Time plays an important role when it comes to investing. We all have different objectives when investing and different time horizons for achieving them. Successful investing involves making choices that meet your unique needs today and your financial goals for the future.

Your personal circumstances will dictate the decisions you make along the way. There are a variety of investments available today, which will require different investment strategies honed by investors to achieve their desired results.

Typically, investing can be divided into three main types: short-term, medium-term and long-term. Before investing, it is important to know which category best suits your specific situation.

Making the decision to invest with a long-term outlook will require you to choose specific investments and adopt the right strategies based on your risk tolerance and desired returns. There are many reasons why people invest with a long-term horizon; retirement planning is the most common.

Saving for retirement requires longer-term planning. The key is to have a higher ratio of risk to conservative investments in your portfolio when you are younger, increasing the percentage to more conservative and income-generating investments as you get older.

This allows you to maximise the return on your investments in your younger years when it is prudent to take on more financial risks.

The advantage of long-term investing is found in the relationship between volatility and time.

Investments held for longer periods tend to exhibit lower volatility than those held for shorter periods. Assets with higher short-term volatility risk, such as stocks, tend to have higher returns over the long term when compared to less volatile assets such as money market instruments.

Long-term investing saves on expenses such as transaction costs from active trading. Also, certain mutual funds will defer sales charges if the shares are held for a long period.

Ideally, long-term investors should seek out companies that have a proven track record of stability and growth. This is not to say that new companies are not a viable option for long-term growth, but there is less risk involved when a business already has a proven track record.

Another good option would be a stock that has a history of paying dividends, especially one that increases dividends on a regular basis. These types of companies have proven their commitment to paying dividends and typically will continue to pay back their shareholders each quarter from their earnings.

Normally, stocks are the first investment type most people think of with regards to long-term investing. However, bonds and mutual funds are also suitable long-term investment options. It is very difficult and risky to time the market. Many investors will panic when they see reports of a falling stock market. However, staying invested in the market over the long term has historically paid off.

Although short-term fluctuations are inevitable, the stock market tends to reflect the overall growth and productivity of the economy in the long run. First-time investors should definitely focus on the long-term prospects rather than watching the daily fluctuations in the market.

If something substantially changes with the company or the market as a whole, then you should adjust accordingly. Trades should be made with your overall market strategy in mind.

It is wise to periodically review your portfolio on a quarterly or yearly basis or as specific conditions change, such as market prices, to see if your portfolio needs rebalancing. Reviewing your portfolio may also cause you to consider changing your asset allocation targets.

Rebalancing begins after the review of the portfolio, identifying any changes and how the allocation has shifted. When changes in the market cause an imbalance in your portfolio that impacts one or more asset classes, restoring the original mix will keep your plan on track, helping you to accomplish your long-term goals.

Again, such a change in the long-term strategy should only be based on significant changes in your personal situation and not the short-term fluctuations of the market.

As a general rule, it is your time in the market, and not your timing of the market that tends to give you the greatest opportunity to maximise your potential in achieving superior long-term growth. By choosing investments that complement specific goals, you can improve the odds of achieving your objectives without compromising the other priorities in your life.

The prospect of investing can become overwhelming at times. If you are unsure of how to proceed, do not hesitate to seek assistance from a licensed financial professional.