In this article, we will be taking a look at the 10 Best Long-Term Investments for Kids.
By late 2025, long-term investing for children has evolved from simple college savings into a full “cradle-to-retirement” wealth-building ecosystem. This shift is driven by new legislation, most notably the One Big Beautiful Bill Act (OBBBA), as well as expanded flexibility in traditional tax-advantaged accounts.
Youth-focused investing has continued to grow rapidly. As of June 30, 2025, assets held in 529 plans and ABLE accounts totaled approximately $568 billion across 17.3 million accounts, up from $508 billion as of mid-2024. The average 529 account balance is now around $30,960, reflecting both increased adoption and higher contribution levels.
A defining trend in youth savings is the “Roth‑ification” of 529 plans. Under new rules from the SECURE Act 2.0, families can roll over up to $35,000 lifetime from a 529 plan into a Roth IRA for the same beneficiary, provided the account has been open for at least 15 years. This change transforms 529 plans into long-term wealth-building tools, reducing the risk of unused education funds. Note that annual Roth IRA contribution limits still apply, and only contributions held in the account long enough and backed by earned income are eligible for rollover.
The most notable 2025 innovation is the creation of “Trump accounts” under the One Big Beautiful Bill Act (OBBBA). For children born between January 1, 2025, and December 31, 2028, the federal government will provide a one‑time $1,000 seed contribution when a Trump account is established. These accounts are designed to grow tax‑deferred and are invested in low‑cost U.S. index funds. Families and others can contribute up to $5,000 annually, and employers can make nontaxable contributions up to $2,500 per year on behalf of a child. Accounts generally begin accepting contributions in mid‑2026 and have rules similar to traditional retirement accounts, with withdrawals typically restricted until the beneficiary reaches adulthood.
Analysts forecast the global child and youth services market could grow about 8% annually, surpassing $235 billion by 2032. Federal 529 plan limits for K–12 rise to $20,000 in 2026. AI-driven personalized investing tools are expanding (EY), while long-term trends favor U.S. large-cap equities and technology.
With that said, let’s take a look at the best long term investments for kids.
Pixabay/Public Domain
Our Methodology
For our methodology, we began by filtering stocks with stocks that have returned over 40% in the past 5 years and that have been paying dividends for at least 10 consecutive years. Finally, we picked the top 10 stocks and ranked them based on their 5-year total returns in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Here is our list of the 10 best long term investment for kids.
10. Altria Group, Inc. (NYSE:MO)
Total Return (5Y): 40.54%
Altria Group, Inc. (NYSE:MO) stands tenth among the best long-term investments.
TheFly reported on December 22 that Goldman Sachs analyst Bonnie Herzog highlighted a key positive catalyst for MO following regulatory progress in its modern oral nicotine portfolio. The FDA granted marketing authorization on December 21, 2025, for six on! PLUS nicotine pouch products manufactured by MO’s subsidiary, Helix Innovations LLC.
This approval, the first under the FDA’s new pilot program for expedited Premarket Tobacco Product Applications (PMTAs), supports Altria Group, Inc. (NYSE:MO)’s “Moving Beyond Smoking” strategy by offering a differentiated, “soft-bodied” pouch experience in multiple flavors and strengths (6mg and 9mg), enhancing its competitiveness against dominant rivals like ZYN.
Herzog noted that this regulatory milestone could serve as a meaningful growth driver, positioning the corporation to expand its high-margin oral nicotine portfolio. The approval aligns with the company’s broader operational pivot toward reduced-risk products while maintaining traditional revenue streams.
In contrast, BofA Securities analyst Lisa Lewandowski maintained a Buy rating on MO but lowered the price target to $64 from $66 on December 19, citing evolving consumer trends and pressure from the illicit e-vapor market.
Altria Group, Inc. (NYSE:MO) is a major American tobacco and nicotine products company headquartered in Richmond, Virginia. It is one of the largest producers and marketers of smokeable and oral tobacco products in the United States, selling iconic brands such as Marlboro cigarettes, Black & Mild cigars, and smokeless products like Copenhagen and Skoal.
9. Kite Realty Group Trust (NYSE:KRG)
Total Return (5Y): 60.56%
Kite Realty Group Trust (NYSE:KRG) is one of the best long-term investments.
TheFly reported that on December 29, KRG announced that its Board of Trustees declared a special cash dividend of $0.145 per share of common stock. The dividend is scheduled to be paid on January 16, 2026, to shareholders of record as of the close of business on January 9, 2026. The company emphasized that this special dividend does not affect its regular quarterly dividend policy, which remains subject to the discretion of the Board.
Separately, on December 16, Jefferies analyst Linda Tsai maintained a Hold rating on Kite Realty Group Trust (NYSE:KRG) and raised the price target to $24.00 from $23.00, reflecting modest confidence in the company’s fundamentals and capital allocation amid mixed sector dynamics.
This action followed recent strategic moves by KRG to improve its portfolio quality. On December 8, 2025, the company completed approximately $474 million in property dispositions, selling a group of large-format power and community centers. Management cited these sales as a way to exit lower-growth assets, strengthen the balance sheet, and redeploy capital into higher-quality opportunities, a theme analysts view as supportive of long-term positioning even if near-term growth is uneven.
Kite Realty Group Trust (NYSE:KRG) is a U.S.-based real estate investment trust (REIT) headquartered in Indianapolis, Indiana. The company is a premier owner, operator, developer, and redeveloper of high-quality, open-air shopping centers and mixed-use retail assets, with a portfolio primarily anchored by grocery stores in high-growth Sun Belt and strategic gateway markets across the United States.
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