The four investments that may be considered long-term are:
- Mutual funds: These are professionally managed investment programs diversified across stocks, bonds, or other securities, suitable for long-term growth.
- Bonds: Debt securities with maturity dates that can range from short to long-term, offering regular interest payments and principal repayment.
- Retirement funds: Investment accounts like 401(k)s or IRAs specifically designed for accumulating savings over a long retirement horizon.
- Commodities: Physical goods like gold or oil that can play a role in a diversified long-term investment strategy, though they tend to be more volatile and speculative.
Savings accounts, while offering safety and liquidity, generally provide lower returns and are more suitable for short-term savings rather than long-term investing.