Investing for the long-term has a variety of objectives for the Fiscal Investor. The main goal is financial security. There are many different factors that are going to play into this goal. Here is a list and we can go through them all.
- 1. Financial wealth
- 2. Health
- 3. Housing
- 4. Children’s Education
The order is important as they give you priority to achieve fiscal security. Discipline is important but only possible if you know your priority. So let’s go through long-term investing explaining all the details.
Financial Wealth– Investing for the long term typically involves holding a portfolio of diversified assets for years. The goal is to accumulate wealth over time and achieve financial goals such as retirement or funding a child’s education.
Diversification and regular contributions to a long-term investment portfolio are important, as they can help investors protecting in bad times and taking advantage of market fluctuations by buying more shares during market downturns and potentially benefiting from long-term growth. See the article on compound interest to understand how time plays a huge role in financial wealth. You don’t need to be Einstein to understand the 8th Wonder of the world. Time in the market has huge benefits in a diversified portfolio. Realize that not every investment will work out!
Health– Why health? Health is also crucial because healthcare can be expensive, and it only takes one significant health event to cause substantial financial losses. Therefore, it is important to have insurance, exercise, and take measures to protect one’s health. This is important for older people but also younger people. It only takes 1 significant event to put you in debt for $50k or more. Protect your wealth and health! Exercise is important but this is not an exercise site. We just want you to protect your health to protect your wealth. Be a Fiscal Investor, think smart!
Housing– Why is housing not #1. Owning a home should be considered after building sufficient financial wealth. The goal of long-term investing revolves around diversification. A home is a significant asset and almost always grows in value over the long term. Plus, it also gives you security and a sense of pride. There are many reasons to own a home but make sure it is at the right price (interest rates, location, etc.). You are going to need to live some place. For some that might be living with your adult kids but most don’t want that. Be prepared and save in all you do! Be a smart long term Fiscal Investor and do your homework!
Children’s Education– This is last for several reasons. Yes, we want to provide for our kids. However, their college should not come at the expense of your financial security. You should start a college 529 or some college saving account if you have the means. You should not take personal loans for them to go. There are enough programs from them to get their own loans. However if you take care of the first 3, you should be able to build for their college funds. Yes, we want to be there but again you do want to spend all your money on them and have to move it because you have no choice. Be a Fiscal Investor and plan your future.
Overall, long-term investing requires discipline, patience, and a commitment to regularly contributing to a diversified portfolio over a period of years or decades. By following these principles, investors can potentially achieve their financial goals and accumulate wealth over time.
Sign up for the Fiscal Investor Giant Sequoia!
Please reach out to info@fiscalinvestor.com with any concerns you may have. We look forward to hearing from you.