Top 10 Long-Term Investment Techniques for (2025)

 The ten ideal long-term investing plans for 2025 are presented in this guide. There is no one investment plan that is appropriate for all investors and in all financial circumstances, which is why we are offering 10 different options.

Top 10 Long-Term Investment Techniques for (2022)

We're giving you the chance to combine several methods by covering 10 to deliver the ideal balance of liquidity, safety, income, and long-term development. To succeed as a long-term investor, you must pay attention to each of the four factors.

The top ten long-term investment strategies for 2022 are included in the table below, along with a brief overview of each strategy's key characteristics and advantages. There will be further explanations of each tactic.

Investment / Features	Minimum Investment	Stability / Risk Level	Liquidity Level	Transaction Costs	Where to Invest
Real Estate	Typically 20% of the purchase price; as low as $10 with real estate crowdfunding	High stability / moderate risk	Low	Up to 10% of property sale; 2% – 3% for real estate crowdfunding	Your local real estate market or Fundrise (real estate crowdfunding)
REITs	The cost of one REIT share	Low to moderate stability and risk	High	None	Zacks Trade, E*TRADE, TD Ameritrade
Stock Funds	ETFs, the cost of one share; mutual Funds, $1,000 and up	Low to moderate stability / moderate to high risk	High	ETFs, none; Mutual Funds, 0% – 3%	M1 Finance, Betterment, Zacks Trade, E*TRADE, and TD Ameritrade
Crypto-currencies	$2 and up	Low stability / high risk	Moderate to high	0 to 5%, depending on crypto	BlockFi, Crypto.com, Gemini, Coinbase, Robinhood
TIPS	$100	High stability / low to moderate risk	High	None	Treasury Direct
Gov’t Securities	$100	High stability / low to moderate risk	High	None	Treasury Direct
Traditional IRA	Usually none, but some trustees may require $50 or $100 to open	Very low to very high, depending on investment mix	Limited due to tax consequences	Generally, no transaction fees on common securities	M1 Finance, Betterment, Zacks Trade, E*TRADE, TD Ameritrade
Roth IRA	Usually none, but some trustees may require $50 or $100 to open	Very low to very high, depending on investment mix	High for contribution amounts; limited for investment earnings portion	Generally, no transaction fees on common securities	M1 Finance, Betterment, Zacks Trade, E*TRADE, TD Ameritrade
High-Yield Savings	$0 and up	Very high stability / very low risk	Very high	None to $25 per month	Ally Bank, Discover Bank, Capital One 360, CIT Bank, Betterment
Long-term CDs	$100 to $1,000 and up	Very stable / very low risk	Moderate, based on term of CD	None, but early withdrawal penalty equal to most interest paid	PenFed, Ally Bank, Discover Bank, Capital One 360, CIT Bank

The top 10 long-term investment plans for 2022 are shown below. Please take notice that there is no particular ranking for them. This is so that any investing technique may be used in a variety of economic and financial contexts.

• Real estate: is the best investment for predictable gains and tax advantages.
• Real Estate Investment Trusts (REITs): The Best Way to Invest in Commercial Real Estate
• Stock Funds: The Best Investment for Long-Term Growth
• Cryptocurrencies: The Best Option for Speculation
• Treasury Inflation-Protected Securities (TIPS): The Best Way to Protect Against Inflation
• Traditional IRAs: Best for Dedicated Retirement Planning
• Roth IRAs: Best for Retirement Planning + Immediate Funds Access
• High Yield Savings: Best for Liquidity and Interest Income
• Long-Term CDs: The Best Way to Lock in Interest Rates

We'll now go into more depth about each of the ten long-term investing methods. The strategies have been divided into two groups: over 5 years and between 6 and 10 years. This is so because, even with long-term investing methods, duration is important.

Top 6 Investments Over a 5-Year Period

Best for Predictable Gains + Tax Benefits: Real Estate

• Minimum Investment: Typically, 20% of the purchase price; however, real estate crowdfunding allows for as little as $10.
• Level of Stability/Risk: High stability/moderate risk
• Level of Liquidity: Transaction costs are low:
• Fees for real estate crowdfunding range from 2% to 3% of the transaction price.
• Invest in your local real estate market or on Fundraise (real estate crowdfunding)

The best way to invest. The most apparent option is to purchase a primary house. However, you may also invest in a rental property or commercial property. Consider real estate crowdfunding if you enjoy the notion of investing in particular homes but don't want to buy them directly. You may invest as little as $10 using a site like Fundrise.

Benefits. Real estate investment returns have been equivalent to those of the stock market. Residential real estate has an average return of 10.6%, while commercial real estate has average return of 9.5%. Rental property can be especially beneficial since it delivers both immediate income and long-term capital appreciation. Real estate also provides substantial tax advantages, such as depreciation expense.

