Long Term Investment Options

By admin, May 18, 2018

Interested in investing for the long term? Can’t figure out a suitable option? Your primary aim is to get a decent return on your investments. Risks do exist in the financial world, which you can mitigate by diversifying your portfolio and combing the available options together.

The time period associated with long term investments is around 7 years or greater. Generally, you are on the lookout for return rates averaging to 8 % to 8.5%. High risks are expected for some of the options, but are usually acceptable because the returns are also worthy.

Before proceeding ahead, educate yourself on the various options available, and accordingly make a decision. Let’s walk you through the best choices for long term investments in Australia.

Savings Account

A savings account offers an interest rate of only 1% to 3%, but is still utilised by many Australians, simply because it is risk-free. You deposit a certain amount from your income monthly, over which interest is compounded.
You can open up a savings account with any bank of your choice, and can manage it through the offered app.

Bonds

Bonds are type of a loan, issued by the government and companies in an attempt to raise money. Investors lend an amount to the issuer of the bond for a certain time period during which they receive a return regularly. The return rates associated with bonds are higher than savings accounts.

Gold

Gold is a popular long term investment option, especially for those looking to diversify their portfolios. Gold always tends to maintain its values and cannot default unlike fiat currencies, which makes it a suitable investment option when economic disturbances and fluctuations are prevalent in the financial market. In such scenarios, gold responds differently compared to other assets, which helps you mitigate risks.

Investment advisors at goldbullionaustralia.com.au suggest that gold should ideally take up around 10% or more of your investment portfolio, but there can be variations. Once the value increases and you start realising returns, you can sell gold through simple processes to generate a profit.

Shares

If you invest in shares, it means you are a partial owner of the company. Your wealth grows when share prices increase and when you’re paid dividends. Shares are a risky investment option, and so it can be hard to figure out the ones that would maximise returns.

Property

Buying and selling property is a common investment strategy in Australia. You get money from the profits earned on the sale or as a regular income, if you rent out the unit or land. Property investment has become riskier these days, but you can address them through numerous ways.

Term Deposits

Terms deposits are god way to accomplish your long term saving goals. You put your money into a term deposit, which is then tied down for a certain period. Choose any suitable period from between 1 year and 5 years, keeping in mind that you won’t be able to make any withdrawals during this time. You earn an interest during this period, and aren’t allowed to make any withdrawals.

So which of these options have you already invested in? Do let us know what works best for you.