Long-term investments are crucial for building substantial wealth and achieving financial independence. In 2025, selecting the right long-term investments is essential for those aiming to retire as billionaires.
This guide outlines the 9 best long-term investments in 2025, from stocks and Bitcoin ETFs to real estate and mutual funds. Each investment type offers unique benefits and risks, making it vital to choose based on your financial goals and risk tolerance.
By making informed decisions today, you can ensure significant growth and set yourself on the path to retiring with substantial wealth.
1. Bitcoin ETFs: A Modern Approach to Crypto Investing
Bitcoin ETFs (Exchange-Traded Funds) offer a more accessible way for traditional investors to gain exposure to Bitcoin without directly purchasing the cryptocurrency itself. These funds track the price of Bitcoin, allowing investors to buy and sell Bitcoin exposure on a regulated exchange, similar to stocks or mutual funds.
Examples:
- ProShares Bitcoin Strategy ETF (BITO): A fund that tracks Bitcoin futures contracts.
- VanEck Bitcoin Strategy ETF (XBTF): Another ETF focused on Bitcoin futures, providing exposure to the cryptocurrency market.
Benefits of Bitcoin ETFs as long-term investments:
- Offers exposure to Bitcoin without needing to directly manage cryptocurrency wallets.
- More regulation and security compared to owning Bitcoin outright.
- Allows for easy trading through brokerage accounts.
Tips:
- Carefully assess the risks associated with Bitcoin volatility before investing in long-term investments like Bitcoin ETFs.
- Consider Bitcoin ETFs as part of a diversified long-term investment strategy.
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2. Mutual Funds: Professional Management and Diversification
Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, and other securities. These funds are managed by professional portfolio managers who handle the selection and buying of investments.
Examples:
- Vanguard Total Stock Market Index Fund (VTSAX): A fund that provides broad exposure to U.S. stocks.
- Fidelity 500 Index Fund (FXAIX): Tracks the performance of the S&P 500 index.
Benefits of long-term investments in mutual funds:
- Diversified exposure to a wide range of assets.
- Professionally managed, reducing the effort required by individual investors.
- Ideal for long-term investments seeking stability.
Tips:
- Choose low-cost mutual funds with a proven track record for long-term investments.
- Diversify across different types of mutual funds (e.g., equity, bond, sector-specific funds) to balance risk in your long-term investment portfolio.
- By investing in assets like stocks, bonds, commodities, and currencies, you can maximize your returns. Additionally, Fidelity promotions offer various opportunities for earning higher returns through diversified investments.
3. Stocks: The Foundation of Long-Term Wealth
Investing in the stock market has proven to be one of the best ways to generate wealth over the long term. Historically, stocks have offered an average annual return of about 10%, making them an essential asset for long-term investments. Stocks represent partial ownership of companies, and as these companies grow, so does the value of your shares.
For long-term success, it’s crucial to diversify your stock portfolio by including a mix of growth, value, and dividend stocks. Growth stocks like Amazon, Nvidia, and Tesla offer significant upside potential, while value stocks such as Exxon Mobil, Johnson & Johnson, and Verizon Communications provide stability. Dividend stocks like AT&T, Walgreens Boots Alliance, and 3M pay consistent dividends, which can be reinvested for additional growth.
Benefits of investing in stocks for long-term investments:
- High growth potential in growth stocks (e.g., Amazon, Nvidia).
- Stability and income from value and dividend stocks.
- Historically strong returns averaging 10% per year for long-term investments.
Tips:
- Diversify your stock holdings across different sectors for a balanced long-term investment portfolio.
- Focus on blue-chip stocks like Johnson & Johnson or Exxon Mobil for steady returns in your long-term investments.
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4. Real Estate: Building Wealth Through Property
Real estate has always been a strong contender in the world of long-term investments. While directly purchasing properties can be expensive and illiquid, Real Estate Investment Trusts (REITs) offer a more accessible option for retail investors. REITs allow you to invest in real estate without the need to manage properties directly.
Examples:
- Realty Income (O): A REIT known for its reliable monthly dividends.
- Public Storage (PSA): A REIT specializing in self-storage facilities.
Benefits of long-term investments in real estate:
- Diversification away from traditional stocks and bonds.
- Attractive dividends and tax advantages (such as depreciation).
- Historically less volatile than the stock market for long-term investments.
Tips:
- Invest in well-established REITs for stability in your long-term investment strategy.
- Consider diversified REITs to mitigate sector-specific risks in your long-term investments.
- REITs allow you to invest in real estate without the need to directly own property, providing a more liquid and diversified option. While
5. High-Yield Savings Accounts: Safe and Liquid Investments
High-yield savings accounts offer a way to grow your savings at a higher interest rate than a typical savings account, making them a great choice for conservative long-term investments who want a safe, liquid investment. These accounts are typically offered by online banks and credit unions.
