Disclosure: We scrutinize our research, ratings and reviews using strict editorial integrity. In full transparency, this site may receive compensation from partners listed through affiliate partnerships, though this does not affect our ratings. Learn more about how we make money by visiting our advertiser disclosure.

Not everyone has the option of using a 401(k) plan to save for retirement, because many employers don’t offer these plans for their workers. Fortunately, there are several other options.

According to the U.S. Census Bureau, only 34.6% of working-age Americans had a 401(k) or equivalent employer-sponsored retirement account in 2020. So if your employer doesn’t provide a 401(k) or you’re self-employed, you’re not alone—but you do need to find another way to save for retirement.

The good news is: If you’re one of the many people in this country who doesn’t have access to a 401(k) plan, you can still squirrel away money for your golden years.

In fact, even if you have a 401(k) account, you still might want to use something else to increase your annual contribution limits, improve your investing flexibility, or earn more tax benefits. That’s why some people have a 401(k) account as well as other retirement savings—to maximize their tax advantages and the amount of money they’ll have when they retire.

So, if you don’t have access to a 401(k) plan, or you’re looking for ways to supplement your 401(k) savings, the accounts to use instead of a 401(k) plan listed below can help you reach your retirement savings goals. If you see any options you like, work with your financial advisor to come up with an overall retirement plan that works for you.

What Is a 401(k) Plan?

retirement target date 401k ira

A 401(k) plan is a tax-advantaged account offered by businesses to help eligible employees save money for retirement. Employees who choose to participate in the plan can contribute to their personal 401(k) account, up to the annual contribution limit.

For 2023, the annual limit for most people is $22,500 ($23,000 in 2024). However, if you’re at least 50 years old, you can contribute an additional $7,500 in “catch-up” contributions, for a total of $30,000 ($30,500 in 2024).

Investment options for 401(k) funds are typically limited. You’ll usually have a list of mutual funds (including target-date funds), and on rare occasions, a few exchange-traded funds (ETFs) to choose from. But don’t expect to invest in individual stocks, bonds, precious metals, and the like with a 401(k) plan.

There are two types of 401(k) plans: traditional 401(k) plans and Roth 401(k) plans. The main difference between the two is when you pay taxes on the money in the account.

WealthUp Tip: Many 401(k) plans include an employer match up to a predetermined percentage or dollar amount. It’s always worth contributing to a 401(k) up to the matching amount, since the match is effectively “free money.”

Traditional 401(k) Plans

retirement nest egg IRA 401k

With traditional 401(k) plans, contributions to your account aren’t included in taxable income (thanks to a tax deduction). Money in the account grows tax-free, but tax is eventually paid when you withdraw funds from the account.

In addition to any income tax due, money taken out of a traditional 401(k) before you turn 59½ years old is generally subject to a 10% early withdrawal penalty (although there are exceptions). Once you turn 59½, there’s no penalty, but distributions are still subject to income tax.

When you turn 73, you must begin taking a certain amount of money out of a traditional 401(k) each year. These withdrawals are called required minimum distributions (RMDs). Beginning in 2033, RMDs won’t be mandated until you turn 75.

Roth 401(k) Plans

retirement savings SEP Roth IRA

There’s no tax deduction for contributions to a Roth 401(k) account, so you pay tax on the amount contributed in the year the contribution is made. However, once that money is in your Roth 401(k), it grows tax-free, and you don’t pay any tax when you withdraw the funds in retirement.

How Much to Save for Retirement by Age Group [Get on Track]

With a Roth 401(k), you can withdraw your contributions at any time without having to pay tax or the 10% early withdrawal penalty. However, income tax and the 10% penalty generally apply to earnings taken out of the account if you aren’t 59½ years old or the account isn’t at least five years old.

How to Roll Over 401(k) Accounts [Which Option Is Best?]

Currently, RMDs from a Roth 401(k) account are generally required when you turn 73 years old. However, starting in 2024, RMDs will no longer be required from Roth 401(k) accounts.

Can I Retire at 60 with $500K? [YES! See Examples of How]

Alternatives Options To 401(k) Workplace Plans

nest egg retirement

Our list of the best alternatives to 401(k) plans can be divided into two groups.

The first group includes tax-advantaged investment accounts. With these alternatives, there are tax breaks when money is contributed to the account and/or when the money is withdrawn in retirement. In the meantime, money in the account grows on a tax-deferred or tax-free basis.

The investment options are much more varied with these accounts, too. Depending on the account, you can invest in individual stocks, bonds, money market funds, certificates of deposits (CDs), cryptocurrency, precious metals, art, real estate, and more.

