There is no such thing. The best types of investment strategies depend on your risk tolerance, age, and long-term goals. Consider your time, financial knowledge, and how much guidance you need along the way to help guide your strategy.
Search
- Contact Us
- Claims
-
Log In
If you haven’t registered your account for online access yet, register now.
Other Products
Quick Links
Investment Strategies for Long-Term Growth
Sometimes, just getting started is the hardest part. Less than half of non-investors—45 percent—don’t invest because they don’t know how. If they had the resources and knowledge, more than 83 percent of respondents said they would be more likely to invest.1
If you are interested in investing but don’t know where to begin, review our primers on investment accounts, how a diversified investment portfolio can help, and tips on how to stay consistent.
Key takeaways:
- There is no one investment strategy—yours should reflect your individual goals and circumstances.
- A diversified portfolio is always recommended—it can help keep your growth consistent over time.
- You don’t have to do it alone—there are plenty of financial professionals who can work with you.
Types of investment accounts
There are several types to choose from, each designed for different financial goals:
Retirement accounts
401(k)s
A 401(k) allows you to put a portion of your paycheck into an investment account to save for retirement. There are a few different types of 401(k) plans:
- Traditional
- Roth
- 403(b)
- SIMPLE
- SEP
The type of 401(k) you get depends on your employment. Traditional and Roth 401(k) plans are commonly offered by employers. The difference is how you’re taxed: Traditional plans are taxed on withdrawals, while Roth 401(k) plans are taxed on contributions. SIMPLE and SEP plans are usually for self-employed individuals or business owners, while 403(b) plans are offered by public schools or qualifying nonprofit organizations.
IRAs
Individual retirement accounts (IRAs) are retirement savings options not linked to your employer.2 You can open an IRA on your own. There are various kinds, each with different eligibility rules and tax advantages:
- Traditional
- Roth
- SEP
- SIMPLE
- Payroll Deduction
IRAs offer tax benefits that depend on the type of account. If you’ve left your job and need to roll over your 401(k), you can put it into a traditional 401(k) with your new company or get an IRA. If you’ve already maxed out your 401(k), you can start contributing to an IRA to boost retirement savings.
403Bs
A 403(b) is a retirement plan specifically geared toward workers in education, healthcare, and other tax-exempt organizations like churches. While 401(k) plans focus on the for-profit sector, 403(b) plans are more tailored for nonprofit organizations.3
Traditional and Roth 403(b) plans allow employees to contribute a portion of their paychecks to a retirement savings account that is invested in different types of securities, depending on what employers set up for their workers.
Health savings account
A health savings account (HSA) is a savings account funded with pre-tax dollars to use on eligible future medical expenses.4 To open an HSA, you must be covered by a high-deductible health plan.
If eligible, contributions, earnings, and withdrawals are all tax-free. There’s no federal income tax on HSAs, and your balance never expires, which means the money stays in your account until you use it.
Educational account
529 plan
The 529 education savings plan is an investment account where earnings and withdrawals are tax-free as long as they’re used for qualifying education expenses.5 Contributions aren’t federally tax-exempt, but some states offer tax deductions or credits on these plans. You can also use them for tuition at public, private, or religious elementary or secondary schools.
UGMA and UTMA
The Uniform Gift to Minors Act (UGMA) and the Uniform Transfers to Minors Act (UTMA) are custodial accounts you can set up in your child’s name. These accounts (and the funds in them) belong to the minor child and become accessible to them when they turn 18 or 21 years of age, depending on where they live.6
Coverdell
Coverdell education savings accounts (ESAs) are trust or custodial accounts set up like 529 plans to cover education-related expenses. Contributions are tax-deferred, and withdrawals are tax-free as long as they are used for qualified higher educational expenses.
Unlike 529 plans, you can contribute to a Coverdell ESA only until the minor beneficiary reaches 18 years of age, and it has contribution limits. Contributions aren’t tax-deductible.7
Tax Treatments
Tax-advantaged accounts are subject to IRS rules. Withdrawals that are not qualified, or are taken before applicable age or use requirements are met, may be subject to federal and state income taxes and a 10% federal penalty on early distributions (exceptions may apply). Certain distributions may also result in the loss or recapture of prior tax benefits. Consult a qualified tax advisor regarding your specific situation.
Taxable accounts
Brokerage account
You can use brokerage accounts to buy and sell stocks, bonds, and mutual funds. Brokerage accounts aren’t tied to a specific goal like a 401(k) or 529 plan. They have no contribution or withdrawal limits, but don’t have the same tax advantages, so earnings may be taxed. Money can go in and out of these accounts, making it easier to withdraw funds in the short term.
What is a diversified portfolio?
Portfolio diversification means spreading your assets across various investment types to reduce dependence on any single one. it follows the simple advice not to put all your eggs in one basket.*
Some options include:
- Index funds: funds that generally seek to mirror the performance of a financial index
- Exchange traded funds (ETF): a basket of securities that mimic all or part of the market.
