Only 16% of Americans Know the Best Long-Term Investment

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

[[{“value”:”According to a recent Gallup poll, 37% of Americans think real estate is the best long-term investment, while 23% say it’s gold.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. In a distant third, with just 16% of the vote? Stocks — by far the highest long-term earner on the list.Over the past 40-plus years, the stock market has greatly outperformed real estate, gold, savings accounts, and everything else on the list. Here’s why it’s still the best place for long-term investment.The return on each investment over several decadesHere’s how each investment option has performed over the last 40-plus years:S&P 500 stocks: From 1980 to 2024, the S&P 500 returned an average of 12% per year, including reinvested dividends.Bonds: From 1980 to 2021, the Bloomberg U.S. Aggregate Bond Index grew an average of about 7% per year.Gold: From 1980 to the end of 2023, gold grew an average of 4.4% per year.Real estate: Calculating annual returns on real estate is difficult due to variations in property types, locations, and market conditions. But it’s estimated that residential real estate in the United States grew 4.3% per year from 1967 to 2024.Finally, there’s crypto, which received 4% of the Gallup poll vote and is generally considered too volatile for long-term investment.Why does the S&P 500 win in the long run?The S&P 500 is an index made up of 500 of the largest U.S. companies, including corporations like Apple, Amazon, and Microsoft. As the economy grows, so does the value of these companies. Over time, that consistent growth adds up, while risk is mitigated by the diversity of the index.Compare that with real estate — say, your home or even a rental property. It’s generally a safe bet, but it’s highly sensitive to local market conditions. Property values in your area may boom or go bust. In any case, odds are you won’t earn more than the S&P 500 over long periods of time.How to invest in the S&P 500The easiest way to invest in stocks is through an S&P 500 index fund. These funds track the full index and charge very low fees, usually under 0.1%.You can invest through:Brokerage accounts: Open an account with one of the best brokerage platforms like Robinhood or E*TRADE from Morgan Stanley for easy online trading.Retirement accounts: You may already have S&P 500 exposure in your 401(k) or IRA. Look for an index fund option and consider increasing your contributions.Find the best long-term home for your money. Check out this list of our favorite stock brokers to find one that’s a good fit for you.Where does cash fit in?Stocks are the best long-term investment, but you’ll still want cash set aside for emergencies and short-term savings.That’s why we recommend opening a high-yield savings account (HYSA). Some of these accounts currently pay more than 4.00% APY — giving your money a boost while keeping it safe and accessible.What are you waiting for? Review all our favorite HYSA options now and earn up to 4.40% APY back on your money.Invest for the long run todayLike any investment, stocks go through down periods, sometimes for years. But in the long run, the stock market is still the best long-term home for your money if you’re looking for strong returns.Other investments like real estate, gold, and even bonds can play a role in your investment strategy, too. But if you’re saving for the long term — especially for retirement — stocks should make up the core of your portfolio.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Amazon, Apple, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

According to a recent Gallup poll, 37% of Americans think real estate is the best long-term investment, while 23% say it’s gold.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

In a distant third, with just 16% of the vote? Stocks — by far the highest long-term earner on the list.

Over the past 40-plus years, the stock market has greatly outperformed real estate, gold, savings accounts, and everything else on the list. Here’s why it’s still the best place for long-term investment.

The return on each investment over several decades

Here’s how each investment option has performed over the last 40-plus years:

• S&P 500 stocks: From 1980 to 2024, the S&P 500 returned an average of 12% per year, including reinvested dividends.
• Bonds: From 1980 to 2021, the Bloomberg U.S. Aggregate Bond Index grew an average of about 7% per year.
• Gold: From 1980 to the end of 2023, gold grew an average of 4.4% per year.
• Real estate: Calculating annual returns on real estate is difficult due to variations in property types, locations, and market conditions. But it’s estimated that residential real estate in the United States grew 4.3% per year from 1967 to 2024.

Finally, there’s crypto, which received 4% of the Gallup poll vote and is generally considered too volatile for long-term investment.

Why does the S&P 500 win in the long run?

The S&P 500 is an index made up of 500 of the largest U.S. companies, including corporations like Apple, Amazon, and Microsoft. As the economy grows, so does the value of these companies. Over time, that consistent growth adds up, while risk is mitigated by the diversity of the index.

Compare that with real estate — say, your home or even a rental property. It’s generally a safe bet, but it’s highly sensitive to local market conditions. Property values in your area may boom or go bust. In any case, odds are you won’t earn more than the S&P 500 over long periods of time.

How to invest in the S&P 500

The easiest way to invest in stocks is through an S&P 500 index fund. These funds track the full index and charge very low fees, usually under 0.1%.

You can invest through:

• Brokerage accounts: Open an account with one of the best brokerage platforms like Robinhood or E*TRADE from Morgan Stanley for easy online trading.
• Retirement accounts: You may already have S&P 500 exposure in your 401(k) or IRA. Look for an index fund option and consider increasing your contributions.

Where does cash fit in?

Stocks are the best long-term investment, but you’ll still want cash set aside for emergencies and short-term savings.

That’s why we recommend opening a high-yield savings account (HYSA). Some of these accounts currently pay more than 4.00% APY — giving your money a boost while keeping it safe and accessible.

Invest for the long run today

Like any investment, stocks go through down periods, sometimes for years. But in the long run, the stock market is still the best long-term home for your money if you’re looking for strong returns.

Other investments like real estate, gold, and even bonds can play a role in your investment strategy, too. But if you’re saving for the long term — especially for retirement — stocks should make up the core of your portfolio.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Amazon, Apple, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

“}]] Read More