S
ome Americans believe real estate and gold are the best long-term investments, but advisors disagree. A Gallup report found that 37% of surveyed U.S. adults consider real estate their top choice for the long haul, a figure unchanged from last year. Gold was second, with 23% of respondents, five points higher than in 2024.

    Financial advisors caution against getting caught up in the hype surrounding these investments. "People are always chasing what's hot, and that's the stupidest thing you could do," said Carolyn McClanahan, a certified financial planner. Lee Baker, another CFP, noted that investors often prefer tangible assets like real estate and gold because they can see and touch them.

    While gold prices have risen this spring, hitting an all-time high of over $3,500 per ounce in late April, its popularity as a long-term investment remains below the record high of 34% seen in 2011. Real estate has also gained interest due to high demand and accelerating prices, but experts say stocks are a better bet.

    The annualized total return for S&P 500 stocks is 10.29% over the past 30 years, compared to 8.78% for real estate and 7.38% for gold. Stocks are also diversified assets, spreading out cash across thousands of companies, whereas gold and real estate are concentrated investments.

    If you want exposure to real estate or gold, experts recommend using investment vehicles like REITs (real estate investment trusts) or ETFs (exchange-traded funds). For example, you can buy shares of a publicly traded REIT or invest in a REIT mutual fund or ETF. This allows you to diversify your portfolio and avoid the risks associated with individual properties.

    Similarly, instead of buying physical gold, consider investing in gold through an ETF. This way, you get the value of the return without having to deal with storing or insuring physical gold.