Long term or short term investment for older adults

Long term or short term investment for older adults

He decision to go ahead and invest is never an easy one. This very same decision requires that the older adult who in this case is the investor, knows exactly what he or she is getting himself in to. There are two different kinds of investment depending on how long the investment is expected to finally start giving back.

Long term investments are different from shorter investments in the sense that the long term investment is expected to start giving back at a later time and will characteristically also last longer than the short term investment. Making a long term investment could mean getting into projects such as real estate where you construct residential homes for renting. When this happens, it is obvious that the completion of the real; estate property may take up to a year before completion added to another say six months before tenants start streaming in. This therefore means that averagely, this project will be in full operational mode in two years and as such, once the units are taken for rent then this project can go on for so many years.

Short term investment on the other hand is one meant to start giving back profits soon. This kind of investment characteristically lasts depending on how well it is doing. Say for example investing in a small retail business. The growth of this kind of investment is pegged on whether or not the business does well in its early stages. If it does well then it is very possible that the profits ploughed back will be plunged into the same business in terms of stock and other components such as advertising to ensure that more clients are reached while at the same time stock is never depleted. This project can in so doing, grow and live long and expand.

The main similarity between both long and short term investments is the fact that both of them require that the investor demonstrates patience and discipline. Patience in this respect is the willingness of the investor to give the business time before rushing to demand that it starts giving profit. Discipline on the other hand is the rare skill that an older adult exercises which compels him or her not to start taking money from the investment before it is actually ready because this will then develop into a habit that will eventually translate into paralyzing the investment. Consider a 2019 medicare supplement plan G for your health care costs.