How to Make A Long Term Investment

Sometimes picking a long term investment can be even harder than picking a short term. With a long term, you have to think about what your stock or fund will do over a long period of time.

Difficulty: Moderately Challenging

Instructions

1. Pick something stable.
   Don't invest in something that is just going to be a fad or has just came out. If you plan on putting yours into a long term stock, try to find a stock that has been established. You don't want something that will work out well for a few months then declare bankruptcy.

2. Be in it for the long haul.
   Don't put your money in one month and take it out the next. A long term investment should be something that you plan on investing in for years. That way you will continue to receive dividends and interest, then after you finally do take out your money, you should have made a hefty profit.

3. Time.
   With long term investments, time is the key. If you start putting in money in a IRA when you are in your early 20's, by the time you retire, you could have over a million dollars. And you would have only invested a fraction of that.

[iamageniuster]

on 10/23/2008 Great article. 5 stars indeed.