Long-term investment
There are many ways to approach financial markets. You can live for the moment, trying to outsmart the market and collect daily rewards. But if you have more serious goals, such as saving up for retirement, then long-term investment is probably the way to go. Long-term investment is usually defined as buying and holding assets for several years - anywhere between 5-7 to 30-40 years or even more.
Returns aren’t always spectacular - 10% per year on average over the long term can be considered good - but you’ll thank yourself later for following a disciplined approach, having a good investment plan and reviewing your strategy from time to time. On the following pages, we’ll offer you a glimpse into some aspects of becoming a successful long-term investor, while also helping you find the right broker.
How to manage your long-term investments
Diversification
Diversifying your investments is a no-brainer, but it’s hard to get it right. Here’s all you need to keep in mind, including asset types we believe are great for diversification.
Risk management
The risk of losing money looms large in investors’ minds. Broad strategies like diversification are a good start, but there are also tools for managing risk on a day-to-day level.
Brokerage costs
There’s no escaping brokerage fees if you’re a long-term investor. Or is there? Here are all the costs you may face, plus links to help you find the cheapest brokers.
Learn from professionals
Nobody is born an investor. If you’re just starting out, check out our tips on how to educate yourself and where to look for advice - including your own broker.
Research tools
Confident enough to start doing your own stock research? See what tools you can use to support your investment decisions, from charts to screeners.
Exit strategies
Long-term does not mean forever. Prudent investors should have a plan for when to sell a stock, and know how to access their money or switch brokers. Do you?
Brokers for your long-term investments
Not all brokers are equally suitable for long-term investments. Cost structure - including whether you’re charged extra for not trading often - matters a lot. So does having a product selection that includes the right assets for buy-and-hold investors. Use our selector to find the top brokers for your time horizon.
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See BrokersDive into long-term investment
Are you ready to start investing and begin your long journey toward your ultimate financial goals? Here’s some additional food for thought, including a couple of great broker choices for long-term investment, and expert guidance on when and how to take your first steps.
Online brokers for long-term investment
Whatever your investment plan is, first find a good broker where you can put it into action.
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Learn the ins and outs of starting investing early.
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