Planning for retirement can feel overwhelming. But it doesn’t have to be. The key is to find investments that grow over time — even through ups and downs. In this guide, we’ll break down the best long-term investments for retirement in the U.S., so you can build a stronger, more secure future.
Why Long-Term Investing Is So Important
Retirement is a long-term goal. If you’re in your 30s, you may have 30+ years to grow your savings. Even in your 50s, smart investing still matters. According to Fidelity, investing early and staying consistent gives your money more time to grow through compounding.
401(k): A Strong Foundation for Retirement
A 401(k) is one of the best long-term investments for retirement in the U.S. It lets you invest part of your paycheck before taxes. Many employers even match what you put in — that’s free money.
Most plans include target-date funds or index funds, which grow with the market. Learn more in NerdWallet’s guide to how 401(k)s work.
Roth IRA: Grow Money, Withdraw Tax-Free
A Roth IRA is another great option. You contribute money that’s already been taxed. But when you retire, your withdrawals — including profits — are tax-free.
This makes Roth IRAs ideal for younger workers. If you expect to earn more later, the tax-free benefit helps a lot. Investopedia explains how a Roth IRA works and who qualifies.
Low-Cost Index Funds: Set It and Forget It
Index funds track major markets like the S&P 500. They’re low-fee, easy to manage, and good for long-term growth. Many financial advisors recommend them for retirement because they don’t require much effort.
They’re also available in most 401(k) and IRA accounts. Morningstar shows that they often beat actively managed funds over time.
Real Estate: A Tangible Long-Term Investment For Retirement
Real estate remains one of the best long-term investments for retirement in the U.S. It provides rental income, tax benefits, and long-term appreciation.
Not ready to buy a property? You can invest through REITs (Real Estate Investment Trusts). Platforms like Fundrise let you start small. SmartAsset explains how REITs work and what to expect.
U.S. Treasury Bonds and I Bonds
If you want safety, consider Treasury Bonds and I Bonds. These are backed by the government and protect against inflation. While returns are lower than stocks, they’re great for stability.
During 2022–2023, I Bonds gained popularity due to high inflation. You can buy them directly from TreasuryDirect.
HSA: A Retirement Booster with Tax Perks
A Health Savings Account (HSA) is more than just for medical bills. It can also be one of the best long-term investments for retirement in the U.S. if used strategically.
Here’s why:
- You get a tax deduction when you contribute
- It grows tax-free
- You don’t pay tax when using the money for medical costs
After age 65, you can use it for anything — just like an IRA. Learn more at IRS.gov.
Target-Date Funds: Auto-Adjust for Retirement
Target-date funds change your investment mix based on your retirement year. If you plan to retire in 2045, a “2045 Fund” starts aggressive, then gets more conservative over time.
These funds are simple and great for hands-off investors. You can find them in most 401(k) plans and IRAs. Fidelity offers many options.
How to Choose the Best Long-Term Investments for Retirement in the U.S.
Choosing the right investments depends on your goals, risk tolerance, and age. But here are some simple rules:
- Start now. The earlier, the better.
- Use tax-advantaged accounts (like 401(k)s and IRAs).
- Keep fees low.
- Diversify — don’t rely on just one type of investment.
- Review your plan yearly.
The best portfolio is one you understand — and one you’ll stick with.
Final Thoughts
There’s no magic formula for retirement. But with the right strategy, you can make your money work for you. The best long-term investments for retirement in the U.S. — like 401(k)s, Roth IRAs, index funds, real estate, and HSAs — all offer powerful growth potential.
Pick what fits your life. Stick to it. And give it time. Your future self will thank you.