The second group includes investment options that don’t necessarily offer a tax break (although they might), but they can still help you save enough money to spend when you reach retirement age. They’re particularly useful when paired with a traditional retirement savings plan.

And now, here’s our list—beginning with the tax-advantaged retirement accounts, where we include information on contribution limits and distributions from the account (including RMDs).

Best CD Alternatives to Capture Interest With Low Risk

1. Traditional Individual Retirement Arrangement (IRA)

IRA contribution limits

A traditional IRA is a tax-deferred retirement account where you don’t pay taxes on the money in the account until you withdraw funds from it. Depending on your filing status and income, your contributions might be fully or partially deductible.

Contribution limits

For the 2023 tax year, the annual contribution limit for a traditional IRA is $6,500 ($7,500 if you’re 50 or older). This limit is for all IRAs you own (including Roth IRAs). You can sock away a bit more in 2024: $7,000 ($8,000 if you’re 50 or older).


You can take distributions from a traditional IRA at any time, but it will count as taxable income. If you’re under age 59½, distributions are also subject to a 10% early withdrawal penalty (exceptions apply).

RMDs are required once you reach age 73.

What is an IRA and How Does it Work?

2. Roth Individual Retirement Account (IRA)

roth ira note under magnifying glass

There’s no tax deduction for contributions to a Roth IRA. However, you’ll benefit from tax-free growth on your earnings, and you don’t have to pay any additional taxes when you make withdrawals during retirement.

Roth IRA vs. 529 Plan: Which Is Better For College Savings?

To contribute to a Roth IRA, your income must be below a certain amount. For 2023, you can’t contribute anything to a Roth IRA if your modified adjusted gross income (AGI) for the tax year is:

— $228,000 or more if your filing status is married filing jointly or surviving spouse ($240,001 or more in 2024)

— $153,000 or more if your filing status is single, head of household, or married filing separately and you didn’t live with your spouse at any time during the year ($161,001 or more in 2024)

— $10,000 or more if your filing status is married filing separately and you lived with your spouse at any time during the year

Contribution limits

The 2023 annual contribution limit for a Roth IRA is $6,500 ($7,500 if you’re at least 50 years old) or your earned income for the year, whichever number is lower. Anyone who has both traditional and Roth IRAs is limited to $6,500 (or $7,500) for both accounts in total. The same limits apply in 2024 to Roth IRAs as Traditional IRAs: $7,000 limit ($or $8,000 if 50 or older).

Retirement Plan Contribution Limits and Deadlines for 2023

However, the maximum annual contribution for a Roth IRA is phased-out if your income is within a certain range. For 2023, your annual contribution limit is gradually reduced to zero if your modified AGI for the tax year is:

— $218,000 to $228,000 if your filing status is married filing jointly or surviving spouse ($230,000 to $240,000 in 2024)

— $138,000 to $153,000 if your filing status is single, head of household, or married filing separately and you didn’t live with your spouse at any time during the year ($146,000 to $161,000 in 2024)

— $0 to $10,000 or more if your filing status is married filing separately and you lived with your spouse at any time during the year


Contributions to a Roth IRA can be withdrawn at any time tax free and with no penalty. However, earnings withdrawn before age 59½ are generally subject to a 10% penalty (with exceptions). The penalty might also apply if you haven’t had a Roth IRA for at least five years.

Roth IRA vs. 529 Plan: Which Is Better For College Savings?

Unlike most retirement accounts, RMDs aren’t required from a Roth IRA. Withdrawals are only required after the death of the owner.

WealthUp Tip: You can contribute to both a traditional IRA and a Roth IRA as long as you stay within the joint contribution limit. However, if you want to focus on just one type of IRA, opt for a traditional IRA if you expect to be in a lower tax bracket in retirement and a Roth IRA if you expect to be in a higher tax bracket during retirement. That way, you’ll save on taxes when your tax rates are highest.

Best Investments for Roth IRA Accounts

3. Simplified Employee Pension (SEP) IRA

sep ira magnifying glass

Business owners and self-employed people can use a SEP IRA to save for retirement. For a business, only the business owner can put money in the separate SEP IRA accounts required for each eligible employee (although employees can make their own investment decisions).

Contributions to a SEP IRA are deductible. It’s also a tax-deferred retirement account, meaning that money in a SEP IRA isn’t subject to income tax until withdrawals are made in retirement. SEP IRAs also have higher annual contribution limits than many other types of retirement accounts.

