fbpx

Dentists Who Invest

What Is The Best Long Term Investment?

Graph showing the growth of various industries in the United Kingdom over time. The x-axis shows the years, and the y-axis shows the percentage of GDP each industry contributes.

Great question – and really “the best” can only be defined relative to your overall objective.⁣

For the purposes of this article we will keep things simple and talk purely about financial investments.⁣

Specifically traditional paper assets (stocks and bonds) which form the backbone of the retirement planning of most individuals.⁣

We’ll also define long term investment as over 10 years. This is the most common timeframe for retirement planning.⁣

So lets look at the vehicle that the historical data would say has delivered the highest returns.⁣

This would correspond to accelerating the date at which we can retire.⁣

If retirement is defined as the point at which we start CHOOSING to work rather than feel obligated to… then the sooner we have this the better.⁣

Hence the more we accelerate this the better.⁣

The below graph is interesting because it shows the growth in value of various asset classes since the year 1926.⁣

You can see world equities have been the asset that has spent the majority of the time at the top.⁣

Of course there is no guarantee that this will always be the case. However we certainly want the data on our side when it comes to such decisions.⁣

If you can take emotional factors out of your investing and have a long term timeframe this is useful to know.⁣

Of course there are a few more factors to consider when it comes to designing a portfolio for your retirement.⁣

But its a good place to start.⁣


*Not Financial Advice⁣

Disclaimer: The content on this blog is meant for informational purposes only and does not constitute financial advice. Readers should seek guidance from a professional financial advisor before making any investment decisions.

Have you got your NHS Pension checklist yet?

Enter your details above to receive a link you can use to download your FREE checklist

Read Blogs

Blog

The 4 Types of Money

The 4 Types of Money We all take money for granted but did you know there are actually 4 different types of money?⁣⁣How these evolved is actually linked to the

Read More »
Beach sunset, New Zealand. Sunset over ocean, colorful sky, crashing waves.
Blog

The Cost Of Doing Nothing

The Cost Of Doing Nothing It’s a common and important query.⁣⁣Let’s compare: (!)⁣⁣Imagine if there was an investment that….⁣ Is tax free Cannot be taken from you Only ever appreciates

Read More »