The road to economic independence is paved with income-producing assets.
And not just the kind you can buy at Robinhood.
“Most investors rarely venture past stocks and bonds when creating an investment portfolio. And I do not blame them. These two asset classes are quite popular and are good candidates for building wealth, ”wrote Nick Maggiulli, COO of Ritholtz Wealth Management LLC.
But that, of course, is “just the tip of the iceberg,” and Maggiulli said in a post on her “Of Dollars and Data” blog that getting serious about growing prosperity means throwing a wider net.
In that spirit, he came up with seven choices in addition to stocks and bonds for the best income-producing assets available to all. Here is a summary of his list:
Some of them are obviously easier to dip into than others. And as you can see, stocks – simple and historically strong – are still at the top of the list.
“If I had to pick an asset class to manage them all, stocks would certainly be,” Maggiulli wrote in her post Tuesday. “Is it, of course, possible that the 20th century was a fluke and future stock returns are doomed? Yes, but I would not bet on it. ”
In this climate, investing heavily in stocks is not for the faint of heart. He explained that investors should expect the market to take a 50% + hit a few times per day. Century with 30% decline every few years.
Therefore, doubling in agricultural land, holiday properties and / or franchises can give investors some protection in a market that many expect will give wild fluctuations in the coming months.
See Maggiulli’s detailed plan for more information on how to play these investments.
At last check, the stock market was a pretty good place to be with the Dow Jones Industrial Average DJIA,
technically heavy Nasdaq Composite COMP,
and S&P 500 SPX,
everyone trades higher in Tuesday’s session.