Success in Long-Term Investing

Introduction

We all know that patience is a virtue and knowing how to practice it is good in our personal and professional lives. Patience is also an integral part of maintaining your investment portfolio. One of the reasons that keep people from launching their own investment portfolio is the fear that it’s too late to start and thus, too late for it to pay off for them. Time is essential in investing, but just like life, it can’t be rushed. Once you have started, patience and time will work together to ensure that you are one step closer to achieving your financial goals every year.

The movies may show quick wins as a sign of success in investing but that’s because it’s fiction. Even a 3 hour run time cannot show you the scale of the nail-biting restraint it takes to let time work its magic on your investments. Lets explore why patience is your key to long-term investing success.

Growth takes time

It’s as simple as that – things take time to grow. Trees, kids, and your investment portfolio all need time to bloom into their full potential. The longer you can keep your money invested, the more time you give your investments to settle in and start generating a steady profit.

If the media and other people’s emotion-led investing panic is starting to get to you, then you need more than just the assurance that time is your friend. Designate five minutes every day to reading about how markets work and familiarising yourself with technical terms and investing jargon – local sources such as the KDI Blog and international sources such as Investopedia have informative articles for readers on every step of the investing ladder.

Stay interested in compound interest

During periods of economic uncertainty, it can be tempting to question your financial choices. However, keeping the bulk of your investments in place patiently, allows your portfolio the time it needs to recover from any economic hiccups and benefit from a strengthening economy. You will benefit from compounding interest in the long run when you stick to a consistent, disciplined investing strategy. Compounding interest is interest earned from the original principal plus accumulated interest, this would mean that you’re making money on your initial invested amount plus money on the interest already earned.

Also, market fluctuations are normal – no matter how much the media may play it up to seem like a shocking change. Generally, periods of fluctuation are short-term issues and keeping a long-term perspective allows your portfolio to recover stronger. If you really need to fidget a bit, then luckily there are now short-term investing options like KDI Save that can offer you short-term growth without any withdrawal fees or lock-in periods.

Strategise to your advantage

We know how hard it can be to ignore or avoid the media or people who can incite your fears and cause you to want to make changes to your portfolio. KDI Blog Article Emotion-based Investing: Trust Your Head or Your Heart? Explains the dangers of allowing emotions to lead investing decisions.

Why not establish some simple strategies to avoid making rash decisions? A disciplined investment strategy not only expects you to set clear goals, but also to develop a plan and stick to it. Set up a consistent time of day to review your investment portfolio(s). When you feel the urge to check, having that reminder on your calendar that the checking in day is only 2 days away or tomorrow can go a long way to diffuse any impatience. This allows you to avoid overthinking and second-guessing your investments because you know you’re only supposed to think about them on the designated day.

If you absolutely cannot think about it without worrying, then simplify your life by automating your investing. Dollar-Cost Averaging is an investment strategy that can help you to develop a consistent investing habit while not giving your risk-averse fears a chance to get involved. Designate a set amount of money to be invested at a predetermined time over a pre-approved duration. Discuss with your investment advisor or your spouse about an amount that will not impact your overall financial wellbeing and just let your money work hard for you. This allows you to take the emotion out of investing because you would know exactly how much is invested and on which day, but you do not have to monitor it throughout the duration that you have set.

New Investor or Seasoned, KDI Invest is Your Partner

Regardless of your current investment profile, KDI can help you achieve your financial goals. Your partner in reaching your future wealth goals is KDI Invest. This robo-advisory portfolio management tool uses A.I.-driven algorithms to provide you a diversified portfolio that also respects your risk profile.

The Oracle of Omaha, billionaire Warren Buffet’s, investing advice for new and first-time investors is to buy an index fund and wait 30 years. If this ‘set it and forget it’ strategy works wonders for your peace of mind, there is no better option than an investing tool that aligns well with your risk profile and invests in U.S.-based exchange-traded funds (ETFs). These ETFs are very liquid due to the high trading volume and the availability of rich data points for KDI Invest’s A.I. to continuously stay informed and adjust to the changing market conditions.

Visit https://digitalinvesting.com.my/ to learn more.