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.
For homes, we are showing price appreciation over time. So this is a representation of the home you live in and not investment real estate. It does not factor in potential rental income, leverage, etc. These can help magnify the returns when investing in real estate. Buying rental properties can be a great investment, but can also require a lot of work and time.
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