Drawbacks. A considerable down payment, generally 20% of the purchase price, is required when purchasing rental real estate. It's also a pretty hands-on venture since you'll need to promote the property, locate renters, and maintain it.

REITs are the best way to diversify into commercial real estate investing

• The cost of one REIT share is the minimum investment.
• Level of Stability/Risk: Low to moderate stability and risk.
• Transaction Costs: None Liquidity Level: High
• Investing Options: Zacks Trade, E*TRADE, TD Ameritrade

The best way to invest. Many publicly traded real estate investment trusts (REITs) are listed on major stock exchanges. They can be obtained via investment brokerage businesses such as those mentioned above. The bare minimum is the cost of one REIT share.

Benefits. REITs allow you to invest in real estate without assuming physical ownership or managing the property. You can also invest in commercial real estate such as office buildings, retail space, and major residential complexes. The trust owns and maintains the properties, providing you with a diverse portfolio. REITs are a fantastic source of regular income since they are mandated to pay out at least 90% of their profits as dividends to their owners.

Drawbacks. A drop in commercial real estate rentals and property values might result from an economic slump. This might result in lower earnings and share value.

Stock Funds: Which Are the Best for Long-Term Growth?

• ETFs need a minimum investment of one share; mutual funds require $1,000 or more.
• Level of Stability/Risk: Low to moderate stability / moderate to high risk
• High transaction costs: ETFs have none; mutual funds have 0% - 3%.
• M1 Finance, Betterment, Zacks Trade, E*TRADE, and TD Ameritrade are some places to invest.

The best way to invest. Stock funds may be purchased through the top online stockbrokers, some of which are listed above. You can choose to invest in mutual funds or ETFs. Mutual funds are often actively managed portfolios with the goal of outperforming the market (though they seldom do). ETFs are most commonly used as index funds. Instead of actively trading stocks in the fund, they match the portfolio to an underlying index, such as the S&P 500.

Benefits. Stocks have returned an average of 10% each year over the last 50 years, according to the S&P 500 index. You may profit from this increase by investing in an ETF index fund linked to the S&P 500. ETFs can also be exchanged without paying any fees and for as little as the cost of one ETF share. And, because they seldom trade equities, the capital gains they earn are generally long-term, allowing you to take advantage of reduced long-term capital gains tax rates.

Drawbacks. The 10% return is an average and not consistent from year to year. You can lose 20% or 30% of your money in some years. It's entirely a long-term strategy. Also, keep in mind that mutual funds need a minimum investment of $1,000 and sometimes have load fees ranging from 1% to 3%.

Cryptocurrencies: The Best Option for Speculation

• $2 and higher as a minimum investment
• Level of Stability/Risk: Low stability / high risk
• Transaction costs range from 0 to 5%, depending on the cryptocurrency.
• Investing options include BlockFi, Crypto.com, Gemini, Coinbase, and Robinhood.

The best way to invest. The finest crypto exchanges, which we've highlighted above, are the most frequent way to invest. However, other investing providers, such as Robinhood, are also selling cryptocurrency. This will allow you to invest in cryptocurrency on the same platform where you keep other assets.

Benefits. Cryptocurrency is seen as an alternative asset that serves as a diversification from more traditional financial assets such as equities and bonds. Some individuals feel that cryptocurrency is the next chapter in money and that it will eventually replace existing currencies. However, the most significant advantage thus far has been spectacular price rises that rewarded those who bought in early and sold around the top.

Drawbacks. Crypto, unlike most other assets, is not backed by anything. That implies there will be no government support, no banks, corporations, or tangible assets. Furthermore, price fluctuations mean that you might lose a lot of money if you buy near the peak and sell after a significant decrease.

Treasury Inflation-Protected Securities (TIPS): The Best Way to Protect Against Inflation

• The minimum investment is $100.
• Level of Stability/Risk: High stability / low to moderate risk
• Transaction Costs: None 
• Liquidity Level: High
• Treasury Direct is a good place to invest.

The best way to invest. TIPS are available in five-year, ten-year, and thirty-year durations. You can invest as little as $100 using the US Treasury Department's Treasury Direct web service. There are no costs, and the securities may be redeemed on the same site.

Benefits. TIPS are issued by the Treasury Department, implying that they have the full support of the United States government. That is, they are theoretically immune to default, and you will always be reimbursed your principal as long as you hold the securities until maturity. In the meanwhile, the Treasury increases the principal value of the securities in response to changes in the Consumer Price Index. In addition to principal increases due to inflation, you collect income on the securities.

