9 Best Long-Term Investments [NEW Strategies for 2021]

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No one has a secret formula to help you make more money in investing.

However, there is an investing strategy that can help you earn money.

It’s called long-term investing.

In fact, long-term investing radically increases your chances of earning higher returns.

If you had invested your money between January 1971 and May 2020, you would see the following chances of making a profit:

Amount of Time Invested Chance of Making a Profit

65 days

65.09%

365 days

71.83%

3,650+ days

93.91%

Data Source: Nutmeg

As you can see, the more time you spend invested in the stock market, the higher the chances that you will see a profit. 

This is the point where you’ll need to be:

  • Patient
  • Consistent
  • Focused on the long-term

Ultimately, whether you’re successful in the stock market depends on the following:

Time in the market, not timing the market.

So, if you want to learn more about the best long-term investments and how you can make money over the long run, keep reading.

Sneak Peek: Top 3 Long-Term Investments


Investing in the Stock Market 👇

Investing in Real Estate 👇

Investing in Cryptocurrency 👇

One way to make money is to focus on the bigger picture. 

Long-term thinking can help you avoid making rash (and emotional) decisions that often come in the heat of the moment. 

That’s why long-term investing is typically a proven strategy.

Before we dive into the best long-term investments for beginners, let’s first take a look at the long-term investment definition.

While so many want quick fixes to their money issues, long-term investments can help you not only meet your financial goals but can also help you enter retirement with a certain sense of security.

The Best Long-Term Investments

Remember that the earlier you start investing, the higher your chances are for higher long-term investment returns.

Let’s dive right in.

best long term investment - index funds

1. Index Funds


One of the best long-term investments is by far is 
investing in index funds.

Not all index funds are created equal, however.

Specifically, there are different index funds for different purposes, as I’ll illustrate below:

Index Fund Purpose

S&P 500

500 best American companies (stable, long-term growth)

Russell 3000

Top 3000 publicly traded companies in the U.S. Accounts for about 98% of all U.S. stocks

Russell 2000

2000 smaller companies (which are all included in the Russell 3000)

MSCI Emerging Markets

Large and middle-sized companies from 27 emerging nations

In total, there are about 5,000 different types of indices in just the U.S. alone. 

Here’s why it’s typically a good long-term investment to put your money into an index fund – like the S&P 500 for example:

  • Low risk
  • Low fees
  • Steady growth

Let’s take a closer look at the performance of the S&P 500 index fund (my favorite, if you haven’t noticed already) over the past roughly 100 years:

$100 in the sp500 1926-2021

Source: Official Data

This chart illustrates the return of a $100 investment from 1926 (the inception of the S&P 500) to 2021.

Over this timeframe, $100 would have grown at a 10.22% per year – which would mean your $100 in 1926 would now be worth a staggering $1,034,433.90 in 2021!!

Talk about one of the best long-term investments.

The S&P 500, which is one of the oldest indices, started in 1926 and has experienced many ups and downs over the past several decades.

However, there is a strong positive trend – if you are a long-term investor.

Year Invested Your Return

1926-2021

1,034,333.90%

1987-2021

7,667.47%

Of course, that doesn’t mean you should expect a 1,000% or more return every year.

Time in the market is the key ingredient.

And that’s why one of the best long-term investments is investing in low-cost index funds.

How?

One of the easiest ways is to start investing with apps like Acorns or M1 Finance.

The investing app Acorns can be a perfect fit for beginner investors who don’t yet have $100’s or $1,000’s to start.

It took me about 5 minutes to set up my Acorns account.

All it takes is $5 to start investing – not $1,000’s.

If you’re a little savvier with investing and can afford to invest several $100 or $1,000’s, then you may want to check out the investing app M1 Finance.

M1 Finance is super easy to set up, the interface is intuitive and although M1 Finance creates an investment portfolio for your needs (they call this “the pie”), you still have space to customize your investments.

You’ll need about $100 to start investing if you’re opening an individual account and you’ll need $500 to start, if you’re opening an IRA.

Guys and gals, if you haven’t yet, start investing now.

Your bank accounts will thank me later.

best long term investment - your education

2. Your Education


There is no way that you can go wrong by investing in yourself.

In fact, I would almost argue that investing in yourself is the best long-term investment out of all these options.

You see the highest ROI when you invest in yourself.

I’m not necessarily saying to pack up your bags, take out a $300,000 student loan and go to college in an effort to invest in yourself.

But what I am saying is that next time you have the following options:

Option 1 Option 2

$15 lunch

$15 book

$50 pizza night

$50 training course

$500 watch

$500 conference

…You have the power to decide what you consume.

A high-quality life derives from high-quality consumption.

The same also is true if you consume poor quality.

I’ve listed some ways below that detail how you can invest in yourself for minimum cost but maximum outcome:

  • Books
  • Seminars
  • Workshops
  • Your family
  • Your health
  • A life coach
  • Your network
  • An online course

…And the list goes on.

The good news is that you can start investing in yourself today. 

If you are a beginner and are looking to transform your mindset, your life, your future, your potential, you may want to start by reading my latest book, How to Get Rich From Nothing.

Getting rich doesn’t just refer to money.

Getting rich also refers to the following:

  • Growing mentally
  • Growing your network
  • Growing your confidence
  • Growing your financial literacy
  • Growing your financial competence

Dare to invest in yourself.