Contribution limits

There are contribution limits for SEP IRAs. For 2023, employer contributions to a SEP IRA can’t be more than $66,000 ($69,000 in 2024) or 25% of the employee’s compensation, whichever is lower. Catch-up contributions for workers who are at least 50 years old aren’t allowed. Employers must contribute the same percentage to all eligible employees’ retirement savings.


Distributions from a SEP IRA can be taken at any time, but withdrawals taken before the account holder turns 59½ years old are subject to a 10% penalty, in addition to taxes.

RMDs are required once the account holder reaches age 73.

SEP IRA vs. Roth IRA: What’s the Difference?

4. Savings Incentive Match Plan for Employees (SIMPLE) IRA

simple ira retirement savings

A SIMPLE IRA is an excellent retirement account option for employers with 100 or fewer employees. Both the employer and workers can contribute to SIMPLE IRAs. A self-employed person can also set up a SIMPLE IRA.

9 Best Charles Schwab Alternatives

Employers can deduct contributions to a SIMPLE IRA, while employee contributions are excluded from gross income for the year the contribution is made. Earnings grow tax-deferred, so they’re not taxed until you begin making withdrawals in retirement.

Contribution limits

The maximum contribution an employee under aged 50 can make to a SIMPLE IRA is $15,500 for 2023 ($16,000 in 2024). If the employer’s plan allows catch-up contributions, a worker aged 50 or older can make additional contributions in 2023 of up to $3,500 (for a total of $19,000, or $19,500 in 2024).

Should You Max Out Your 401(k) Each Year or Invest Elsewhere?

If a worker also participates in another employer plan that year, his or her total salary reduction amount can’t exceed $22,500 ($30,000 for workers who are at least 50 years old, or $23,000 and $30,500, respectively, in 2024).

The employer is typically required to match a worker’s contributions on a dollar-to-dollar basis up to 3% of the employee’s contribution. An employer can opt for a matching contribution of less than 3%, but that can be done no more than two out of five years and must be at least 1%. In this situation, employees must be notified of the lower match within a reasonable period prior to the 60-day election period for that calendar year.

How to Get Free Money Now [15 Ways to Earn Money]

Alternatively, instead of a match, an employer can make contributions of 2% of every eligible employee’s compensation (up to $330,000 for 2023, or $345,000 in 2024). These contributions must be made, regardless of whether the employee makes his or her own contributions.


No matter what your age, withdrawals from a SIMPLE IRA are taxed as income. If you make withdrawals before age 59½, you’re subject to an additional 10% penalty. The penalty jumps to 25% if you take a distribution within the first two years of participating in the plan.

RMDs are required beginning at age 73.

Best Target-Date Funds: Schwab, Fidelity and T. Rowe Price

5. Health Savings Account (HSA)

hsa rollover health savings blocks

An HSA is a wonderful supplemental retirement account with three major tax advantages. First, contributions are either tax deductible (if you open the account yourself) or excluded from your gross income (if the account is through an employer).

Second, money in an HSA grows tax free.

How to Invest HSA Funds [Level Up Your Retirement Savings]

Third, you get tax-free withdrawals at any time if the money is used for qualified medical expenses. Once you reach age 65, you can take withdrawals out for any reason with no penalty, but the withdrawn funds are taxed as ordinary income if the money isn’t used for medical expenses.

However, not everyone can contribute to an HSA. You’re only eligible if you don’t receive Medicare, aren’t covered under any disqualifying health coverage, and aren’t claimed as a dependent on someone else’s tax return. You also must be enrolled in a high-deductible health plan.

What you’re allowed to invest in can vary based on your HSA. Some providers allow you to invest in various asset classes, including stocks, bonds, mutual funds, and ETFs. Others have a more specific set of investment options.

Beginner’s Guide to Fidelity Target-Date Funds

Contribution limits

For 2023, you can contribute up to $3,850 ($4,150 in 2024) to an HSA if you only have health insurance coverage for yourself. The maximum contribution is $7,750 if you have family coverage ($8,300 in 2024). You can contribute an additional $1,000 in “catch up” contributions if you’re at least 55 years old by the end of the year.


You can take money out of an HSA at any time for qualified medical expenses without paying taxes. Distributions not spent on qualified costs are taxed and, if you’re not yet 65 years old, hit with a 20% penalty.

HSAs aren’t subject to RMDs.

