The city of Rochester in Monroe County west of New York gave birth to imaging and photocopying companies Kodak and Xerox, respectively. As a result, the said place had attained enough fame that some of its residents have since put up several other enterprises throughout the years. As a Rochester, NY resident yourself, you might have gotten inspired by those two global corporations that you want to establish a business as well.
However, the original owners of both Kodak and Xerox didn’t get to where they are now by making short-term investments that lasted for about a year at most. So, you might want to apply these four long-term investment strategies for you to reach the levels of success they’ve achieved more easily:
1. Invest your money as early as possible
Investment is better done as early in life as possible. You should research on the best investment schemes for you and start from this Rochester site for advice. You might think that investments are for adults in their thirties or forties with families of their own; however, pursuing a long-term investment such as stocks, real estate, bonds in your early twenties will benefit you in the long run. Here are some of the reasons why you should invest early:
Starting early will allow you to end with more money
Time is of the essence in long-term investing. So if you want to pursue it, do so while you’re still in your 20’s and let yourself earn more out of it than if you put it off until you’re a thirty-something.
You can learn from your mistakes early
No successful investor ever started with a perfect mastery of long-term investments. As a newbie investor, you’ll have your share of investment mistakes from time to time. For instance, you might have bought stocks from a company that only lasted for a couple of years after authorities found out about its illegal business practices. Or you invested in a piece of property in an area that eventually turned out to be prone to perennial flooding.
If you make these mistakes in your twenties, it would be easier to bounce back than if you had made these mishaps in your late thirties or forties.
You can retire to a pleasant and comfortable life
If you start pursuing your desired long-term investment option while you’re still young and healthy, you can have a worry-free retirement and enjoy the remaining years of your life in luxury.
2. Diversify your portfolio
You might initially think that deciding to invest only in real estate, for example, can guarantee you enough income to make you want to quit your job and start a business of your own in Rochester, New York. It’s a wiser move for you though to partake in more than one long-term investment option for the following reasons:
Pursue different investment options
Letting yourself become stuck in only one long-term investment will make you stagnate as an investor. Choose different investment options so that you can see which one works out for you. You can try various strategies and implementations.
Potentially earn a lot from various options
Investing in a single long-term investment choice might be more convenient for you. But you shouldn’t settle for only one income-generating option if you could earn more with multiple long-term investments.
Alleviates potential risk
If you only pursued a single long-term investment, you have no safeguards in place in case it doesn’t work out well for you. But if you spread out your risk across the several long-term options in your portfolio, you can still earn an income even if some of them might eventually turn out to be bad investments.
3. Invest in tech stocks
According to a 2017 report, millennials aged 20 to 30 buy shares in major tech companies like Apple, Facebook, and Netflix – to name a few – as part of their long-term investing strategy. After all, putting some of their hard-earned money in a tech company that has firmly established itself into public consciousness can guarantee them a high ROI or return on investment in the long run. Also, tech shares are a safe long-term investment option since millennial investors already know most of the major companies that offer those.
However, if you want to stray far from what might seem to you like an over saturated investors’ pool, you can also consider buying shares in smaller tech companies. Since you’re a Rochester, NY resident, you don’t need to go too far for that as you can consider investing in any of the various tech startups headquartered there such as:
Established only last 2017, Tokenize Inc. has created a metal ring with fingerprint and proximity sensors in it called Token which might eventually serve as a handy replacement for one’s credit card, computer login credentials, and house or even car keys.
A relatively more established tech startup compared to the previously mentioned ones above, OLEDWorks specializes in manufacturing affordable organic LED (or light-emitting diode) screens that are more energy-efficient and flexible than their traditional counterparts.
4. Set up an emergency fund reserve in case things go south for you
Even if you’ve already ensured to start investing your money early and diversifying your portfolio along the way, you can never tell when a financial emergency might occur to you. You wouldn’t want to sell any of your long-term investments to shoulder any of these unexpected expenses that might come your way as you can’t afford to go back to square one, especially if you’re already in your fifth or tenth year as an investor:
- The business that you’ve put up in Rochester, NY might go bankrupt
- Any of your loved ones might succumb to an injury that would need extensive medical treatment
- Your house in Rochester might suddenly catch fire
- Any other unforeseen situations that can cost you thousands of dollars
So open an account in your bank separate from the one that you use for the money that you make as an investor, and designate it as a repository for your rainy day funds or an insurance for your family.
Residents of Rochester, NY like you can now more easily secure enough capital for any business that they want to put up after the state government had given the entire Monroe County a $500 million grant back in 2015 to fund any potential ventures there. However, you shouldn’t rely on New York State funding alone, since you should be making your own fortune in your own terms.