Building a short and long-term investment strategy – 2020 Guide

Building a short and long-term investment strategy – 2020 Guide

Want to start investing for your future, but don’t know what sort of strategy might be right for you? We’ve prepared a short guide for inspiration, with an example of both short and long term strategies depending on what you think might be suitable for your lifestyle. Read on to find out more, and start your journey to becoming financially free!

Short term investment strategy

If you’ve got money stored away in the bank that you want to put back to work for yourself and grow into something more substantial, you may have started looking at different types of investments. If you’re not sure where to get started, then a good place to learn is through small stocks and shares, which you can now actually trade easily using your smartphone or tablet. Of course, some come with more risks than others, so maybe start off with a less pricey investment.

Again, if you want to keep risk to a minimum, you might also want to think about a savings account, or a cash management account. There is very little risk with these choices (with a cash management account investing in different things on your behalf), although with a savings account you might find that the interest rates are fairly low. Still, it’s better than leaving your money to collect dust when it could be accumulating interest!

Remember – Putting money into an investment is often a long-term process, regardless of the asset classes and types. Some deem a short term investment strategy as one that is made for less than three years, and so it isn’t something that will necessarily make you money right away. Only invest what you can comfortably afford to be without for a decent period of time, as you likely won’t be able to access the tied-up capital once it has been allocated.

Long term investment strategy

If you’re someone that wants to build a solid, long-term backbone to a financial portfolio, then you might want to look into something more substantial and long term, such as property investment, for example. A tactile, secure investment strategy that can flourish into something fruitful if purchased in the right area, property can also provide you with regular returns through rental payments, if letting out for buy to let purposes.

There are a range of guides out there on the property market, so it’s easy to get started with research if this sounds like something you’d be interested in, and that you have the right amount of capital to get started with. RWinvest, a popular property investment company with offices in Liverpool and Manchester, are a good example of a company with a ton of different materials, highlighting Liverpool specifically as one of the best places for investors to root themselves at the moment (due to ongoing growth and regeneration).

Tip – Diversifying – If you want to build the best investment portfolio possible, that will give you returns now and in the long term, having a diverse mix of different asset classes and strategies is the best bet. Not only does having varied investments mean that you’ll have a ton of different eventual income streams, but it also will help to protect you should one of your investments fail, or not be as promising as you once thought.