How to Use Your HSA for Retirement [Tax-Efficient Investing Tool]

6. Solo 401(k)

solo 401k vs SEP IRA

You can open a solo 401(k) if you’re a business owner with no employees or married to the only employee. This includes a self-employed person. A wider variety of investment options is typically available for a solo 401(k) plan than what’s offered with a “regular” 401(k) plan.

Best Vanguard Retirement Funds for a 401(k) Plan

Both traditional and Roth solo 401(k)s are available. With a traditional solo 401(k), contributions are deductible, and you pay tax when you withdraw money from the account. If you have a Roth solo 401(k) plan, there’s no tax deduction for contributions, but there’s generally no tax when you take the money out in retirement.

WealthUp TIP: Solo 401(k) plans are sometimes called one-participant 401(k) plans, individual 401(k) plans, or uni-401(k) plans.

Beginner’s Guide to Schwab Target-Date Funds

Contribution limits

Owners of a solo 401(k) can make contributions as both an employer and an employee. There are different annual contribution limits for employer and employee contributions, though.

The employee contribution can be up to the full amount of your earned income, as long as it doesn’t exceed the annual contribution limit. For 2023, the limit is $22,500 for people under age 50 ($23,000 in 2024), or $30,000 for people aged 50 and over ($30,500 in 2024).

5 Best Vanguard Retirement Funds [Start Saving in 2024]

The employer contribution can be up to 25% of your compensation.

Total contributions in 2023 can’t exceed $66,000 ($69,000 in 2024), or $73,500 for people who are at least 50 years old ($76,500 in 2024).


The treatment of distributions depends on whether you have a traditional or a Roth solo 401(k) plan.

With a traditional solo 401(k), withdrawals during retirement are taxed as regular income. If you make withdrawals before age 59½, you might also owe a 10% penalty.

7 Monthly Dividend Stocks for Frequent, Regular Income

RMDs from a traditional solo 401(k) account are mandatory once you reach age 73.

If you have a Roth solo 401(k) account, withdrawals are tax free if the account has been open for at least five years and you’re at least 59½ years old. However, if the account is less than five years old or you’re younger than 59½, withdrawn earnings are generally subject to income tax and a 10% penalty (no tax or penalty is due on withdrawn contributions).

12 Dividend Kings for Royally Resilient Income

RMDs from a Roth solo 401(k) account are currently required when you turn 73. However, starting in 2024, RMDs will no longer be required from Roth solo 401(k) accounts.

Solo 401(k) vs. SEP IRA: What’s the Difference?

7. Cash Balance Defined Benefit Plan

money cash balance dividends

Business owners can set up a cash balance defined benefit plan to save for their own retirement, and the retirement of the company’s workers. As a defined benefit plan, the amount plan participants receive during retirement is fixed.

The 24 Best ETFs to Buy for a Prosperous 2024

The employees don’t have to contribute any of their own money to receive their retirement benefits under a cash balance defined benefit plan. Instead, all contributions are made by the company, and the employer also bears the investment risk with this type of plan.

Contributions are tax deductible and aren’t included in the employee’s gross income. Money in the account grows on a tax-deferred basis, so there’s no tax until the money is in the employee’s pocket during retirement.

Beginner’s Guide to Vanguard Target-Date Funds

Contribution limits

Cash balance defined benefit plans aren’t subject to traditional contribution limits. Instead, contribution limits vary depending on the employee’s age. In general, the limit increases as a worker ages.


The employee can choose to accept retirement benefits from a cash balance defined benefit plan as a lump-sum distribution at retirement, or the funds can be rolled over into an IRA.

People who leave a company before retiring can request a distribution of the vested account balance or roll the whole account into an IRA.

Taking the lump-sum distribution means 20% will be withheld for federal income tax. Plus, a 10% early withdrawal penalty generally applies if the recipient is not yet 59½ years old.

Tax continues to be deferred if the pension funds are rolled over into an IRA.

8. Taxable Investment Accounts

investment apps laptop happy freelancer

Now let’s explore a few options that aren’t tax-advantage accounts—starting with taxable investment accounts.

Any adult with a Social Security number or taxpayer identification number can open a brokerage account. There’s no annual income limit.

There’s also no contribution limit. You can invest as much money as you want, meaning the amount you can save for retirement is limitless. You’re never required to take distributions, either.

The 7 Best Value Stocks to Buy for 2024

Another advantage is that there’s a wide variety of investment options for taxable accounts. As with the IRA-based options discussed above, you can invest in mutual funds, ETFs, individual stocks, and much more with a taxable brokerage account.

