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10 Best Long-Term Investment Strategies for 2022

[ad_1] In this guide, we’re going to present the 10 best long-term investment strategies for 2022. The reason we’re providing 10 is because there’s no single investment strategy that’s right for all investors, and in all investment environments. By covering 10, we’re providing an opportunity to mix several strategies to provide the right combination of liquidity, safety, income and long-term growth. As a long-term investor, you’ll need to be focused on all four criteria to be successful. The table below provides a quick summary of each of the 10 best long-term investment strategies for 2022, along with the main features and benefits of each. More detailed descriptions of each strategy will follow. 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 Below is our list of the 10 best long-term investment strategies for 2022. Please note that they are not ranked in any certain order. That’s because each investment strategy will apply in different economic and financial environments. Real Estate: Best for Predictable Gains + Tax Benefits Real Estate Investment Trusts (REITs): Best for Diversifying into Commercial Real Estate Investing Stock Funds: Best for Long-term Growth Cryptocurrencies: Best for Speculation Treasury Inflation-Protected Securities (TIPS): Best for Secure Inflation Protection Government Backed Securities: Best for Safety of Principal Traditional IRAs: Best for Dedicated Retirement Planning Roth IRAs: Best for Retirement Planning + Immediate Funds Access High Yield Savings: Best for Liquidity with Interest Income Long-Term CDs: Best for Locking-in Interest Rates Now we’re going to discuss each of the 10 long-term investment strategies in greater detail. We’ve broken the strategies into two categories, over 5 years and 6 – 10 years. That’s because duration matters, even with long-term investment strategies. #ap59528-ww{padding-top:20px;position:relative;text-align:center;font-size:12px;font-family:Archivo, sans-serif}#ap59528-ww #ap59528-ww-indicator{text-align:right;color:#4a4a4a}#ap59528-ww #ap59528-ww-indicator-wrapper{display:inline-flex;align-items:center;justify-content:flex-end;margin-bottom:8px}#ap59528-ww #ap59528-ww-indicator-wrapper:hover #ap59528-ww-text{display:block}#ap59528-ww #ap59528-ww-indicator-wrapper:hover #ap59528-ww-label{display:none}#ap59528-ww #ap59528-ww-text{margin:auto 3px auto auto}#ap59528-ww #ap59528-ww-label{margin-left:4px;margin-right:3px}#ap59528-ww #ap59528-ww-icon{margin:auto;display:inline-block;width:16px;height:16px;min-width:16px;min-height:16px;cursor:pointer}#ap59528-ww #ap59528-ww-icon img{vertical-align:middle;width:16px;height:16px;min-width:16px;min-height:16px}#ap59528-ww #ap59528-ww-text-bottom{margin:5px}#ap59528-ww #ap59528-ww-text{display:none}#ap59528-ww #ap59528-ww-icon img{text-indent:-9999px;color:transparent} Ads by Money. 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Public.com lets you invest in stocks, ETFs, and crypto with any amount of money. Share insights in a community and access a wealth of educational content. HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas Join Today Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures. 6 Best Investments Over 5 Years Real Estate: Best for Predictable Gains + Tax Benefits Minimum Investment: Typically, 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: Your local real estate market or Fundrise (real estate crowdfunding) How to invest. The most obvious way is to invest in a primary residence. But you can also invest in rental real estate, or even commercial property. If you like the idea of investing in individual properties, but you don’t want to buy them directly, consider real estate crowdfunding. A platform like Fundrise can enable you to invest with as little as $10. Benefits. Real estate has provided investment returns comparable to the stock market. Residential real estate produces average returns of 10.6%, while commercial property has returned an average of 9.5%. Rental property can be particularly advantageous, because it provides current income from rents, and long-term capital appreciation. Real estate also has valuable tax benefits, like depreciation expense. Drawbacks. Purchasing rental real estate requires a substantial down payment, usually 20% of the purchase price. It’s also a very hands-on investment, requiring you to market the property, find tenants, and provide maintenance. #ap79047-ww{padding-top:20px;position:relative;text-align:center;font-size:12px;font-family:Archivo, sans-serif}#ap79047-ww

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