U.S. News reached out to financial experts for advice on the best long-term investment strategies that can be beneficial throughout one's life. Here are the top 10 sound investment strategies they recommend:
1.Start early: Commence investing as early as possible to take advantage of the power of compounding.
2.Diversify far and wide: Maintain a diverse portfolio to mitigate volatility and increase the likelihood of achieving your goals.
3.Stay invested: Avoid attempting to time the market and instead, remain invested for the long term.
4.Stick to your target asset allocation framework: Have a predetermined allocation of stocks, bonds, and other assets and stay committed to it.
5.Be the Goldilocks of cash: Keep an appropriate reserve of cash and shorter-duration bonds for times of market stress, but avoid excessive cash holdings.
6.Don't forget taxes: Work with a tax-savvy financial advisor to optimize your financial plan and minimize your tax burden.
7.Keep costs low with index investing: Invest in low-cost index funds or ETFs to benefit from instant diversification and better long-term performance.
8.Diversify your income streams: Plan for retirement with a diverse mix of products, including annuities, to ensure reliable returns regardless of market conditions.
9.Revisit your strategic allocation to fixed income: Capitalize on the current rise in yields by locking them in for the long term.
10.Consider the aggravation adjusted rate of return: Evaluate potential investments not only based on traditional rates of return but also on the overall aggravation they may bring.
By following these expert-backed strategies, investors can increase their chances of achieving financial success and security in the long run.