- Target date funds: funds that focus on meeting a balance of assets by a specific date
- Mutual funds: a type of fund where several investors pool money in a fund, where each investor has a small ownership
- Dividend-growth funds: funds that invest in underlying securities that generally pay a portion, or dividend, to investors
Investment strategies for beginners: where to start
Where you start investing depends largely on your age, risk tolerance, and commitment to staying consistent.
For instance, younger people (mid-20s to early 30s) are more likely to take on higher-risk investments with the goal of making long-term gains. Older folks, like those in pre-retirement age, tend to take a more conservative approach because they don’t want to risk losing too much in the short term as they enter retirement.8 It is important to remember, all investments are subject to risk, including possible loss of principal invested.
But remember, there is no one-size-fits-all investment strategy. That’s why it’s important to talk to someone who can walk you through your investing in a way that’s best for you. A financial services professional can help you identify important milestones, articulate your timeline, and provide the guidance you deserve to thoughtfully plan your financial future.
What’s your appetite for risk?
It’s a simple question of how much risk you’re willing to take on to achieve your investment goals.9 For instance, you may be attracted to an asset whose returns tend to fluctuate, or you may prefer one that grows at a slower but more stable rate. By figuring out how much risk you want to take on, you can understand how to adjust your investment diversification. Investors who don’t want to take on as much risk may consider ETFs, index funds, or other lower-risk securities.
When assessing risk, it’s important to not only consider the ups and downs of the market, but also how life risks—like an injury or disablement—can affect your financial progress. A financial services professional can work with you on your goals-based planning that balances life insurance and investment strategies to deliver peace of mind while seeking to accelerate growth.
What New York Life can offer
Consult with a NYLIFE Securities financial services professional who can help guide you based on your goals, risk tolerance, and time horizon. With thousands of financial professionals nationwide, you can find a local professional to create a strategy that best works for you.
Your three next steps
- Write down your long-term financial goals.
- Honestly consider your appetite for risk.
- Consult a financial services professional to build a strategy that balances both.
FAQs
Your investment strategy depends on your risk tolerance and other personal factors. In many cases, younger investors and high earners have more time to devote to long-term investments and growth. If you’re not trying to meet immediate goals, you might be more open to riskier options. If you have a short runway or you’re starting to invest later in life, low-risk investing might be a better choice, offering a moderate but predictable return. A financial services professional can work with you to find where you fit in.
A diversified investment portfolio allows you to take advantage of investments on the upswing while lessening the risk of those who aren’t performing as well. If one investment starts underperforming, your total portfolio won’t suffer. While not fail-proof, it can provide a balance to weather the market’s ups and downs.
RELATED CONTENT
Create an investment strategy that fits your goals.
Our NYLIFE Securities financial services professionals can help you understand your options, balance risk and growth, and put a long-term plan in place.
1Akana, Tom, Matthew Drayton, and Amber Lee. "Why Some Americans Don't Invest in the Stock Market." Federal Reserve Bank of Philadelphia, September 2025. https://www.philadelphiafed.org/-/media/FRBP/Assets/Consumer-Finance/Briefs/Why-Some-Americans-Dont-Invest-in-the-Stock-Market.pdf.
2“Individual retirement arrangements (IRAs). ”Internal Revenue Service. https://www.irs.gov/retirement-plans/individual-retirement-arrangements-iras. Accessed March 26, 2026.
3”IRC 403(b) tax-sheltered annuity plans” Internal Revenue Service. https://www.irs.gov/retirement-plans/irc-403b-tax-sheltered-annuity-plans
4“What's a Health Savings Account?” Centers for Medicare & Medicaid Services. https://www.cms.gov/marketplace/outreach-and-education/health-savings-account.pdf. Accessed March 26, 2026.
5“Compare 529 Plans.” Saving for College. https://www.savingforcollege.com/compare-529-plans. Accessed March 26, 2026.
6“What is a Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) Account?” Internal Revenue Service. Accessed March 26, 2026. https://www.helpwithmybank.gov/help-topics/investments-trusts/uniform-gifts-to-minors-account/ugma.html
7“Topic no. 310, Coverdell education savings accounts.” Internal Revenue Service. https://www.irs.gov/taxtopics/tc310 Accessed March 26, 2026.
8“Active vs. Passive Investing.” FINRA. https://www.finra.org/investors/insights/active-passive-investing. Accessed March 26, 2026.
9“Risk Appetite vs. Risk Tolerance: What is the Difference?” ISACA. https://www.isaca.org/resources/news-and-trends/isaca-now-blog/2022/risk-appetite-vs-risk-tolerance-what-is-the-difference Accessed March 26, 2026.
*Diversification does not assure a profit or protect against market loss.
Investments are offered through properly licensed Registered Representatives of NYLIFE Securities LLC (Member FINRA/SIPC), a Licensed Insurance Agency and a New York Life Company.