If you have time on your side then I think it is well worth considering making a long-term investment plan.
This is because an investment of just $5,000 each year for 30 years would grow to be worth approximately $612,000 at the end of the period if you can earn an average return of 8% per annum.
To help you make a start on the plan, I thought I would pick out three shares which could be great options for that first $5,000 investment. They are as follows:
Afterpay Touch Group Ltd (ASX: APT)
Due to the amount of future growth that has already been built into the Afterpay Touch share price, I would only recommend this one to investors with a high tolerance for risk. While I'm confident that the Afterpay platform has the potential to recreate its Australian success in the United States and the UK, if it fails in these markets then it could be catastrophic for its share price. Investors that are interested in making an investment might want to hold tight for a few days, as the company usually provides a trading update in the middle of January.
Collins Foods Ltd (ASX: CKF)
Collins Foods is one of Australia's leading quick service restaurant operators. It owns a growing number of KFC restaurants in Australia and Europe. The latter market is the one I'm most excited about. Collins Foods is operating in areas that are under-penetrated, giving it ample room to grow a sizeable footprint over the next decade. I expect this and the rollout of the Taco Bell brand across several Australian states to underpin solid earnings and dividend growth for many years to come.
ResMed Inc. (ASX: RMD)
Another quality share to consider investing that $5,000 into is ResMed. I believe the sleep treatment focused medical device company is a great example of what a buy and hold investment option should be. Over the last 10 years the company has grown its bottom line by an average of approximately 16% per annum. I believe this level of growth could continue for the foreseeable future thanks to the expected growth of the sleep apnoea device market and the quality of its products. In the first quarter of FY 2019 the company posted a 23% increase in quarterly net income.
