One common question many prospective investors have before beginning their investment journey is ‘what investment strategy is the secret to future financial wealth?’. While many resources can help investors make strategic decisions, there is no one right answer or strategy that can guarantee future wealth.
Economic conditions, supply and demand, and political circumstances are some factors that can cause the market to fluctuate, making it challenging for investors to pinpoint a successful strategy. However, this doesn’t mean that investors don’t stand a chance of making a profit.
In this article, we’ll explore four common investment strategies to help you successfully navigate the market and sustain future wealth.
Staying consistent
Once you’ve determined your investment strategy and financial goals, it’s important to stick with them and remain consistent. No one can determine the exact way the market will fluctuate, and there will be periods when your investment values may dip.
Nonetheless, if you invest consistently, regardless of market conditions, you still contribute toward building lifelong wealth. Practising this strategy also keeps you from worrying about the perfect time to invest.
Don’t underestimate the power of compound interest
Another considerable benefit of consistent investment is compound interest. This refers to the interest a person receives on not just their initial investment but the interest accumulated from that investment. Investment strategies crafted by professionals are typically made for the long term, which means the potential for compound interest is highly promising. Depending on the size of your investment and the frequency, investors could stand to double or triple their return over ten years.
Asset diversification
Many investors make the mistake of keeping their investments the same or within the same class. This is especially common when they’ve begun to notice a return, fostering a sense of security. While it may seem like the safe thing to do, diversifying your portfolio increases your chances of having an asset that delivers generous returns over the long term.
There is no right or wrong way to spread your portfolio; it will ultimately come down to your investment strategy and style. For instance, if you prefer to invest in ethical stocks, be sure to scatter your investments across large, medium and small company stocks.
Consider professional advice
Long-term investment can be an overwhelming and challenging task to get up and running on your own, particularly if you’re looking to venture into more complicated investment strategies. For instance, investors considering a self-managed super fund (SMSF) will need to consider several legal and tax considerations and have an established SMSF investment strategy before proceeding. In this case, seeking professional and industry-leading advice may be ideal.
Having an experienced financial advisor can make all the difference in ensuring your SMSF investment strategy generates high returns and meets your financial goals. They can also help you set up your SMSF seamlessly, monitor its progress and make necessary adjustments.
Treysta Wealth — trusted advice for long-term investment strategies
Treysta Wealth has been in business for more than 30 years, helping clients achieve their financial goals and find financial confidence. We believe that no two people have the same money story, so we invest the time to get to know our clients, their values and backgrounds, before building a financial plan that not only helps them reach their goals but maintains their current lifestyle.
The professional and experienced team at Treysta Wealth can help you implement solid investment strategies, monitor your risk levels and make recommendations to ensure you stay on track. If you would like more information about our investment planning services, contact us today.
Disclaimer: any information we share is general in nature and does not take into account your personal situation. You should consider if the information is appropriate for your needs and, where appropriate, seek professional advice.
