CNN Underscored reviews financial products such as credit cards and bank accounts based on their overall value. We may receive a commission if you apply and are approved for a product, but our reporting is always independent and objective.
Regardless of whether you use a traditional financial advisor, a robo-advisor or you do all your investing yourself, there are myriad ways to invest your hard-earned cash. Numerous platforms, including brokerage firms like Charles Schwab, Fidelity and Vanguard, let you oversee your portfolio and make trades in real time. You can even invest using any number of mobile apps, which is crucial if you typically do all your investing on the go.
But investing for long-term growth is much different than day trading, and the investments you select need to reflect your extended timeline. For example, your investment choices should be different if you’re investing with a 20-year or 30-year timeline than if you need the cash next year.
With that in mind, we reached out to several financial advisors to find out about their favorite long-term investments that help build wealth over time. Whether you’re dollar-cost averaging or throwing in lump sums of money whenever you can, here are six investment options that can help you build wealth that lasts.
Anna Rathbun, who serves as chief investment officer of CBIZ Investment Advisory Services, says the stock market is typically a good bet for long-term growth since, historically, it’s always gone up over time. But not all stocks are created equal, she says, adding that some are more growth-oriented in style and others are more defensive in nature.
To help diversify as much as possible, Rathbun suggests investing in index funds that provide exposure to a broad market, such as the S&P 500. “Indexing is also a low-cost option for fee-sensitive investors,” she says, which is important since long-term investors don’t want to be eaten alive by fees.
However, Rathbun adds that investing in equity …….