Investing in anything on this chart is WAY better than leaving your money sitting in cash. But stocks are the obvious winner.

Which stocks do you buy? All of them. And you can do that easily by buying an index fund. Owning them all will guarantee that you own the winners. 

If stocks are SO good, should you always own 100% stocks and not worry about anything else? Probably not. Stocks earn the most but the journey is very bumpy. As you get older and plan to withdraw money for retirement, you’d want some more stability in your investments. In that case you can diversify by holding bonds as well. 

But what about investment real estate? Yes, that can potentially be a great investment as well. But since that requires a lot of work and time, it is not purely passive (stocks don’t call you at 2am with plumbing problems). This chart covers the price appreciation of real estate over time, but does not factor in potential rental income or leverage. These can help magnify the returns of real estate. 

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Vivi & Shane