What's the best way to spend your money? Some might say spend it on things you love. Others may counter- use that money to make more money.
The secret is out. There are many ways to make money but there is one best way to do it.
So, if it's money that you love, a report titled, "The Rate of Return on Everything" is just what the doctor ordered.
The researchers exhaustingly investigated 16 wealthy nations over a 150 year time period and have released their findings.
These are the components:
The time period: 1870 - 2015
The investment vehicles: treasury bills, treasury bonds, equities, residential housing
The questions studied:
What is the aggregate real rate of return in the economy? Is it higher than the growth rate of the economy and, if so, by how much?
Is there a tendency for returns to fall in the long-run?
Which particular assets have the highest long-run returns?
The authors teased, "We answer these questions on the basis of a new and comprehensive dataset for all major asset classes, including—for the first time—total returns to the largest, but oft-ignored component of household wealth, housing."
I'll spare you the cost of downloading the report, let me just blab the results of their findings. The best investment vehicle over time is housing.
Now allow me to shout it from the rooftops.
If you like investing, housing, and rooftops: I'm Chuck Willman, an Investment Real Estate Specialist who has helped thousands of investors purchase more than $1 billion in real estate in the past decade. Yes. That's a "B" in billion. It was a crazy market and our investors bought more than 10,000 properties during the market downturn.
Photo by João Silas on Unsplash (unprofessional word art added by me. Sorry, João)
Headline photo by Ramdan Authentic on Unsplash