How to Create a Long-Term Investment Portfolio

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July 26, 2022

While investing is often referred to as a long-term process, it can be difficult to determine which strategies are the best fit for your goals and preferences. Whether you are looking to save for retirement, grow your savings, or pay for your child’s tuition, it is crucial to have the right strategy in place. As a leading MIC, the team at PHL Financial Group knows that proper planning is often the difference between successful investing and less than ideal results. That is why we have compiled some information to help you understand how to create a long-term investment portfolio that aligns with your goals.

Learn why MICs have a place in every investment portfolio.

5 Tips to Create an Effective Long-Term Investment Portfolio

To create an effective long-term investment portfolio, consider the following tips:

1. Determine How Much You Can Safely Invest

Before investing for the long term, you will need to determine how much money you can safely invest. Start by calculating your income and then subtract your expenses and debts from this amount. Next, set up a reasonable debt management plan and emergency fund. By completing these tasks first, you will ensure that any money you put into investments can stay there without needing to be pulled out.

2. Know Your Timeframe(s)

Regardless of the goal, a crucial element of long-term investing is knowing when you will need the money. Most investment goals come with a specific or general timeframe. For example, saving for your child’s tuition often has a specific timeframe (by the time they turn 18), while saving up for retirement may start with the goal of retiring at age 65 but change by a few years as time passes.

3. Learn About the Risks

Every investment carries a level of risk, ranging from low to high. Before choosing your investment options, it is crucial to determine what level of risk you are comfortable with. From here, you can learn about your options and choose those that align with your preferences.

4. Diversify

Spreading your portfolio across a variety of assets drastically increases your chances for successful and consistent growth. From stocks and bonds to mutual funds and MICs, it is important to learn about your available options and spread your funds across as many as you feel comfortable with.

5. Regularly Review Your Strategy

While it is typically recommended to choose an investment strategy and stick with it, this does not mean that you should just “set it and forget it”. Regular reviews of your portfolio will help you see how your investments are performing, check if you are on track to reach your goals, and determine if you need to make any changes.

To learn more about our investing solutions or to discuss your investing goals, get in touch with the team at PHL Financial Group. We can be reached through our online contact form or by phone at 604-579-0844 and will be happy to answer any questions you may have regarding our services.