What are the three best long term investment options?

Different investments will be appropriate for different investors. In general, there three all-time favorite options are

  • Real estate
  • Stocks
  • Gold

    Real estate

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Buying real estate is about more than just finding a place to call home. Investing in real estate has become increasingly popular over the last 50 years and has become a common investment vehicle.Although the real estate market has plenty of opportunities for making big gains, buying and owning real estate is a lot more complicated than investing in stocks and bonds.

Types of real estate investment options:

  • Rental Properties
  • Real Estate Investment Groups
  • Real Estate Trading
  • REITs(real estate investment trust

Stocks

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Buying a shares gives you fractional ownership of the public company in which you have invested. Essentially, at least a portion of the success of your investment will be tied to the success of the company, or, more specifically, to the desire of other investors to own the same company (since in the short term it’s investors who collectively determine the share price). If the price of the stock increases, your shares become more valuable and you can sell them for more than you bought them for. If the price of the stock decreases, your shares become less valuable and you will receive less than you invested when you sell.

Additionally, some companies pay a dividend, which is essentially the act of returning a portion of the company’s profits to its stockholders. Dividends always increase the return on your investment. They may be paid either in cash or in the form of additional shares of stock.

Investing in stocks can be quite risky, so it is important to research potential purchases thoroughly in order to identify stocks with the potential to produce significant returns without too much danger of losing value. It is usually in your best interest to hold onto stocks for a year or more. The reasons for this include the fees associated with frequent buying and selling, the tax advantages gained by owning stock for at least one year, and possibly most important, the fact that, in the short-term, volatility may prevent an otherwise good investment from accruing value. Given time, a sound investment may recover from temporary dips.

Gold

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Gold is most popular as an investment, of all the precious metals. Currently, there is a lot of buzz about gold as an investment. After the global financial crisis of 2008 and the collapse of a number investment institutions, many investors are taking a greater control of their own financial future. Many have turned to buying gold due to its tangible attraction.

Options to buy gold –

  • Gold bars
  • Gold Coins
  • Exchange-traded products
  • Gold certificates
  • Derivatives, CFDs and spread betting
  • Mining companies
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