author
Ken Davidson is a Chartered Accountant with BDO Canada LLP, with their Kelowna accounting firm. Ken specializes in helping Kelowna businesses that are in start-up mode, companies in Kelowna that are in their growth phase and are ready to take their revenues to the next level, and professionals to secure their financial future with solid investment advice. Ken is best known for his strategic planning advice that positions him as a trusted advisor above and beyond being a Kelowna accountant that gives typical tax planning advice. To contact Ken for a Strategic Business Review to learn how he may be able to help your Kelowna business, email him at firstname.lastname@example.org.