What is meant by long term savings? I am 54 and want to know an appropriate investing time frame

Jennifer | Essex| 16/01/2019 | 11

  • Online Investment Platforms
  • Funds
  • Pension

Jennifer's question in full

Hello, I really enjoy your website and find it useful and concise. My question is, what is meant by long term savings? I am 54, so what should I consider to be an appropriate time frame for any investment I make, that could supply the best results?

Anna Sofat's Response


Long term savings are anything above 10 years.

However, I’d say 15 years is what I’d class as long term, 5-10 years is medium term, and below 5 is very short term.

I wouldn’t advise anyone to invest in the markets for less than 5 years, as you may not be able to deal with the ups and downs of the market effectively.


For you...

You mention that you are 54, you may well have pension funds which might need investing for 30-40 years – days when you bought an annuity when you retire are long gone!

What is vital, is to take the emotions out of investing so you can create a strategy that caters for a cash buffer, and that will allow you to deal with emergency expenditure without being forced to sell any of your investments.

The mistake people make is when you are forced to sell early, or when the markets are low, meaning you lose out.

The two variables in investing are risk and time. With long term investing, you can generally go with a high risk approach as the ups and downs become redundant, and therefore the results are a lot better.



Just be aware...

We are not regulated to give personal financial advice - This isn’t full-fat regulated financial advice. Boring Money is a publisher and not regulated by the FCA. 

This means we can't help with specific personal circumstances or recommend specific investment products. It also basically means that if we say something daft, you have no recourse to come back and complain.

We’re only allowed to give you a steer or share an opinion or tell you the facts - That said, we promise that our answer to you is an independent unbiased perspective with no commercial gain to make. If you need regulated financial advice, you can find a good adviser via sites such as Unbiased & Vouchedfor.

Our Expert

Anna Sofat - small.jpg

Anna Sofat

Anna is an award winning Chartered & Certified Financial Planner, as well as the Founder & MD of Addidi, which advises enterprising women and their families, to plan and manage their wealth. Addidi also provides a collaborative club for women to invest in SMEs. Prior to founding Addidi, Anna was the MD at Fiona Price & Partners, the first business set up specifically to provide financial advice for women by women.

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