Investing for long-term growth is another goal to consider when
investing your money. Growth comes from an investment's price
appreciation over time. Growth-oriented investments pay little, if any,
income, but the increase in their value can outpace inflation. Why would
someone want to invest for growth?
To save
for retirement
To save for a college education
To buy a house
To provide long-term care for his or her parents
Types of investments well-suited for long-term growth include the
following:
Common
stocks, including those of small and new companies
Growth mutual funds
Real estate
Collectibles
Because of the higher volatility of growth investments, there is
a higher reward for those who take that risk.
Now let's review why setting goals is an important part of
the investment process.
