You’ve no doubt heard that the sooner you start investing, the more time you will have to grow your wealth. While this is true, it’s still not too late to build your nest egg, even if you are in your mid-30s. Here’s something that could help you decide on the best investment strategy for a 35-year-old
What Is the Best Long-Term Investment Strategy?
There are still many years to go before your retirement, leaving you with more than enough time to profit significantly from investment markets. Consider the following if you’re planning on long-term investing:
Invest in the Stock Market
At your age, you still have some time left to take advantage of the powerful force known as compound interest. Over time, with the right strategy in place, temporary declines in prices are unlikely to have a substantial impact on your long term financial future. However, aim to increase your chances of success by learning as much as you can about the stock market, setting your sights on long-term investments, and diversifying across different industries.
Invest in Real Estate
Homeownership may be the best investment strategy for a 35-year-old if you want to live in the house for at least five years and save money on rent each month. This helps build your net worth because the money goes toward your mortgage instead of a rent payment. Additionally, home values tend to increase given enough time. You may also want to invest into rental properties or REITs if you want to earn rental income and generate cash flow.
Maximize Your 401K
By maxing your 401K contribution and keeping the money in your retirement account, you can end up with a significant amount of cash during your retirement years. For instance, a $19,500 contribution at a 7 percent annual rate of return for 30 years will become $148,439. Moreover, working for an employer that matches your contribution will make it easier for you to reach your retirement goals.
Invest in Yourself
Perhaps the best investment strategy for a 35-year-old with little or no background in stocks and finances would be to take investment-focused courses. Knowledge is a vital part of success in investing, don’t waste away your chance to bulk up your understanding of the world’s best investment strategies.
What Is the Best Short-Term Investment Strategy?
If you’re looking for a shorter-term investment because you want a lower risk or you want to have the option of taking out your money whenever you need it, be aware that you’re likely to earn less than you would in a long-term investment. However, there are limited or even no downsides when you invest in the following:
- Savings accounts
- Money market accounts
- Cash management accounts
- Bond funds
- Certificates of deposits
All these options have the advantage of having high liquidity, often making it possible to withdraw money or buy and sell bonds at any time. However, some do have restrictions, so you have to do your homework on researching the best investment strategy for a 35-year-old like you.
Learn How to Achieve Your Financial Goals Today
If you want a better life and a brighter financial future, it’s essential for you to make sound investment decisions. Derek Moneyberg will provide you with the valuable and pragmatic tools you need to choose the best investment strategy for a 35-year-old. Watch how he has positively impacted people’s lives by helping them make smart financial decisions.