Jul 052011
 

I found these tips in a Financial Post article – they’re the best strategies for investing money not to get rich quick, but to enjoy long-term financial growth.

“The key elements in wealth preservation are robust diversification, copious patience, and strong value orientation,” writes Michael Nairne in “Wealthy Need Financial Discipline, Too” in the Financial Post. “They’re simple [strategies for investing money] to grasp, but hard to practice.”

You don’t need to be a financial guru to invest money for long-term growth – nor do you need to hire a financial advisor! To save for the future, you need only scare up some financial discipline (which is what these tips are all about). And, you need to read books like The Little Book That Still Beats the Market – they’re bestselling investment books for a reason.

Best Strategies for Investing Money for Long-Term Growth

“Based on the [Barclays Wealth survey of 2,000 successful investors], there are four top strategies high-net-worth individuals use to improve their self-control…” writes Nairne.

Lack of self-control will foil even the smartest investor’s plans for long-term financial growth! The study found that men are more impulsive in their investing, and more likely to bail out during market lows. Women are more stressed about financial matters than men, and say they need more financial discipline.

Here we go – tips for financial discipline (which are the best investment strategies for long-term growth)…

Set deadlines for investing money

I’m one of the lucky women whose husband does all the investing (and I may live to regret it!). Before we got married, I invested in lightweight, low risk money markets and mutual funds. It’s not that I’m afraid of investing money, it’s that I just didn’t know the best strategy for investing money for long-term growth. So, I put all my serious investment decisions off…and now my husband takes care of it. It’s not an ideal situation, to be sure.

Do you procrastinate on your investment decisions? Set a “drop dead” date for investing your money, perhaps in two months from now. Use the time to talk to financial mentors, do some research, and learn what other people think the best strategies for growth are.

By the way, knowing how to diversify your investment portfolio is one of the best investment strategies.

Allow a cooling-off period for major decisions

“By holding back a day or two from implementing a significant financial decision, an investor gets a chance to step back and take a thoughtful second look with less emotion,” writes Nairne. “This is a particularly important strategy when acquiring liquid investments such as real estate or private equity.”

The downside of holding off for a day or two is that the market can change on a dime! I get paid in US dollars – and I’m Canadian – so I’m always struggling with when to change my money from US to Canadian. A day can make a big difference, which makes it hard for me to sleep on it. But, sleeping on it is one of the best strategies for long-term growth.

Talk to financial gurus – not necessarily Suze Orman or Dave Ramsey

A “financial guru” doesn’t have to be a famous money expert. High-net-worth individuals have teams of professional advisors, of course…but they’re not necessarily rich, famous financial investors. Yes, you should probably get financial advice before you decide on long-term investments. Have you heard of investment clubs? I describe them in 6 Ways to Increase Your Financial IQ and Attract More Money; they’re a great way to get sound financial advice for next to nothing.

Set your goals and guidelines, and stick to them

What are your financial goals? How will you achieve them? The best strategy for investing money for long-term growth is to be disciplined about your goals and methods of achieving them.

“It’s hard to accumulate wealth,” writes Nairne. “Without discipline, it’s also hard to keep it. Strategies that improve self-control are vital for any investor, high-net-worth or other.”

If you’re one of those women who gets stressed at the thought of investing money, read Investment Tips for Women – How to Take Charge of Your Money.

What do you think of these strategies for investing money for long-term growth (not to get rich quick!)?

About Me

quips tips love relationshipsI'm glad you're here! My name is Laurie Pawlik-Kienlen; my husband Bruce and I live in Vancouver, BC with our critters. We can't have kids, and are learning to accept whatever life brings - both good and bad. I have an MSW (Master of Social Work) from UBC, and degrees in Education and Psychology. I hope you say hello below - I can't give relationship advice, but writing can bring you clarity and insight.

  2 Responses to “Best Strategies for Investing Money for Long-Term Growth”

  1. Hi Sally,

    Good question!

    It’s not that I don’t trust my husband to invest our money wisely for long-term growth — it’s quite the opposite, in fact. If something happens to him, I’d have no idea where to start looking for our investment portfolio, much less take it over. I think it’s foolish for women to let their husbands completely control the finances and investments….and yet I’m one of those wives.

    So that’s why I said I may live to regret it.

  2. Why do you say you’ll live to regret it that your husband invests your money? My husband invests our money and I have total faith in him. If you don’t trust him, you shouldn’t give him the power to invest your money for short or long-term growth.

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