Luis Pazos 
I’ve been investing with Fundrise since 2018. When you sign up using my link, I earn a commission. All opinions are mine.
In this guide, we’re sharing the 10 best long-term investment strategies for 2024. We’re listing ten options because there’s no one-size-fits-all strategy that works for every investor or market situation. Covering ten strategies gives you the flexibility to mix and match for liquidity, safety, income, and long-term growth.
As a long-term investor, you need to focus on all four criteria to succeed.
6 Best Investments Over 5 Years
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Real Estate: Best for Predictable Gains and Tax Benefits
- Minimum Investment: Usually 20% of the purchase price; as low as $10 with real estate crowdfunding.
- Stability/Risk Level: High stability/moderate risk.
- Liquidity Level: Low.
- Transaction Costs: Up to 10% of property sale; 2%-3% real estate crowdfunding fees.
- Where to Invest: Local real estate market or Fundrise.
How to Invest: Invest in a primary residence, rental real estate, or commercial property. Real estate crowdfunding platforms like Fundrise allow investments starting at $10.
Benefits: Comparable returns to the stock market, tax benefits, and income from rents and capital appreciation.
Drawbacks: Requires a substantial down payment and hands-on involvement.
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Real Estate Investment Trusts (REITs): Best for Diversifying into Commercial Real Estate
- Minimum Investment: Cost of one REIT share.
- Stability/Risk Level: Low to moderate stability and risk.
- Liquidity Level: High.
- Transaction Costs: None.
- Where to Invest: Zacks Trade, E*TRADE, TD Ameritrade.
How to Invest: Purchase shares through brokerage firms.
Benefits: Invest in commercial real estate without direct ownership or management. REITs must pay out 90% of income as dividends.
Drawbacks: Economic downturns can reduce income and share value.
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Stock Funds: Best for Long-Term Growth
- Minimum Investment: ETFs cost one share; mutual funds start at $1,000.
- Stability/Risk Level: Low to moderate stability/moderate to high risk.
- Liquidity Level: High.
- Transaction Costs: ETFs have none; mutual funds, 0%-3%.
- Where to Invest: M1 Finance, Betterment, Zacks Trade, E*TRADE, TD Ameritrade.
How to Invest: Purchase shares in stock funds through online brokers.
Benefits: Average 10% annual returns over 50 years. ETFs offer low-cost entry and tax benefits on capital gains.
Drawbacks: Returns vary yearly; mutual funds have higher entry costs and fees.
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Cryptocurrencies: Best for Speculation
- Minimum Investment: $2 and up.
- Stability/Risk Level: Low stability/high risk.
- Liquidity Level: Moderate to high.
- Transaction Costs: 0 to 5%, depending on the crypto.
- Where to Invest: Crypto.com, Gemini, Coinbase, Robinhood.
How to Invest: Use crypto exchanges or investment brokers.
Benefits: Diversification away from traditional assets. Potential for substantial price increases.
Drawbacks: High volatility and the risk of significant losses.
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Treasury Inflation-Protected Securities (TIPS): Best for Secure Inflation Protection
- Minimum Investment: $100.
- Stability/Risk Level: High stability/low to moderate risk.
- Liquidity Level: High.
- Transaction Costs: None.
- Where to Invest: Treasury Direct.
How to Invest: Invest through the Treasury Direct portal.
Benefits: Full US government backing and inflation adjustments to principal value.
Drawbacks: Lower interest rates and potential tax implications on principal additions.
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Government-Backed Securities: Best for Safety of Principal
- Minimum Investment: $100.
- Stability/Risk Level: High stability/low to moderate risk.
- Liquidity Level: High.
- Transaction Costs: None.
- Where to Invest: Treasury Direct.
How to Invest: Same as TIPS, with options ranging from four weeks to 30 years.
Benefits: Principal value is guaranteed if held to maturity, with higher interest rates than TIPS.
Drawbacks: Interest rates may not keep up with inflation, and longer-term securities are subject to market value fluctuations.