Examples:
- Marcus by Goldman Sachs High-Yield Savings Account: Offers competitive interest rates with no fees.
- Ally Bank High-Yield Savings Account: Known for its high interest rates and ease of use.
Benefits of long-term investments in high-yield savings accounts:
- Low-risk, FDIC-insured.
- Provides liquidity and easy access to your money, while earning more than traditional savings accounts.
- Ideal for building an emergency fund or parking cash for future long-term investments.
Tips:
- Choose accounts with the highest interest rates and minimal fees for long-term investments.
- Use high-yield savings accounts as a safe and liquid asset in your long-term investments strategy.
- On the other side, high-yield checking accounts are gaining popularity for offering the best of both worlds: everyday banking features and interest rates that can rival savings accounts.
6. Certificates of Deposit (CDs): Fixed, Low-Risk Returns
Certificates of Deposit (CDs) are time-deposit accounts offered by banks that pay a fixed interest rate over a set period. They are considered low-risk because your initial investment is guaranteed as long as you hold the CD until maturity.
Examples:
- Ally Bank 12-Month CD: Known for offering competitive interest rates on short-term CDs.
- Synchrony Bank 5-Year CD: Offers higher interest rates for longer-term investments.
Benefits of long-term investments in CDs:
- Fixed interest rates provide predictable returns for long-term investments.
- FDIC-insured, making them a low-risk option for long-term investments.
- Can ladder CDs to access funds periodically while earning higher rates over the long term.
Tips:
- Consider laddering CDs for added flexibility in your long-term investments strategy.
- Use CDs for stable long-term investments with a low-risk tolerance.
7. Index Funds: Low-Cost, Broad Market Exposure
Index funds are a type of mutual fund that aims to replicate the performance of a specific financial market index, such as the S&P 500. These funds offer broad market exposure and are managed passively, which helps keep fees low.
Examples:
- Vanguard S&P 500 Index Fund (VOO): A fund that tracks the performance of the S&P 500.
- Schwab U.S. Large-Cap ETF (SCHX): Another fund that mirrors large-cap U.S. stocks.
Benefits of long-term investments in index funds:
- Low-cost, diversified exposure to a broad market index.
- Lower fees compared to actively managed funds, ideal for long-term investments.
- Historically strong returns, especially over the long term.
Tips:
- Opt for funds with low expense ratios to maximize returns in your long-term investments.
- Index funds are an excellent option for hands-off long-term investments.
8. Real Estate Crowdfunding: Access to Property Investment
Real estate crowdfunding allows investors to pool their money to invest in real estate projects without the need to own property directly. This is a great way for small investors to gain access to the real estate market, which typically requires a substantial upfront investment.
Examples:
- Fundrise: A platform that allows you to invest in commercial and residential real estate projects.
- RealtyMogul: Offers both equity and debt investment opportunities in real estate.
Benefits of long-term investments in real estate crowdfunding:
- Provides access to the real estate market with lower investment thresholds.
- Diversifies your portfolio beyond stocks and bonds for long-term investments.
- Potential for high returns from property appreciation and rental income in long-term investments.
Tips:
- Research the platform’s fees and track record before investing in long-term investments like real estate crowdfunding.
- REITS or Real estate both crowdfunding can be illiquid, so invest with a long-term investment horizon.
9. Financial Products
Long-term investments refer to assets or financial products that are held with the intention of generating returns over an extended period, usually several years or decades. These types of investments are focused on building wealth over time, offering potential for significant growth through compounding.
Examples:
- Stocks: Equities that represent ownership in companies with the potential for growth.
- Bonds: Fixed-income securities issued by governments or corporations.
- Real Estate: Property investments or REITs offering long-term growth and rental income.
Benefits of long-term investments:
- Helps accumulate wealth over time with compound returns.
- Minimizes the impact of short-term market volatility.
- Provides a hedge against inflation and other economic uncertainties.
Tips:
- Choose assets with a stable history of growth for long-term investments.
- Regularly monitor and adjust your portfolio to stay aligned with your financial goals.
Conclusion
Long-term investments are the key to financial success and ultimately building wealth over time. By investing in Bitcoin ETFs, mutual funds, stocks, real estate, and other promising assets, you can set yourself up for financial independence and potentially retire as a billionaire.
Remember, the best long-term investments align with your risk tolerance and financial goals. It’s essential to educate yourself, do thorough research, and remain patient. As you build and diversify your long-term investments portfolio, you will have the time and the power of compounding on your side to achieve your wealth-building objectives.
Start early, invest wisely, and you’ll be well on your way to financial freedom through strategic long-term investments.