Remember that the quality of your thoughts is determined by the quality of your life.

best long term investment - cryptocurrency

3. Cryptocurrency


If you’re already invested in the stock market (and are fed up about hearing how you should invest in stocks), then you may want to consider using your money for another, more volatile long-term investment. 

This time, I’m talking about cryptocurrency.

Probably the most common names in crypto are either Bitcoin or Ether (aka Ethereum).

Believe it or not, crypto has become arguably one of the best long-term investments – specifically if you’re not afraid of volatility.

Take a look at the historical astronomical returns of Bitcoin:

bitcoin price chart 2013-2021

Source: CoinDesk

Although the returns for Bitcoin have been staggering, it should be noted that Bitcoin – and cryptocurrency in general – is extremely volatile (as demonstrated by the chart above).

Yet, the returns continue to amaze me:

Year Bitcoin Annual Return

2017

1,318 .00%

2018

-72.60%

2019

87.20%

2020

302.80%

Here’s a way to put these numbers in perspective:

Bitcoin vs. S&P 500

Mean Annual Bitcoin Return

408.80%

Mean Annual S&P 500 Return

16.1%

The demand for cryptocurrencies spiked drastically in 2020 and 2021, especially as the COVID-19 pandemic hit.

If you’re looking to invest in cryptocurrency as well, you may want to consider opening a free Coinbase account.

Coinbase is one of the top 3 largest crypto exchanges in the world, and offers 30+ coins for investing – plus it takes about 5 minutes to set up your account.

Cryptocurrency is likely one of the most volatile yet best long-term investments with the highest return potential. 

However, I would only suggest you consider investing in cryptocurrency if you’re:

  • Comfortable with volatility
  • Comfortable with cryptocurrency
  • Debt-free (specifically high-interest debt)

Even if you are keen on investing in crypto, I would suggest only investing as much as you are willing to lose because crypto is highly volatile. 

best long term investment - stocks

4. Stocks


Undoubtedly, stocks are one of the best long-term investments because stocks can yield a high return on your investment.

As they say, “no pain, no gain.”

However, the real reason why people (like me) invest in stocks, is because we believe that the stock value will increase over time.

And, this is not a wrong theory. 

In fact, even over just the past 40 years, the stock market has made positive returns.

dow jones industrial average chart 1981-2021

Source: Google Finance

That’s right… stocks can be an incredible investment.

That volatile behavior simply comes with the territory.

For that exact reason – that stocks are volatile over the short term but typically yield positive growth over the long-term – is why you should be considering stocks as a long-term investment.

If you zoom out and look at the bigger picture (we’re talking 30 to 50 years from now), a tiny drop in the stock market today will not make a significant difference in your portfolio.

And that’s why professionals have recommended the “buy and hold” long-term investment strategy.

Based on historical data, investors who stay invested – regardless of stock market ups or downs – are much more likely to earn positive returns over long periods of time. 

If you want to try your hand at investing in the stock market, I’d suggest considering the investing app Acorns.

If you’re a little more advanced (and can afford to invest several $100 dollars), then the investing app M1 Finance is another great option.

Keep in mind that not all stocks are created equal.

There are different types of stocks, which I’ll talk about below:

Type of Stock What it Does

Growth Stock

Focused on long-term growth, with minimal to no dividend payouts

Example = Apple

Dividend Stock

Focused on returning company profits to shareholders in the form of dividends

Example = AT&T

Large Cap Stock

Companies with a market value between $10 billion to $200 billion

Example = Amazon

Mid Cap Stock

Companies with a market value between $2 billion to $10 billion

Example = Stitch Fix

Small Cap Stock

Companies with a market value between $300 million to $2 billion

Example = Carparts.com

Value Stock

Company with a low price relative to the company’s financial performance

Example = ExxonMobile

The type of stock you invest in really depends on your comfort level with risk.

If you’re OK taking some risk, then you may want to consider:

  • Growth stocks
  • Mid-cap stocks
  • Small-cap stocks

On the other hand, if you’re more comfortable with stable and steady returns over time, then you may want to consider the following:

  • Value stocks
  • Dividend stocks
  • Large-cap stocks

The key message here is this: Invest early. Invest consistently.

best long term investment - passive real estate investing

5. Passive Real Estate Investing


Real estate is probably one of the best long-term investments. 

If you want to join the high roller real estate club but don’t want to do any of the physical work (like finding new tenants, dealing with tenant disputes, etc.), then there are other options!

The best place to invest money right now for passive real estate investing includes:

  • Real estate crowdfunding
  • Real estate investment trusts (aka REITs)

I’ve defined these 2 words in plain English below 👇

Real Estate Crowdfunding Real Estate Investment Trusts (REITs)

You (the investor) can select which real estate investment you want to participate in

Your investment would basically serve as a microloan to real estate developers, flippers, etc.

You can invest in real estate through REITs much like you can invest in stocks

You simply buy into the REIT and as the REIT profits, you earn a passive income stream and you also receive a portion of the profits

One reason why I think passive real estate investing is one of the best long-term investments is because you get to have a slice of the real estate pie – without doing any of the hard work (aka dealing with tenants!). 

I like REITs because it’s just like investing in stocks and REITs offer a pretty high return on your investment.

In fact, as of March 2019, REITs have seen an average annual return of 10.50%.

10.50% is the average annual return for REITs as of March 2019

Source: Investopedia

In comparison, the S&P 500 Index (which tracks the