The downside of a taxable investment account is that there are no tax advantages. The money you invest isn’t tax deductible and you have to pay taxes on earnings (including capital gains tax if capital assets are sold). For this reason, a taxable brokerage account shouldn’t be the first place you turn for a 401(k) alternative, but rather considered as an additional account after you have maxed out a tax-advantaged retirement account.

The 24 Best ETFs to Buy for a Prosperous 2024

9. Real Estate

real estate rental cash

Investing in real estate can be an excellent way to save for retirement. There are many ways to invest in real estate. For instance, you’re investing in real estate when you own a home or buy rental properties. You can also invest in a real estate investment trust (REIT) or real estate ETF within a brokerage account or IRA, among other accounts. There are even real estate crowdfunding platforms that make it easy to invest in real estate.

Each type of real estate investment comes with its own set of perks and pitfalls. For example, owning rental property comes with several potential tax write-offs, but it isn’t easy to liquidate this type of investment. Meanwhile, other real estate investments are more liquid, but have fewer tax breaks.

Best Banks for Real Estate Investors + Landlords

WealthUp Tip: Capital gains tax generally applies to the sale of real estate. However, if property is held for more than one year, lower tax rates for long-term capital gains apply.

As the real estate market is cyclical, you might not want this as your only 401(k) alternative in case the real estate market is temporarily down when you hit retirement. Still, it can be a lucrative addition to your overall retirement savings strategy.

Is Paying Cash for a Rental Property a Good Idea? What to Consider

10. Annuities

health insurance coverage paper family

Annuities can provide a guaranteed passive income, often backed by an insurance company, which can be very useful during retirement. You pay for an annuity upfront and then get payments in return for a specified length of time or for life.

Qualified annuities are funded with “pre-tax” dollars (taxes haven’t been paid yet), while non-qualified annuities are funded with “after-tax” dollars (taxes have already been paid). Both types of annuities offer tax-deferred growth, so you don’t have to pay income taxes on earnings until you start receiving payments.

Best Vanguard Retirement Funds for an IRA

When payments are made, the entire distribution from a qualified annuity is taxed as ordinary income. However, for non-qualified annuities, you pay taxes on the interest or earnings, but not the principal (since you were already taxed on that amount).

A downside of annuities is that they can have high administrative fees. Depending on the annuity, you might also be stuck receiving an amount that doesn’t keep up with inflation.

How Much Retirement Savings Is Enough?

annuity saving retirement money grow
When it comes to how much you need to set aside for retirement, the first thing you need to know is there’s no magic number for everyone. Retirement savings goals vary by person.

My goal is helping you figure out how to determine your own number.

5 Best Vanguard Dividend Funds [Low-Cost Income]

The amount of retirement income you will need depends on your planned retirement age, where you plan to live, and other factors. Fortunately, after asking yourself a few questions, you’ll be able to estimate realistic retirement goals.

Sir Arthur Conan Doyle’s famed sleuth, Sherlock Holmes, famously says, “To begin at the beginning.” In other words, if you want to know where you need to go to get where you want, you should begin at the beginning.

The Best Retirement Plans for 2024 [Workplace + Individual]

For this retirement savings exercise, though, I say we need the reverse—we’ll begin at the end and work our way backward. That way, we can set our desired outcome and understand what needs to happen now to get where we want later in retirement.

Use the following factors to more accurately determine how much you need to save for retirement.

5 Best Vanguard Retirement Funds [Start Saving in 2024]

Factor #1: Retirement Age

senior couple beach retirement savings account
When will you retire? If you’re hoping for an early retirement, you’ll need more money saved than someone who retires at the customary retirement mark (age 65). Likewise, retiring later generally means needing less money.

Your career path might make a significant difference in your retirement age. Does your job involve hard labor that will become more challenging as you age? Or do people in your profession often continue working past the standard retirement age?

Also consider your health, life priorities, and what’s realistic for your financial situation.

10 Best Long-Term Stocks to Buy and Hold Forever

Factor #2: What Lifestyle You Want in Retirement

senior grandparents grandson tablet retire

Many people plan to maintain roughly the same lifestyle as they have during their working years. Others work hard for decades so they can live more lavishly during retirement. Do your retirement goals include frequent travel? Do you want to treat yourself to a new car or home renovations? Retirees often spend a lot of time (and money!) spoiling grandchildren.

Make sure the retirement income you’re planning for is high enough that it won’t just cover the basics, but will let you have a little fun, too.

10 Financial Gifts for Babies, Kids & Grandkids [No More Toys]

Factor #3: Where You Want to Live

residential real estate apartments landlord

Both the city you plan to live in and the type of home you plan to stay in will affect how much money you need for retirement.

Those who currently live in a high-cost-of-living area and plan to stay there will need more money than those who plan to move to an area with a lower cost of living. If you own a large house and plan to downsize, that will help curb expenses.

However, if you rent, you should assume costs will rise over time and you might need a higher annual income for retirement than you expected. The same goes for anyone who plans to move to an expensive assisted-living facility.

6 Ways to Invest in Apartment Buildings [w/Minimal Effort!]

Factor #4: 4% Rule (Or Your Personalized Safe Withdrawal Rate)

inflation cpi consumer prices

The 4% Rule is the guideline that you should withdraw only up to 4% of retirement savings during your first year of retirement. After that, you should adjust the amount for inflation each year and withdraw that amount.

Pretend your total retirement investments are worth $2 million and you expect to earn an investment return of 5.5% annually. During your first year of retirement, you would withdraw up to $80,000.

Now imagine inflation rises to 4% that year. According to the 4% rule, the following year you should plan to withdraw up to $83,200.

Sticking to this rule should mean you will likely have enough money to handle 30 years of retirement.

However, this is one-size-fits-most advice. It isn’t tailored to your specific situation, and you shouldn’t rely on it blindly. It includes a lot of assumptions about your retirement plans that aren’t necessarily true for you.

Even the creator of the rule, Bill Bengen, believes the 4% rule is outdated. (FYI, he now thinks it’s safe to pull more money in retirement—up to 5%. However, others think it should be less than 4%, so take all of this with a grain of salt.)

Based on your unique circumstances, you might need to withdraw more or less from your retirement savings to live the retirement you want.

How Much Should I Contribute to My 401(k)?

Factor #5: Budget for 80% of What You Currently Make

retirement insurance annuities couple

During retirement, you’ll need roughly 80% of your pre-retirement annual income, provided you aren’t planning on upping your lifestyle.

For instance, if your current annual salary is $80,000, you should aim to save enough to generate at least $64,000 in retirement income per year for the number of years you expect to be retired.

Why only 80%, not 100%? For one, currently you’re stashing a good chunk of every paycheck into a retirement savings account, right? You won’t be setting that money aside once you’re retired.

Hopefully, you’ll also pay off your house, student loans, and other consumer debt before retiring. You might also have lower transportation expenses (from no longer commuting to work), you may be in a lower tax bracket (meaning you’ll owe less in taxes), you’ll be receiving Social Security, and more.

SEP IRA vs. Roth IRA: What’s the Difference?

WealthUp’s Winningest Tech Stocks for 2024

best tech stocks to buy

The technology sector is always in a state of rapid change, so finding the best tech stocks for any year is no easy task.

So, how do you separate the best tech stocks to buy now from the fad stocks trading on short-lived news trends? And how do today’s small technology stocks become tomorrow’s tech giants? We’ll discuss that in our overview of the best tech stocks for 2024.


10 Best Long-Term Stocks to Buy and Hold Forever

best long term stocks to buy and hold forever

As even novice investors probably know, funds—whether they’re mutual funds or exchange-traded funds (ETFs)—are the simplest and easiest ways to invest in the stock market. But the best long-term stocks also offer many investors a way to stay “invested” intellectually—by following companies they believe in. They also provide investors with the potential for outperformance.

So if you’re looking for a starting point for your own portfolio, look no further. Check out our list of the best long-term stocks for buy-and-hold investors.

About the Author

Riley Adams is the Founder and CEO of WealthUp (previously Young and the Invested). He is a licensed CPA who worked at Google as a Senior Financial Analyst overseeing advertising incentive programs for the company’s largest advertising partners and agencies. Previously, he worked as a utility regulatory strategy analyst at Entergy Corporation for six years in New Orleans.

His work has appeared in major publications like Kiplinger, MarketWatch, MSN, TurboTax, Nasdaq, Yahoo! Finance, The Globe and Mail, and CNBC’s Acorns. Riley currently holds areas of expertise in investing, taxes, real estate, cryptocurrencies and personal finance where he has been cited as an authoritative source in outlets like CNBC, Time, NBC News, APM’s Marketplace, HuffPost, Business Insider, Slate, NerdWallet, Investopedia, The Balance and Fast Company.

Riley holds a Masters of Science in Applied Economics and Demography from Pennsylvania State University and a Bachelor of Arts in Economics and Bachelor of Science in Business Administration and Finance from Centenary College of Louisiana.