The problem with short term investments, and indeed short term thinking, has been well illustrated with the recent problems experienced by the stock markets and across the financial world. As the value of some shares tumble and investors panic, those sitting on longer term investments can keep their calm, knowing that their financial futures aren’t necessarily affected by these wild fluctuations.

Long term in investment speak is generally considered to mean somewhere in the region of 10 years or more and over this sort of period dramatic crashes, like that which occurred on Black Monday, tend to iron out and become less significant as markets correct themselves.

If you are keen to become an investor you should include some long term investments in your portfolio.

Over the long term equities (an equity investment generally as refers to the buying and holding of shares of stock available on a stock market by individuals and firms in anticipation of income from dividends and capital gains, as the value of the stock rises), above all, tend to outperform other asset classes, although there may be some heart-stopping moments of volatility along the way. Try to take these short term ups and downs in your stride, they are part of the process and the reason that you have chosen to invest in the long term in the first place.

All of the banks and building societies in the UK offer long term investment accounts with guaranteed interest rates for investors who are happy to lock their money away for a prescribed period. In general the longer you invest for, and the less access that you have to the capital, the higher the interest rate offered. This is a very popular way of investing and the details of the myriad packages available can be explained better elsewhere.

What to invest in?

As part of a diverse and effective portfolio the canny investor needs to think outside the box and take a look at some investment plans that are not supplied by the high street banks. There are many options for the long term investor and some of these are covered in these pages.

Forestry is generally considered to be a secure and profitable long term investment. It is necessarily a long term investment by its very nature. Trees take time to grow. One of the biggest advantages of forestry investment is that, barring major environmental catastrophes, the longer the trees grow the bigger they get and consequently the more they’re worth. Ensuring that your forestry investment is managed in a sustainable way also gives you the peace of mind of being an ethical investment. Not only are you making money, you are investing in something that is helping in the battle against climate change.

Investing in high quality consumer products such as fine wines or malt whisky is also generally considered to be a sound long term investment. As long as you choose well, your investment should appreciate over time and, in general, the longer you leave it the better it will perform, regardless of what is happening in the financial pages of your newspaper.

Whatever way you go about it, it is important that you consider long term investments as part of your overall strategy rather than putting all your eggs into a short term basket where they could be dashed in the space of a day as the next big scare rocks the markets.

Alternative investments

Overseas property

High growth investments

Ethical investments

African investment

High return investments

Green investments

Brazil property

High yield investments

Classic car investments

Caribbean property

Offshore investments

Diamond investment

Cyprus property

Retirement investments

Gold investment

Florida property

Short term investments

Hotel room investment

Turkey property

High growth investments

Student accommodation

 

 

Whisky investment

 

 

Wine investment