Drawbacks. TIPS pay a lower interest rate than other Treasury securities with equal terms. And, while the securities' main value will be increased for inflation, it will only equal it. You'll never beat inflation. Also, keep in mind that principal increments are taxed in the year paid.

Government-Backed Securities: The Best Investment for Principal Protection

• The minimum investment is $100.
• Level of Stability/Risk: High stability / low to moderate risk
• Transaction Costs: None 
• Liquidity Level: High
• Treasury Direct is a good place to invest.

The best way to invest. Treasury Direct allows you to invest in US government-backed securities, just like TIPS. The minimum investment is $100, and you may pick assets with maturities ranging from four weeks to 30 years. Many investing firms also sell US Treasury securities.

Benefits. If you hold your securities to maturity, the US government will guarantee the principal value. The securities likewise pay greater interest rates than TIPS, but they are not inflation-adjusted. Because the securities are issued by the US government, the interest paid on them is not subject to state income tax.

Drawbacks. The interest rates offered on US government-backed securities may not be adequate to account for inflation. Securities having periods of more than ten years are also prone to market value swings due to variations in interest rates. Rising interest rates, for example, lead the value of long-term treasuries to fall.

4 Top Investments for the Next 6 to 10 Years

Best for Dedicated Retirement Planning: Traditional IRA

• There is often no minimum investment, however, some trustees may demand $50 or $100 to create an account.
• depending on the investment mix, extremely low to very high levels of stability and risk
• Limited liquidity owing to tax ramifications
• No transaction fees are typically charged for ordinary securities.
• M1 Finance, Betterment, Zacks Trade, E*TRADE, and TD Ameritrade are places to invest.

Tips about investing. You can create an account with banks, investment brokers, and Robo-advisors—typically online. Although you may usually establish an account without any money at all, you will need to deposit money before you can start investing.

Benefits. Traditional IRA contributions are often tax deductible at the time they are made, and investment gains also grow tax-deferred in the account. You will then receive the full benefits of compounding investment returns. Withdrawals can be made starting at age 59 and 12, most likely when your tax rate is lowest.

Drawbacks. Prior to turning 59 and 12 years old, early withdrawals are subject to ordinary income tax as well as a 10% early withdrawal penalty (although there are certain exceptions). RMDs (Required Minimum Distributions) are a requirement for IRA plans starting at age 72.

Roth IRA: The Best for Retirement Planning Plus Quick Access to Your Money

• There is often no minimum investment, however, some trustees may demand $50 or $100 to create an account.
• depending on the investment mix, extremely low to very high levels of stability and risk
• High for donation amounts; restricted for part of investment earnings
• Costs of transactions Common securities often have no transaction costs.
• M1 Finance, Betterment, Zacks Trade, E*TRADE, and TD Ameritrade are places to invest.

Tips about investing. The process is the same as for regular IRAs, except you must declare that the plan is a Roth. Usually, the same trustees who provide standard IRAs also provide Roth IRAs. See Best Places to Open a Roth IRA 2022 for more information.

Benefits. Investment profits grow on a tax-deferred manner until you become 59 12 years old, at which point you may take them entirely tax-free (you must also have been participating in a Roth IRA for at least five years for tax-free withdrawal status). Contributions can be withdrawn whenever you like, without incurring regular income tax or the 10% early withdrawal penalty, as they are not tax deductible. The only retirement plan that is exempt from RMDs is a Roth IRA. That implies that you may maintain the strategy and allow it to develop for the remainder of your actual life.

Drawbacks. A Roth IRA's contributions are not tax deductible. Additionally, having the option to withdraw your payments early can stop you from amassing a sizable plan balance.

High-Yield Savings: The Best for Income from Interest

• $0 and higher as a minimum investment
• Level of Stability/Risk: Very high stability / very low risk
• Level of liquidity: very high Transaction costs: none to $25 per month
• Investing options include Ally Bank, Discover Bank, Capital One 360, CIT Bank, and Betterment.

The best way to invest. Online banks, such as those mentioned above, are the finest places to invest. They provide substantially greater interest rates than typical banks. (Betterment provides both automatic investment and high-yield savings.)

Benefits. High-yield savings accounts are excellent low-risk investments as well as short-term investments. Because the accounts are fully liquid, you may access the funds at any moment. The account will provide total principle protection as well as interest income.

Drawbacks. High-yield savings accounts are generally used for principal protection and liquidity. They have little potential for growth because the interest rates they pay are often much below the rate of inflation. Furthermore, interest rates vary and might fall as well as rise. Because most traditional brick-and-mortar banks provide annual interest rates significantly below 1%, we propose internet banks instead.

