Investing With Long-Term Goals
According to Air Wallach, the long-term path is "a mindset that cultivates long-term ways of thinking, acting, and being able to create futures that are worth living."
We know the benefits of thinking long-term: It helps businesses prosper. It helps communities grow. It helps each one of us to live more fully in the present. But long-term thinking is easier said than done — after all, aren't humans mainly wired to focus on our short-term survival?
Long-path theory adapted to long-term investing
From a goals perspective we can see the world with both long-term and short-term lenses simultaneously where the long-term goals serve as guides to short-term actions.
So long as long-term goals are in place, short-term investing should contribute, at least in part, to your long-term plan. Cultivating this mindset changes how we invest short-term. It requires us to question our decisions in light of our goals.
For example, if you may elect to put money in a retirement account with a long-term expectation that it will growth by X if you contribute X over the next 10 years. Doing the exercise on paper and actively work towards realizing your goal with short-term actions can really put legs to your investment strategy.
Inject thoughtfulness and attention to details into your long-term goals
It is important to find the right balance between your short-term situation and your long-term goals. If you are clear on the longer-term goals, you will be able to make better decisions for your short-term actions.
For example, you may elect to want to actively auto-trade the stock market to take advantage of short-term opportunities but eventually want your portfolio to grow long-term.
Plotting long-term outcomes can help you create a sound strategy that will become a guide to your short-term actions. Take time to think about your goals and time horizons before you take short-term actions.
Tips to consider that will help fulfill your goals
Set Achievable Goals: You may have short-term and long-term goals. Obviously you can't ignore your short-term goals but knowing your long-term goals from inception will help guide your decisions.
Explore & Adjust: Mentally explore the impact short-term investments might have on your long-term goals and it will become a motivator. Use the long-path theory to better your chances at realizing your goals.
Manage Risk: Invest only disposable income that, it you were to lose the complete amount, would not affect your ability to met your personal obligations.
Which Stocks Should I buy? If you're not an expert in finding stocks, it's OK.... You don't need to. Trusted sources already used their extensive financial knowledge to create lists of highly rated Companies such as the S&P 500®, Nasdaq 100 and Dow 30. Use only highly liquid, highly traded securities.
Systematic Investing: Combine these Stock Universes with a professional auto-trading tool such as Smart Auto-Trading and you can now trade US elite stocks and take advantage of the best of what the market has to offer with minimum financial knowhow.
Protect your Assets: Set your Profit Target and a Stop-Loss at levels that protect your investments from selling too quickly. Market volatility can reduce profits. Use Smart Auto-Trading to manage your strategy to built a comprehensive strategy.
What are the odds? Even if there are bumps in the road, you should know that the S&P 500® has returned an average annual return of 9.42% in the last 90 years. The index embodies a positive bias, historically putting the odds of realizing a return in favor of investors.
Stocks vs. Bonds: Statistically speaking, investing in elite securities found in the S&P 500® produced better results than putting your money in bonds or money market products. It is a good list of stocks that offer a solid base to start the investment process.
No Guarantee: This is no guarantee of future returns however. If the market moves against you, you may lose part or all your investments. So it is important here to understand the risk and to instrument your strategy so it minimizes risks and maximizes profits.
Market Decides: At the end of the day, it is the market that will determine your level of success. So there is nothing really to do here but to let your strategy play out according to plan. There will be bumps in the road, but you know that if you stick to your goals, you are more likely to realize a positive outcome.
Interested in getting started?
Getting Started? If you are wondering how you can get started, you should take a look at Smart Auto-Trading. All you need is $25,000, be a US resident and found suitable to auto-trade. The application manages buying and selling elite securities automatically.
Calibrating Your Strategy: You can test the application in Simulation Mode and when you are ready, you can run your strategy in Trading Mode and take advantage of market opportunities today while contributing to your long-term goals.
Professional Advices: Last but not least, if you decide to make Smart Auto-Trading a part of your financial strategy, make sure to consult your CPA. A professional can help you understand how to work towards your goals and the impact Smart Auto-Trading will have on your finances.