Investing is one of the best ways for anyone to secure their financial future and it is recommended that you do it over the long-term. In the last few years, it has become extremely tempting to go after quick returns and deviate from the long-term route, but it is smarter to invest for the long haul and stick to your game plan. These days, there are different investment options at your disposal and you have to decide what level of risk you are willing to take. If you are wondering which options to go for, Ido Fishman has recommended some of the best long-term investments in 2022 below;
Investment expert Ido Fishman says that growth stocks are quite like the Ferraris in the stock investment space. High growth and high returns on investment are their mantra and while they are usually tech firms, they do not necessarily have to be so. They don’t pay out dividends unless their growth slows down, as they plow all profits back in. They might be a bit risky, but they have been known to deliver some of the best performances over time. Make sure you carefully analyze the company before you purchase individual growth stocks and should have a high risk tolerance.
If you don’t have the time and cannot put in the effort for analyzing individual stocks, then Ido Fishman suggests that you explore a stock fund, which could be a mutual fund or an ETF. Opting for a fund that is broadly diversified, such as a Nasdaq-100 index fund, or an S&P 500 index fund will get you a number of high growth stocks. This is an excellent option for an aggressive investor, who does not want to make stock investing a full-time hobby. It is also less volatile, so it is a better option for someone who does not have a very high risk tolerance.
These are the sedans of the stock world, as they can give you solid returns, but they do not speed higher as compared to growth stocks. Ido Fishman recommends dividend stocks to investors who want a regular cash payout because these stocks usually pay a dividend. These stocks are quite popular amongst older investors as they can give a regular income. The best stocks are the ones that actually increase the dividend with time and this allows you to earn more.
One of the topmost long-term investments that people can make is in real estate. While it does require a good amount of money to get started, experts like Ido Fishman will tell you that it can give high commissions and you can earn returns when you hold an asset for an extended period of time. The reason it is considered an attractive investment option is because you can make most of the investment by borrowing money from the bank and then pay it back slowly. This form of investment may have high risks, but the rewards are equally higher, which makes it a smart choice.
Another great recommendation from Ido Fishman for people who don’t want to do much of the investing themselves is robo-advisor portfolio. In this scenario, you are asked to deposit money in a robo account and it is invested automatically based on your risk tolerance, time horizon and your goals. When you start with the robo-advisor, you will be asked to fill out a questionnaire, so they would know why you are seeking their services and then manage the entire process.
Typically, the robo-advisor chooses funds, such as ETFs, and then builds a portfolio on your behalf. They will charge a management fee for their services and can diversify your portfolio, as per your preference and risk appetite.
You can explore these best long-term investment options in 2022 in order to secure your future and achieve your financial goals.