4 Best Investments for 6-10 Years
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Traditional IRA: Best for Dedicated Retirement Planning
- Minimum Investment: Usually none; some trustees may require $50 or $100 to open.
- Stability/Risk Level: Very low to very high, depending on the investment mix.
- Liquidity Level: Limited due to tax consequences.
- Transaction Costs: Generally, no fees on common securities.
- Where to Invest: M1 Finance, Betterment, Zacks Trade, E*TRADE, TD Ameritrade.
How to Invest: Open an account with banks, brokers, or robo-advisors.
Benefits: Tax-deferred growth and potential tax-deductible contributions.
Drawbacks: Early withdrawals incur penalties, and Required Minimum Distributions start at age 73.
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Roth IRA: Best for Retirement Planning and Immediate Fund Access
- Minimum Investment: Usually none; some trustees may require $50 or $100 to open.
- Stability/Risk Level: Very low to very high, depending on the investment mix.
- Liquidity Level: High for contributions; limited for investment earnings.
- Transaction Costs: Generally, no fees on common securities.
- Where to Invest: M1 Finance, Betterment, Zacks Trade, E*TRADE, TD Ameritrade.
How to Invest: Same as Traditional IRAs, but specify it’s a Roth.
Benefits: Tax-free withdrawals on earnings after age 59 ½, and contributions can be withdrawn anytime.
Drawbacks: Contributions are not tax-deductible, which may impact the growth of the plan balance.
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High-Yield Savings: Best for Liquidity with Interest Income
- Minimum Investment: $0 and up.
- Stability/Risk Level: Very high stability/very low risk.
- Liquidity Level: Very high.
- Transaction Costs: None to $25 per month.
- Where to Invest: Save Better, Ally Bank, Discover Bank, Capital One 360, CIT Bank, Betterment.
How to Invest: Online banks offer the best rates.
Benefits: Full liquidity and principal safety with interest income.
Drawbacks: Rates usually below inflation, and can fluctuate.
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Long-Term CDs: Best for Locking in Interest Rates
- Minimum Investment: $100 to $1,000 and up.
- Stability/Risk Level: Very stable/low risk.
- Liquidity Level: Moderate, depends on the CD term.
- Transaction Costs: None but early withdrawal penalties apply.
- Where to Invest: Save Better, PenFed, Ally Bank, Discover Bank, Capital One 360, CIT Bank.
How to Invest: Available at most banks and credit unions.
Benefits: Locks in current rates, protecting against declines.
Drawbacks: Rates are below inflation, and early withdrawal penalties apply.
What to Look for in a Long-Term Investment
As a long-term investor, focus on liquidity, safety, income, and growth.
Consider These Factors:
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Your Risk Tolerance: Understand your willingness to lose money on investments. Use tools like the Vanguard Investor Questionnaire.
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Investment Time Horizon: Longer horizons allow for more aggressive investments. Short-term needs require more conservative choices.
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Specific Investments: Ensure individual investments align with your goals. Research funds or individual companies thoroughly.
Additional Resources for New Investors
If you’re starting or looking to expand, check out beginner guides and specific investment strategy articles for various portfolio levels (e.g., $1K, $5K, $10K, $20K, $50K).
Summary of the 10 Best Long-Term Investment Strategies for 2024
Know your risk tolerance to implement these strategies:
- Real Estate: Best for Predictable Gains and Tax Benefits.
- Real Estate Investment Trusts (REITs): Best for Commercial Real Estate.
- Stock Funds: Best for Long-Term Growth.
- Cryptocurrencies: Best for Speculation.
- Treasury Inflation-Protected Securities (TIPS): Best for Inflation Protection.
- Government-Backed Securities: Best for Safety.
- Traditional IRAs: Best for Retirement Planning.
- Roth IRAs: Best for Immediate Funds Access and Retirement.
- High-Yield Savings: Best for Liquidity and Income.
- Long-Term CDs: Best for Locking in Interest Rates.
Successful long-term investing requires balancing liquidity, safety, income, and growth using the available tools and resources. Always research thoroughly before investing.
