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Growth Investments
Learning Center • financial tips • cash reserves • insurance • savings accounts • growth investments • taxes • retirement • estate planning  |
There is a wide range of good growth investments, including U.S. stocks, international stocks, commercial real estate, residential real estate, both single family homes and apartment and condo complexes, and commodities. There are also mutual funds and various investment trusts that invest in all of these.
Good long-term investments have traditionally averaged 10% to 12% per year; therefore, your investment portfolio should average at least 10% to 12% per year or more. If you are a good stock picker, good for you. If you are not, then invest in good mutual funds that average 10% to 12% a year or more. There are over 100 of them.
Dividends paid out and long- or short-term capital gains paid out are taxable. Good growth investments in your IRA, 410-K or other qualified retirement plans are tax-deferred and, therefore, not taxed as they continue to grow. Be very aware of the tax status of your investments.
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Most of your long-term growth investments will be held for 10, 20, 30 years or longer. You want investments that will last for a lifetime or longer, that will be good for your kids and your grandchildren, too.
Major buildings and major corporations do not need to be bought and sold frequently. Good investments are good for years.
Peterson Money Books
Book: The Challenge of WEALTH, by Erlend Peterson, CFP
Managing the Joys, Responsibilities, and Opportunities
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