Great question – and really “the best” can only be defined relative to your overall objective.⁣
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For the purposes of this article we will keep things simple and talk purely about financial investments.⁣
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Specifically traditional paper assets (stocks and bonds) which form the backbone of the retirement planning of most individuals.⁣
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We’ll also define long term investment as over 10 years. This is the most common timeframe for retirement planning.⁣
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So lets look at the vehicle that the historical data would say has delivered the highest returns.⁣
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This would correspond to accelerating the date at which we can retire.⁣
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If retirement is defined as the point at which we start CHOOSING to work rather than feel obligated to… then the sooner we have this the better.⁣
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Hence the more we accelerate this the better.⁣
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The below graph is interesting because it shows the growth in value of various asset classes since the year 1926.⁣
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You can see world equities have been the asset that has spent the majority of the time at the top.⁣
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Of course there is no guarantee that this will always be the case. However we certainly want the data on our side when it comes to such decisions.⁣
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If you can take emotional factors out of your investing and have a long term timeframe this is useful to know.⁣
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Of course there are a few more factors to consider when it comes to designing a portfolio for your retirement.⁣
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But its a good place to start.⁣
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*Not Financial Advice⁣
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Disclaimer: The content on this blog is meant for informational purposes only and does not constitute financial advice. Readers should seek guidance from a professional financial advisor before making any investment decisions.