Invest the Low-Risk, Long-Term Way

Are you among the many investors who prefer low-risk, long-term strategies? For so many working adults, the idea of high-risk buying and selling of securities is not part of the plan. They like to avoid risk and have a long timeline for achieving investment goals. Of course, they have their own set of favorite assets. Among the popular choices are blue-chip stocks. For more than a century, many have parked significant sums of money in blue chips, and the same is true today. Likewise, these same kinds of investors also look to rental real estate shares, bonds, balanced portfolios, and precious metals as a way to earn long-term profits.

Blue Chip Stocks

A favorite of the wealthy investing community for more than 100 years, the blue chips as a class represent the most stable, largest, and most successful corporations in the world. Owning their shares is a simple way to safely hold securities with a high probability of long-term value growth. In addition to individual stocks, there are ETFs (exchange traded funds) designed to track the blue chips. Holding either the funds or individual stocks is a simple, direct way to solidify a portfolio.

Rental Real Estate Shares

What makes rental property shares so attractive to long-term, risk-averse investors? For starters, real estate has been a high-performing asset category for hundreds of years. In the past, however, many had to buy entire houses to take part in the profits and appreciation. Nowadays, anyone can go online, browse hundreds of rentals, and select the ones that match their portfolio. Companies like Arrived have flourished under this business model. Buyers can acquire as few or as many shares as they wish but never deal with management or operational hassles. Shares offer flexibility, long term profit potential, and the chance to take part in appreciation.

Bonds

Bonds come in several varieties. Government, municipal, and corporate versions are the most popular for investors looking to diversify portfolios with conservative instruments. Most people like to include at least a few bonds in their retirement accounts. One drawback of bonds is a rather high initial cost. Even zero-coupon versions can cost upwards of $500 apiece.

Precious Metals

The gold market is holding strong and is one of the avenues you can take when considering this style of investing. Some might say that precious metals are not such a low-risk asset class, but they represent one of the best long-term options. Plus, their risk profile is low-to-moderate compared to stocks, commodities, and most other traditional choices. People seek out precious metals for various reasons, mainly because they offer a way to diversify portfolios and a long-horizon appreciation potential. There's also the alluring power of gold and silver, which have fascinated people for centuries.

Balanced Portfolios

The old standby, a balanced securities portfolio, is one of the most common assets owned by working adults. Typically, these collections of investment grade assets include a representative selection of stocks from multiple sectors, some precious metals, some bonds, and a smattering of options or commodities. The traditional balanced portfolio offers a hands-off way of building a low-risk profile to any long-term financial strategy. Most of the better brokerage companies provide an annual balancing service for free or for a nominal fee.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes