We all want to create wealth for ourselves and our children. One of the ways to do this is by making investments. An investment is an asset that we buy hoping that it will create some income for us or increase in value over time. Once it increases in value, this asset can be sold at a higher price thus creating a profit. There are two main types of investments. These are long term and short term investments. Also known as a current asset, a short term investment is one that can be sold for cash in less than one year. Short term investments contain assets that can be liquidated quickly and easily. On the other hand, a long term investments is an asset that matures in more than 10 years. This type of investment is cultivated over this long period of time before it is liquidated. Long term investments can act as security for your wealth portfolio. They are able to weather volatile markets and return good value too. In this way, they are a safe way to invest your money. Looking to increase your wealth over time? Here are the 10 best long term financial investments that anyone can make.

1. Index Funds

An index fund is a special mutual fund whose portfolio is designed such that it matches the individual assets indicated in a specific market index. An example of such an index is the Standard & Poor's 500 Index. This type of investment is strong and diversified. The index fund holds a variety of companies. As such, it spreads your risk in such a way that the success or failure of one company has very little effect on your overall index fund. The stock market always exhibits long term growth. Therefore, index funds also have positive returns eventually. They are a good long term investment.

2. Bonds

A bond is a debt investment where you loan some money to a corporate or government entity for a specific period of time. This loan may have a fixed or variable interest rate. After this period of time is over, the entity returns your loan with interest on it. In this way, you make a profit. Bonds are less volatile than stocks. Those that have a maturity time of more than 10 years yield better profits than those that have a lower maturity time. While investing in bonds, pick the ones that are guaranteed. This way, you are sure of getting your money's worth. Bonds are well known to be an important part of a diversified, long-term investment portfolio. If you want to watch your money grow steadily over a long period of time, bonds are the investment to make.

3. Blue Chip Stocks

A blue chip company is one that has a good reputation, is financially strong, has healthy revenues and pays investors some dividends. Examples of such companies include Wal-Mart, Intel and General Electric. Stocks in such a company are known as blue chip stocks. Interestingly, they are named after the chips with the highest value in a game of poker. Blue chip stocks offer a good opportunity for long term investment. Since they are shares in dependable companies that exhibit long term growth, they will give you a healthy return after you cash out. As long as you pick the right blue chip stocks, you can include this intrument in your long term investment portfolio.

4. Properties and real estate

Property has long been recognized as one of the best ways to invest for long term gains. You can buy land, residential or commercial real estate to make this investment. Property is known to increase in value over time. An investment that you make in property today can increase in value exponentially over the next ten years. Despite the long term benefits, you should exercise caution as you invest in property. The real estate market is prone to crashing. Therefore, do your research well before you make this investment.

5. Dividend Reinvestment Plans (DRIPs)

This is a very interesting and rewarding long term investment instrument. DRIPs are designed in such a way that they can grow your wealth steadily over time. In this type of investment, you begin by buying some shares in a company. After that, you make an arrangement such that instead of giving you dividends in form of cash, the company re-invests your dividends in more of their own shares for you. You can let this process go on until you want to sell your shares or opt out of the DRIP and accept your dividends directly.

6. Mutual Funds

A mutual fund is a collection of investments that have been pooled together into a one main fund. This is done by a financial manager. If they have exceptional management skills and a good reputation, the mutual fund is viewed to have a bright future and attracts investment. One of the main characteristics of a mutual fund is diversification. Once you invest in a mutual fund, you have spread your risk because the fund contains a variety of products. In this way, you protect your investment and boost the possibility of growth. Mutual funds are a good long term investment.

7. Gold

Gold has been admired, sought, fought over and invested in for millenia. This precious metal is a measure of wealth for people and therefore is seen as a good investment vehicle. One of the most interesting characteristics of this instrument is that it always appreciates in value over time. However, this growth is slow and steady. Thanks to its features, gold is literally a perfect long-term investment option.

8. Art

Are you a high-net worth investor looking to make a long term investment? Art is an ideal choice for you. With the assistance of an art specialist, you can purchase some strategic pieces that will give you a handsome return in the long term. This instrument of investment is different from the rest in one way. You can display it in your home or your business for all to see. Art is a reliable long term investment.

9. Special collections

After putting your money in all the right financial instruments, you can consider this form of investment. It involves purchasing and maintaining a collection of valuable items. Examples of these are classic cars or even wine. These investments are known as hard assets and have exceptional long term benefit. Prior to making an investment in these assets, you should always speak to a relevant expert. They will guide you on the pieces that you should buy. If you have a passion for collecting, you can turn it into a successful long term investment option.

10. Your 401 K

This is one of the top long term investments today. It is named after the specific tax code which regulates them. A 401 K is specifically designed to be cashed in during retirement after decades of working and investing. The best way to approach the 401 K investment is to get in early and allow it to grow slowly over the extent of your life. After you retire, you can redeem it and enjoy the fruit of your labor. One of the positive characteristics is that you get to enjoy special tax benefits as you invest in your 401 K.

The Important Take Away

Long term investments can be highly beneficial for you. However, you need to perform specific activities if you want to gain from them. You should be patient. These investments take longer than 10 years to mature. You should also be stable. Don't let the market fluctuations scare you into selling your position in these investments. Finally, you should monitor them. Enlist the help of professional financial advisors so as to get the most out of your long term investments. The investments mentioned above ensure that your money works for you for a long time to come.