At Greer Group we understand that modern technology has allowed us to have almost anything that we desire almost as soon as we think of it. We also understand that sometimes it’s better to wait for your gratification over a long period of time. Not only do we specialize in family real estate, we also specialize in providing our clients with useful information, such as the benefits of long term investing vs. short term investing.
Volatility is one of the first aspects that you’ll want to educate yourself on when it comes to investing. Basically, volatility is the amount that prices swing over a given period of time. The more that the price of an investment swings, the higher its volatility is.
Something to take note of when it comes to long-term investmentsand volatility is that short-term volatility isn’t always a sure sign of a long-term pattern. An investment can be extremely volatile on a day-to-day basis, but it can also show signs of long-term stability and growth over an extended period of time. It’s not unusual for an investment to keep its overall purchasing ability over an extended amount of time but still fluctuate from extremes over a shorter length of time.
Time & Patience
One of the greatest things about a long-term investment is that they usually show lower volatility than investments that you retain for only a relatively short period of time. The longer that you’re willing to invest, the better chance you have of successfully withstanding poor market periods. Stocks and other highly volatile risks usually have bigger returns over long periods of time when compared to money markets and other assets.
Another advantage to investing over a longer period of time is the tax benefits you’ll likely enjoy. For example, any long-term gains that you hold for more than 12 months will be taxed at a rate lower than your actual income bracket, while any short-term gains that you make will be taxed as a regular form of income.
Something else to think about when it comes to your finances and investments is that you can save on the transaction costs from active trading. There are certain mutual funds that will allow you to avoid sales charges as long as you hold your shares for an extended period of time.
Professional Investment Help
If you’d like to see for yourself just how advantageous a long-term investment could be, the experts of Greer Group will gladly help you better understand your opportunities. As a third-generation, family owned asset managementcompany, we know a little bit about what it means to invest in something for a long period of time. Give us a call for effective strategies on long term planning and investments.