Long-Term Investments to Consider in 2021

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Investing can be intimidating. Check out these 5 Long-Term Investments tips to Consider in 2021.

We all know investing money is the wisest thing to do with it your savings, especially in the long-term. However, most Gen Z and millennials actually struggle to invest. In one survey, 69% of young people said they worry about whether they’re investing correctly. Unsurprisingly, 52% of these respondents were afraid of losing money through a bad investment — a sentiment shared by 72% of the women surveyed.

money investment

It's understandable to feel a little intimidated by investing because you might not know who to trust, don’t know where to start, or don’t have enough money to invest. Still, a long-term investment would greatly benefit you, so we’re going to demystify a few investment choices to help you along:


If you’re an employee, you’re probably saving for retirement through an individual retirement account (IRA). Did you know that you can actually use the money you contribute to your IRA to invest in stocks, bonds or CDs? If your risk tolerance is low, an IRA CD is a good place to start investing.

A CD is a time-deposit account that pays you an interest at a set rate, in exchange for your agreeing to deposit cash for a set term, which could be anywhere from three months to 10 years. Compared to a savings account, IRA CD rates are usually much higher because they are less liquid. The only risk to investing in an IRA CD is whether or not you’re earning enough to beat inflation.

2) Bond Funds

A bond is a loan from you to a company or government that yields a fixed interest over a set period of time. Once that period is over — which could be any length from a few days to 30 years — you will be paid back the full amount you bought the bond for. The interest rate, called yield, will vary depending on the type and duration of the bond.

Bonds are safe on their own, but they can be much safer if they were part of a fund. A fund may own hundreds of bond types across many different issuers, so a bond fund diversifies holdings and lessens impact on a portfolio in case one bond defaults.

3) REITs

Real estate investment trusts (REITs) own and manage commercial real estate that produces income, whether it’s the property itself or the mortgage on that property. Acquiring a REIT allows you to invest in real estate without actually owning any property.

There are different kinds of REITs available, and each has its own risks and advantages, depending on the state of the economy. However, REITs are ideal if you’re trying to establish a portfolio because they tend to provide greater diversification and lower overall risks with potentially higher total returns.

4) Gold

Gold is a unique asset; it’s highly liquid but scarce in supply, so its value always appreciates over time. But while you can buy physical gold, it can be difficult to store it, secure it, and validate its authenticity.

Instead, you might want to try gold exchange-traded funds (ETFs), where you invest a small amount of money in gold through an instrument, rather than handling the physical commodity yourself. Some of today's best gold ETFs include the SPDR Gold Trust ETF and the VanEck Vectors Gold Miners ETF. The former invests in physical gold directly, while the latter is a firm that mines gold and silver.

shopping with coupons

5) Couponing

Couponing is technically not an investment, but the time and effort spent in smart couponing can help you save enough money to fund other long-term investments. You can search for deals and discounts on goods and services through paper ads, digital promo codes, or money-saving apps. Before you start couponing, it’s important to plan and match coupons with minimum sales to ensure you actually save money with your purchases.

Investing can be intimidating but hopefully these Long Term Investments tips help you feel better about getting started.

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