No matter what age you are, there is no better time to think about investing for your future than now. The earlier you get started, the better, as usually, the safest investments require a long time to fully mature for a decent pay-out. In their most basic forms, there are essentially four different kind of investment: Low risk, low yield; low risk, high yield; high risk, low yield; and high risk, high yield. We can ignore the high risk, low yield investments as they are pointless and you stand to lose far more than you could gain. Low risk, high yield is a bit more of a ‘unicorn investment’; extremely rare, and caught more by dumb luck than anything else. An example would be buying an obscure painting for hardly any money, only to discover it is a lost masterpiece worth millions. High risk, high yield has its place in your investment portfolio; however, we shall focus mainly on low risk, low yield investments here. These are your safest bet to you walking away with more than you put in; which is the aim of the game after all.
Mark Twain famously said “buy land, they’re not making it anymore”, and it makes sense. It’s simple supply and demand. Getting on the property ladder early gives you security and increases the likelihood of you paying off your mortgage before you retire. Usually, once people reach retirement age they find themselves in a family-sized home and the family all grown up and moved out. Now is the time to downsize and earn yourself a nice cash lump sum. Yes, it was money you’d already had and used as mortgage payments, but now you can use it to buy an annuity or simply give yourself an allowance and have it supplement your pension (see below for more details). Alternatively, you could buy a second property and become a private landlord, giving yourself a continued monthly income from the rent your tenants pay you.
Buying Shares In Big Businesses
Buying shares in reliable and stable businesses can make you money in the long run. Look for big names like delta stock or other well-known corporations which have the ability to ‘ride out the storm’ in times of financial uncertainty. If they’re still here after having weathered multiple dips in the market, chances are they will still be around and even have grown since your initial investment. Large companies usually pay dividends also, which you can enjoy as a little extra pocket money on top of your growing share price, or you could reinvest them directly into the company and increase the size of your initial outlay at no extra cost.
The staple of any long-term investment plan should be a good pension scheme. If your company offers a 401k or similar, then invest, and invest hard. Save as much as you can afford without putting your daily finances in jeopardy; after all, it’s free money from your employer.
This is by no means a definitive list of options for long-term investments, but it should give you something to consider and start you thinking about, and planning, your future.