Benefits of Holding Stocks for the Long-Term

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There are several things to consider when you want to purchase stocks. Consider your age, risk tolerance, and investment goals, among other things.

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Having a handle on all of this can help you figure out the kind of equity portfolio you can create in order to meet your goals.

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Here's a general guide you can follow as a starting point that you can tailor to your own situation:

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Choose index funds. These are ETFs that track specific indexes, such as the S&P 500 or the Russell 1000, and trade just like stocks.

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Consider dividend-paying stocks. These types of stocks can help add value to your portfolio, especially when dividends are reinvested.

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Companies with high growth can boost your portfolio. Growth stocks tend to be associated with companies that are able to generate a significantly high revenue at a faster rate than others.

Keep in mind, though, that this degree of growth comes with a higher level of risk, so you'll have to be a little savvier than novice investors if you want to go this route.

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As always, it's a good idea to consult with a financial professional especially if you're new to the the investment world.

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