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10 Investing Strategies to Become a Millionaire Retiree

The Motley Fool Logo By Catherine Brock of The Motley Fool | Slide 2 of 12: Buy and hold is a passive investment strategy that involves purchasing high-quality positions you intend to keep for decades. As long as those positions remain fundamentally sound, you hold onto them -- which ultimately means no panicked selling in market downturns. You'd trade when you want to improve the quality of your portfolio and when you're rebalancing, but not because the market is unstable or because some stock or sector is trending.The goal is to use time to build your wealth in a low-risk way. Long term, the stock market averages annual growth of 7% after inflation. That 7% average includes years the market was up double digits and years it was down double digits. If you let enough time pass, those market extremes always give way to positive growth. That's the justification for buy-and-hold investing.The alternative is timing the market, which is guesswork. For novice and even many expert investors, timing often results in underperforming the market.ALSO READ: Want to Retire at 62 With $2 Million? Here's How Much You'll Need to Save Each Month

1. Buy and hold

Buy and hold is a passive investment strategy that involves purchasing high-quality positions you intend to keep for decades. As long as those positions remain fundamentally sound, you hold onto them -- which ultimately means no panicked selling in market downturns. You'd trade when you want to improve the quality of your portfolio and when you're rebalancing, but not because the market is unstable or because some stock or sector is trending.

The goal is to use time to build your wealth in a low-risk way. Long term, the stock market averages annual growth of 7% after inflation. That 7% average includes years the market was up double digits and years it was down double digits. If you let enough time pass, those market extremes always give way to positive growth. That's the justification for buy-and-hold investing.

The alternative is timing the market, which is guesswork. For novice and even many expert investors, timing often results in underperforming the market.

ALSO READ: Want to Retire at 62 With $2 Million? Here's How Much You'll Need to Save Each Month

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