Are you looking for opportunities to make long-term investments like Blue World City? This is an excellent idea to achieve your goals, as there are alternatives that generate great gains for investors. In this post, we will explain what a long-term investment is, pointing out the difference with short-term investment.
Here you will also find the reasons that make it worthwhile to invest in the long term. Discover the advantages of this type of investment and what you can do with the values at the end of a certain period.
In addition, we will point out the main tips for you to make a long-term investment, with details on market research, investment diversification, analysis of variables, in addition to presenting the real estate funds, which are currently successful. Want to know more? Follow the reading!
Why invest in the long term?
Long-term investments make it possible to obtain passive income, increase pensions, in addition to financing several other projects. We list some of the following possibilities:
- construction of a property on its own land;
- residence reform;
- fundraising for business projects;
- financing a specialization in Brazil or abroad;
- investment in the children’s college;
- acquisition of a property.
If you have personal projects like these, you will need to put some knowledge of long-term investments into practice. They can increase their income and provide more economic freedom, through the income from their investments and the increase in their equity.
Short-term investments generally have a maturity of up to one or two years, unlike long-term investments, which can be planned for much longer periods. In order to invest in the short term, it is interesting to consult a specialist to verify the incidence of income tax in each application and make a comparison with the long term investments.
How to make a long-term investment?
The sooner you start investing, the more you will enjoy in a few years, and your assets will multiply more quickly. Long-term investments are ideal for generating consistent results, even though society is facing an economic crisis, as is the case today.
To make the right decision about long-term investments, you need to know the world economy well and understand its dynamics. An investment may be interesting in one period, and in another it will lose relevance, requiring an investor assessment to see if it is worth pursuing. Here are the main tips for you to invest in the long term!
Study the market
There are investments with different risk profiles, so it is initially important to define your financial objective. The first point to be analyzed is the time that will last until the amounts are redeemed. Then, you need to find safer applications that preserve your assets.
You need to minimize the risk of losing money, since it varies depending on the nature of each asset. In some cases, these risks are greater in view of the possibility of higher profitability. Therefore, it is important to obtain knowledge on the subject and, preferably, to have professionals who provide specific guidance according to your profile.
Diversifying investments is an alternative to reduce the risk of equity losses. If something unexpected happens with an investment type, you can count on the other financial investments. There are countless possibilities in the market, check below some options that you can study to check if they meet your goals:
- Agribusiness Letter of Credit (LCA);
- Investment Funds;
- Real Estate Funds (FII);
- Bank Deposit Certificate (CDB);
- Direct Treasury;
- Bill of Exchange (LC);
If possible, maintain an emergency reserve so that you do not need to redeem your long-term investments before the set date, as this will lead to the loss of part of your income. Remember that diversification is a strategy for maximizing earnings. You can invest part of your capital in fixed income and another part in variable income, always considering your profile and the characteristics of each asset.
Invest in Real Estate Funds
In the real estate business, you will find several ways to invest in real estate. In addition to the alternative of acquiring real estate, which may increase over the years, there are funds for investment in the real estate sector. The Real Estate Funds bring together a set of projects in order to provide a potential for appreciation and gain, with a risk mitigated thanks to the diversification of the fund.
Thus, the Real Estate Funds follow the same logic as other types of fund, but have the advantage of offering a monthly income, in the form of a dividend, which corresponds to a portion of the rent value of the undertakings that make up the fund. And it is for this reason that this type of fund is a good choice for those who wish to have residual income.
Understand how the time variable works
Time influences earnings differently with each investment. For this reason, it is important that you inform yourself about this before deciding to invest in a particular option. Keep in mind that the longer the money remains invested, the greater your earnings will be, but maintaining good diversification is essential to dilute the risk.
Also, be aware that a long-term investment usually spans more than 5 years, and can go up to 30 years or more if you wish. In fixed income applications, the time factor is decisive to obtain a better result, and you can invest every month to further increase profitability.
Now that you know a little more about the subject, make a financial plan to start investing. Analyze your current expenses and see if you can cut some. After all, the money you set aside today to invest will yield results that will contribute to a more comfortable life and the realization of your projects.