Best for Locking in Interest Rates: Long-Term CDs

• Minimum Investment: $100 to $1,000 and above
• Level of Stability/Risk: Very stable / very low risk
• Liquidity Level: Moderate, dependent on CD duration Transaction Costs: None, although there is an early withdrawal penalty equivalent to the majority of interest paid
• Where to Invest: PenFed, Ally Bank, Discover Bank, Capital One 360, CIT Bank

The best way to invest. CDs can be opened at almost every bank or credit union in the country. Some will need you to buy them in person, while many will let you buy them online. They can have periods ranging from 30 days to 10 years, although most institutions limit them to five years. The minimum investment is often $100, but it may be significantly more.

Benefits. CDs provide you the option of locking in current interest rates. This is a very useful technique if you predict interest rates will fall short. And, because the certificates have a set duration, they are an excellent method to set aside cash for a certain future purpose.

Drawbacks. CD rates are lower than the rate of inflation. There will be an early withdrawal penalty if you take funds from a CD before the stipulated period. It is typically equivalent to a percentage of the certificate's interest.

What to Consider When Investing for the Long Term

Once more, if you're a long-term investor, you should search for the investment that offers the finest balance of liquidity, safety, income, and long-term growth. You must first determine how much danger you are willing to take on with your money in order to achieve that, though.

Before putting any investing strategy into practice, take into account the following:

Your Level of Risk Tolerance

No matter how clever an investment strategy may seem, there is danger involved. The risk of losing money on any one item in your portfolio, or even on your whole portfolio as a whole, is basically what this refers to. The investments you make will be significantly influenced by your capacity for accepting that degree of risk.

Spend some time filling out the free Vanguard Investor Questionnaire if you're unsure of your level of risk tolerance. Your risk tolerance level will be presented in accordance with the responses you give. The usual range for it is conservative, somewhat conservative, moderate, aggressive, or extremely aggressive.

Your Time Horizon for Investment

Next, think about how long you want to invest. Being in your 20s and having decades till retirement allows you to be more active with your investing. This is due to the fact that you will have time to make up for any immediate losses.

However, you should be extra cautious in your investment decisions if you have a few years until retirement or if you need the money you're investing for a more pressing need (like a down payment on a home).

Investments You Plan to Make in Particular

Finally, think about the specific investment decisions you're making. Make sure the fund you're investing in aligns with your overall investment goals if you're doing so. You must conduct thorough research on each firm if you plan to invest in individual companies. Its financial standing, product offerings, the potential for present and future development, credit standing, and market position will all be examined.

FAQs on Long-Term Investments

Long-term investments: what are they?

Long-term investments are, broadly speaking, any investment instrument or strategy intended to deliver income, safety, or long-term growth for a period longer than one year.

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Compared to other investments, some are longer-term. For instance, stocks and stock funds are often anticipated to generate income and growth for a number of years, but they are also capable of doing so indefinitely. On the other hand, real estate is a very long-term investment. The anticipated outcomes might not be achieved for decades.

Is this a good moment to make long-term investments?

The ability to time the market is something that many investors would give anything to have. That would entail entering at precisely the correct moment, such as following a stock market fall and exiting at the market's height. The issue is that it's impossible to predict when the market will bottom out or peak.

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There is never a perfect time to start investing as a long-term investor. Instead, the best moment to start is always now. Because they want to hold their investments for a long time, long-term investors. Even if they occur soon after you start investing, short-term decreases don't impact as much. The key goal is to stay in the market for the long term since that is when the profits will be the highest and best.

The 10 Best Long-Term Investment Strategies for 2022, summarized

Here is our comprehensive list of the top 10 long-term investment plans for 2022 once more:

• Real estate is best for foreseeable gains and tax advantages.
• The best way to diversify into commercial real estate investing is through real estate investment trusts (REITs).
• Best for Long-Term Growth: Stock Mutual Funds
• Bitcoin: The Best Currency for Speculation
• Treasury For the most reliable inflation protection, use inflation-protected securities (TIPS).
• Traditional IRAs: Best for Committed Retirement Planning Government-Backed Securities: Best for Principal Safety
• The Best Roth IRAs for Immediate Funds and Retirement Planning Access
• Best for Liquidity with Income from Interest: High Yield Savings
• The best for securing interest rate locks are long-term CDs

If you're a serious long-term investor, you should use a variety of tactics to achieve your financial objectives. Your portfolio must offer indicators of liquidity, safety, income, and long-term development in a delicately balanced manner.

For instance, you could wish to employ long-term CDs and government-backed assets for income and stability, high-yield savings for liquidity, and real estate and stock funds for long-term growth.

Building such a portfolio should be very simple given the accessibility of investment vehicles, especially ETFs offered by online investment brokers. Just make sure to conduct more research before making any investments.