The 7 Best Assets to Own To Build Wealth

Picture this: You wake up on a bright morning, feeling a sense of security and freedom. As you sip your coffee, you glance at your investment portfolio, knowing that your wealth is steadily growing. You’re no longer solely dependent on a paycheck or bound by financial constraints. Your assets are working for you, paving the way to financial independence. Sounds like a dream, doesn’t it?

In today’s world, where financial stability and prosperity are highly sought after, the question arises: What are the best assets to own to build long-term wealth? Whether you’re just starting on your financial journey or seeking to diversify your investment portfolio, understanding the power of strategic asset allocation can be the key to achieving your financial goals.

Join me on this insightful exploration as we uncover the best assets to own in the journey of wealth creation and preservation. In this article, I will cover how to make our money work harder, harness the potential of compounding growth, and how to ultimately build wealth and attain financial freedom.

Understanding which asset to own

One of the key elements in constructing a rewarding and passive income-generating portfolio is owning the right assets and building your investment arsenal. This can include traditional options like stocks, bonds, and real estate to alternative investments such as cryptocurrencies, precious metals, and more. In this article, I will delve into their characteristics, risks, and potential returns. By the end of this article, you will be equipped with the knowledge to make informed decisions on the best assets to own and secure your financial future.

Let’s start with the grandfather of them all; stocks.

1. Stocks: Building Wealth in the Market.

Stocks have long been a popular choice for investors seeking growth and income potential. They have also minted a multitude of millionaires and billionaires over the ages. Today, the 10 wealthiest people in the world attribute their wealth to their stock holdings.

So, why isn’t everyone making money investing in stocks? The hardest part about investing in stocks lies in creating a portfolio of stocks that can yield good returns. This process can be time-consuming and harbor various risks. That’s why just like Warren Buffett, I recommend investing in the S&P 500.

Since its inception, the S&P 500 which is the market benchmark has returned an average of 10% per year (compounded). This year alone, the S&P 500 is up about 14% compared to the current inflation rate of about 4% making stocks one of the best assets to own.

Graph of the S&P 500 showing stocks are the best assets to own
S&P 500 Index 90-Year Historical Chart. Source: Macrotrends

Types of Stocks to Own

There are many types of stocks. We shall look at the top 4 that I recommend. These stocks vary depending on earnings, company size, growth potential, and other factors. Let’s dive in!

  1. Income Stocks: Income stocks distribute a significant portion of their earnings as dividends to shareholders. These stocks can provide you with a regular income stream. Companies in sectors such as utilities, real estate, and consumer staples are often associated with income stocks. Examples of such stocks are 3M, AbbVie, Caterpillar, Chevron, Colgate-Palmolive, and many others. See my article about investing in income stocks for passive income to learn more.
  2. Growth Stocks: Growth stocks are companies that are expected to experience above-average growth rates in revenue, earnings, and market value. These companies often reinvest their earnings into expanding their operations, developing new products, or entering new markets. Growth stocks generally do not pay dividends, as the focus is on capital appreciation. Technology, biotechnology, and e-commerce companies are often considered growth stocks. Popular examples are Shopify, Block (CashApp’s parent company), and MercadoLibre among others.
  3. Value Stocks: Value stocks are companies that are considered undervalued relative to their intrinsic worth. Investors in value stocks seek to identify companies trading at a lower price compared to their fundamental value, often based on metrics like price-to-earnings (P/E) ratio or price-to-book (P/B) ratio. Value stocks may provide an opportunity for capital appreciation when the market recognizes their true value. Examples include Proctor & Gamble, Intel, Target, and Berkshire Hathaway.
  4. Blue-Chip Stocks: Blue-chip stocks are well-established, large, and financially stable companies with a history of reliable performance. These companies are typically leaders in their industries, have a strong market presence, and demonstrate stability even during economic downturns. Blue-chip stocks are often sought by investors looking for long-term investment opportunities with lower risk. Examples include Apple, Microsoft, and McDonalds.

See also: Common Investing Strategies You can Learn Today

Pros and Cons of Investing in Stocks

Owning stocks can have several advantages and disadvantages. Here are some pros and cons to consider:

Pros of owning stocks:

  1. Potential for high returns: Stocks have the potential to generate significant returns over the long term. Historically, stocks have outperformed many other investment options, such as bonds or savings accounts. By investing in well-performing companies, you can participate in their growth and benefit from capital appreciation.
  2. Ownership and voting rights: When you own stocks, you become a partial owner of the company. This ownership entitles you to voting rights and allows you to have a say in important company decisions, such as the election of board members or approving major changes.
  3. Dividend income: As described above, some stocks pay dividends, which are regular cash distributions to shareholders. Dividends can provide a steady stream of income and be particularly attractive for income-focused investors.
  4. Diversification: Investing in stocks allows you to diversify your investment portfolio. By spreading your investments across different industries and companies, you can reduce the risk associated with relying heavily on a single investment.
  5. Liquidity: Stocks are generally considered liquid investments, meaning they can be easily bought or sold on stock exchanges. This liquidity allows you to convert your investments into cash relatively quickly, providing flexibility and the ability to react to changing market conditions.

Cons of owning stocks

  1. Volatility and risk: The stock market can be highly volatile, and stock prices can fluctuate significantly in the short term. This volatility introduces risk, as the value of your investment can decrease, sometimes substantially. Investing in individual stocks carries more risk than investing in diversified mutual funds or index funds.
  2. Uncertainty and market unpredictability: It is challenging to predict the future performance of individual stocks or the overall stock market accurately. Economic conditions, company-specific factors, and unforeseen events can all impact stock prices, making it difficult to consistently make profitable investment decisions.
  3. Time and effort required: Successful stock investing often requires thorough research, analysis, and continuous monitoring of your investments. It can be time-consuming and requires a certain level of financial knowledge and expertise. If you are not willing to put in the effort or lack the necessary skills, it may be challenging to make informed investment decisions.

We have established that stocks are a good vehicle for creating and building wealth. So how do you invest or gain exposure to stocks? Personally, I recommend and am invested in the S&P 500 through the Vanguard low-cost ETF (VOO) which is also recommended by Warren Buffett. Buying the index regularly is a great way to shelter your hard-earned money from inflation and build wealth. Stocks also make equity funds and certain ETFs such as Vanguard some of the best assets to own if you are looking at income generation and capital growth.

See also: The Rule of 72: A Simple Guide to Building Wealth

2. Real Estate: Tangible and Profitable.

Real estate is another traditional and well-known asset that had to be included in this list. It is also by far the largest asset class in the world and has created more millionaires than any other asset class. That statistic is actually accurate!

What makes real estate one of the best assets to own? Investing in real estate offers a unique set of advantages, including steady cash flow, tax benefits, and the potential for long-term appreciation. You can invest in real estate through residential properties, commercial real estate, real estate investment trusts (REITs), and real estate crowdfunding platforms. Investment vehicles such as REITs have demonstrated returns of 9-12% while other vehicles such as vacation properties have shown returns of 12-15% making real estate one of the best assets to own.

REITs vs the S&P 500 showing real estate is one of the best assets to own

Real estate properties have also traditionally been considered a relatively safe investment option with property valuations rising significantly over time. The chart below shows the median sales price for houses sold in the US.

Home prices- median price USA. Increasing home prices validate that real estate is one of the best assets to own
Median Sales Price for US Homes. Source: St Louis Federal Reserve

Before investing in real estate, it’s important to gather knowledge and conduct thorough research to make informed investment decisions. Here are some key factors to consider:

  1. Market Research: Understand the local real estate market where you plan to invest.
  2. Investment Goals and Strategy: Define your investment goals and objectives.
  3. Financial Analysis: Conduct a thorough financial analysis of potential real estate investments.
  4. Property Type and Location: Consider the type of property that aligns with your investment goals.
  5. Financing Options: Evaluate financing options available to you.
  6. Due Diligence: Perform thorough due diligence on the property before making a purchase.
  7. Risk Management: Identify and manage potential risks.
  8. Legal and Tax Considerations: Understand the legal and tax implications of real estate investing.
  9. Exit Strategy: Have a clear exit strategy in mind before investing.

Pros and Cons of Investing in Real Estate

Investing in real estate can offer several advantages and disadvantages. Here are some pros and cons to consider:

Pros of investing in real estate:

  1. Potential for long-term appreciation: Real estate investments have the potential to appreciate in value over time. As demand for properties increases, particularly in desirable locations, the value of real estate can rise, allowing investors to generate capital gains when they sell the property.
  2. Rental income: Real estate investments can provide a steady stream of rental income. By owning residential or commercial properties, investors can earn regular cash flow from tenants’ rental payments.
  3. Diversification: Real estate can be an effective diversification tool for an investment portfolio. It tends to have a low correlation with other asset classes such as stocks and bonds, meaning its value may not move in sync with the broader market. Adding real estate to an investment portfolio can help reduce overall portfolio risk.
  4. Tangible asset with potential tax advantages: Real estate is a tangible asset that may offer tax advantages such as depreciation deductions, mortgage interest deductions, and the ability to defer capital gains taxes through 1031 exchanges (in some jurisdictions).
  5. Potential for leverage: Real estate investments can be financed through borrowing, allowing investors to control a large asset with a relatively small upfront investment. By using leverage, investors can amplify potential returns if the property value appreciates, resulting in increased equity.

Cons of investing in real estate:

  1. Illiquidity: Real estate investments are relatively illiquid compared to other investments such as stocks or bonds. It can take time to sell a property and convert it into cash. In situations where funds are needed quickly, the lack of liquidity in real estate can be a disadvantage.
  2. High upfront costs: Investing in real estate often requires a significant upfront investment. In addition to the purchase price, investors need to consider expenses such as property taxes, maintenance costs, insurance, and potential renovation or improvement expenses. These costs can be a barrier to entry for some investors.
  3. Market fluctuations and risk: Real estate markets can experience fluctuations in property values and rental demand. Economic downturns or changes in local market conditions can lead to decreased property values and rental income. Investing in real estate carries the risk of potential financial losses if market conditions deteriorate.
  4. Property management responsibilities: Owning and managing real estate properties can involve various responsibilities. Landlords need to handle tenant-related issues, property maintenance, repairs, and ensuring compliance with legal and regulatory requirements. Property management can be time-consuming and may require specialized knowledge or hiring professional property management services.
  5. Concentration risk: Investing in real estate ties up a significant portion of an investor’s wealth in a single asset or a limited number of properties. This concentration can increase risk compared to a diversified investment portfolio. If the real estate market or a specific property performs poorly, the investor’s overall financial position may be negatively affected.

Personally, I am invested in this asset class and consider it one of the best assets to own. I prefer REITs because they are an easier way to get exposure to various classes of real estate. While purchasing real estate, especially in this high-interest environment, it is critical to ensure that you do not drown in debt and are cash-flow positive. In addition, talk to real estate professionals to know you can maximize your return on investment.

3. Bonds: Fixed-Income Stability.

Now let’s look at good old bonds. Bonds are the second largest asset class in the world – only second to….. you guessed it…. real estate! Bonds are also one of the oldest asset classes dating back to 1693 when the first sovereign bond was issued by the Bank of England.

So, what are bonds? Bonds are debt instruments issued by governments, municipalities, and corporations to raise capital.

What makes bonds one of the best assets to own? Bonds are also considered one of the safest assets on the planet. Since the 1980s, bond yields have been on the decline as interest rates fell. Ever since the Fed made a stance to combat inflation by hiking rates, bond yields have risen significantly.

If you want to preserve your wealth, then bonds are one of the best assets to own. Though they might not yield as much as other assets on this list, bonds offer security and steady returns.

Bond yields showing bonds are among the best assets to own
10-Year Treasury Rate; 54-Year Historical Chart. Source: MacroTrends

Pros and Cons of Bonds

Like every other asset on this list, investing in bonds can offer several advantages and disadvantages. Here are some pros and cons to consider:

Pros of investing in bonds:

  1. Fixed income and regular cash flow: Bonds provide fixed income in the form of regular interest payments, usually paid semi-annually or annually. This makes bonds attractive to investors seeking a predictable cash flow stream and a steady source of income.
  2. Capital preservation: Bonds are generally considered less risky than stocks. When investing in high-quality bonds issued by stable entities such as governments or highly rated corporations, there is typically a lower risk of losing the initial investment amount. This makes bonds an appealing option for conservative or risk-averse investors focused on capital preservation.
  3. Diversification: Bonds can be an effective diversification tool for an investment portfolio. They tend to have a low or negative correlation with stocks, meaning their value may not move in sync with the broader stock market. Adding bonds to a portfolio can help reduce overall portfolio risk and potentially provide a hedge against equity market volatility.
  4. Relative stability: Compared to stocks, bond prices generally exhibit less volatility. Bonds’ fixed income nature and contractual obligations of issuers to pay interest and return principal at maturity contribute to their stability. This stability can help investors maintain a more predictable investment value and manage risk.
  5. Range of options: The bond market offers a wide range of options to suit different investor preferences. Investors can choose from government bonds, municipal bonds, corporate bonds, international bonds, high-yield bonds, and more. This variety allows investors to tailor their bond investments to align with their risk tolerance, income requirements, and investment goals.
  6. Lower volatility compared to stocks: Bonds generally exhibit lower price volatility compared to stocks. While bond prices can fluctuate based on interest rate changes and credit risk, the magnitude of price swings is often lower than that of stocks. This can be appealing to investors who prefer more stable returns and are less tolerant of market volatility.

Cons of investing in bonds:

  1. Lower potential returns: While bonds provide stability, they typically offer lower potential returns compared to stocks or other higher-risk investments. Bond returns are influenced by prevailing interest rates, and as interest rates rise, bond prices may fall, resulting in capital losses if the bonds are sold before maturity.
  2. Interest rate risk: Bonds are sensitive to changes in interest rates. When interest rates rise, bond prices tend to fall, and vice versa. This interest rate risk can affect the market value of existing bonds, especially those with longer maturities or lower coupon rates. Investors may face the risk of potential capital losses if they need to sell bonds before maturity.
  3. Inflation risk: Inflation erodes the purchasing power of future interest and principal payments. Fixed-rate bonds may be subject to inflation risk, as the interest payments and principal repayment may not keep pace with inflation over time. Inflation can reduce the real return of bond investments, impacting their overall value.
  4. Credit risk: Bonds carry credit risk, which refers to the potential for the issuer to default on interest payments or fail to repay the principal amount at maturity. Lower-rated or “junk” bonds have a higher likelihood of default compared to higher-rated bonds. Investors need to assess the creditworthiness of bond issuers and understand the associated risks.
  5. Liquidity risk: Some bonds may have limited liquidity, meaning they may be challenging to sell quickly or at a desired price. Less liquid bonds can carry higher transaction costs and may not be suitable for investors needing immediate access to their investment capital.
  6. Market risk: Bond prices can be influenced by broader market conditions, economic factors, and investor sentiment. Market fluctuations can impact the value of bond investments, particularly in times of economic uncertainty or market volatility.
  7. Complexity and research requirements: Bond investing can involve complexity, particularly when considering different types of bonds, credit ratings, and interest rate environments. Understanding the terms and features of specific bonds requires research and analysis. Additionally, assessing the creditworthiness and financial health of bond issuers can be challenging for individual investors.

With bonds, you can protect yourself from downturns but you also forego potentially higher returns. Before investing in bonds be sure to consider the time horizon and the creditworthiness of the issuer. To invest in bonds consider using bond funds such as Fidelity and Vanguard bond funds.

4. Mutual Funds/Money Market Funds: Liquidity and Stability.

Looking for better yield on your cash? Money market funds are the way to go. Traditional bank saving accounts have very low yields some as low as 0.1%. So why are money market funds one of the best assets to own? Money market funds are a type of mutual fund that invests in short-term debt securities with high credit quality and low-risk characteristics. They are designed to provide investors with a stable and relatively low-risk investment option while offering liquidity and preserving capital.

Money market funds can be suitable for investors who prioritize capital preservation, liquidity, and stability. They are commonly used as a cash management tool, a short-term investment option, or as a component of a diversified portfolio. Ever since the Fed started hiking rates, yields on cash invested in money market funds have skyrocketed from near zero in March 2022 to over 4.5% in June 2023.

Money Market rates rising making them one of the best assets to own
Source: St Louis Fed

With inflation hitting multi-decade highs, investors like you and me need a safe and relatively high-yield alternative to the meager rates we are getting on our savings in bank accounts. That’s where money market funds come in. They provide good liquidity (some even act as checking accounts), safety and better returns making them one of the best assets to own.

The graph below shows how new money has flowed into money market funds over the past couple of years. Interest rates and excess savings have been the primary driver of asset growth in money market funds.

Assets under management by money market funds trend
Source: St. Louis Federal Reserve

Pros and Cons of Money Market Funds

Even investing in money market funds has its own set of advantages and disadvantages. Here are some pros and cons to consider:

Pros of investing in money market funds:

  1. Stability and Capital Preservation: Money market funds are designed to provide stability and preserve capital. They invest in low-risk, short-term debt securities with high credit quality. The focus on low-risk investments aims to minimize the potential for losses and provide a relatively stable investment option.
  2. Liquidity: Money market funds offer high liquidity, allowing investors to easily convert their shares into cash. Investors can typically buy or sell shares on any business day at the fund’s current net asset value (NAV). This makes money market funds a convenient option for those who need quick access to their funds or want a temporary place to park cash.
  3. Diversification: Money market funds diversify their holdings by investing in a variety of short-term debt securities. This diversification spreads the risk across multiple issuers and securities, reducing the impact of any individual default or credit event. It can also provide a level of stability and security for investors.
  4. Professional Management: Money market funds are managed by professional fund managers who have expertise in selecting and monitoring short-term debt securities. These managers conduct research, monitor market conditions, and make investment decisions on behalf of the fund. This relieves investors of the need to individually manage a portfolio of short-term securities.
  5. Low Volatility: Money market funds generally have low volatility compared to other investment options, such as stocks or long-term bonds. The focus on low-risk investments with short maturities helps to minimize interest rate risk. This can be attractive to investors who prioritize stability and prefer to avoid the potential price fluctuations associated with riskier investments.

Cons of investing in money market funds:

  1. Low Returns: Money market funds typically offer lower returns compared to riskier investments. The conservative nature of these funds means that the potential for capital appreciation and income generation is limited. While money market funds provide stability, they may not provide significant growth or keep pace with inflation over the long term.
  2. Interest Rate Risk: Money market funds are not immune to interest rate risk. When interest rates rise, the value of the underlying debt securities may decline, potentially impacting the fund’s NAV. This interest rate risk can lead to lower returns, especially for investors who need to sell their shares before maturity.
  3. Inflation Risk: Money market funds may not provide sufficient returns to keep up with inflation. If the interest earned on the underlying securities does not keep pace with inflation, the purchasing power of the investment may erode over time. This can result in a loss of real value for investors, particularly over longer investment horizons.
  4. Credit Risk: Although money market funds invest in high-quality debt securities, there is still a small degree of credit risk associated with the underlying investments. In rare cases, a security held by the fund may experience a credit event or default, impacting the fund’s performance and potentially causing losses for investors.
  5. Fees: Money market funds charge expense ratios and management fees, which can reduce overall returns. While these fees are typically lower compared to other types of funds, they still have an impact on the fund’s performance. It’s important for investors to consider the fees and expenses associated with money market funds before investing.
  6. Limited Growth Potential: Money market funds are primarily focused on capital preservation and stability, rather than long-term growth. If an investor has a higher risk tolerance and is seeking substantial capital appreciation over time, other investment options, such as stocks or long-term bonds, may be more suitable.

Being an alternative to saving accounts is what makes money markets one of the best assets to own and clearly an alternative to cash. To invest in a money market fund, look at its size, fees, and performance. It is also worth noting that while money market funds are one of the best assets to own, they are mostly suitable for short-term cash management, providing stability, and serving as a temporary investment option. If you are looking for higher returns or long-term growth, you may need to explore other investment avenues.

5. Cryptocurrencies: Embracing the Digital Revolution.

Yes, you read that right. There’s a lot of debate about whether or not crypto is actually a real asset class and if it is one of the best assets to own given the variety of options that modern money has. It is my view that neglecting all the secular trends happening within the crypto landscape and traditional fiat would be catastrophic for any investor.

What makes cryptocurrencies one of the best assets to own? Short answer; with the rise of blockchain technology, cryptocurrencies have emerged as a groundbreaking investment opportunity. BlackRock, the world’s largest asset manager with close to $10 trillion under management filed for a Bitcoin ETF in June 2023. Other large money managers are following suit. This clearly shows that there is institutional interest in crypto.

The problem with investing in crypto? There are thousands of coins and most of them have no value a.k.a “shitcoins”. If you need crypto exposure in your portfolio, I recommend concentrating your investment in Bitcoin and Ethereum. Also, size your stake in crypto accordingly based on your goals and risk tolerance. Ray Dalio recommends a maximum of 5% portfolio exposure to cryptocurrencies.

Chart of Bitcoin/USD showing crypto can be one of the best assets to own
Bitcoin/USD Chart. Source: Trading Economics

Pros and Cons of Investing in Crypto

Investing in cryptocurrencies can offer certain advantages and disadvantages. Here are some pros and cons to consider:

Pros of investing in cryptocurrencies:

  1. Potential for high returns: Cryptocurrencies have the potential for significant price appreciation, and some investors have achieved substantial returns. Early investors in cryptocurrencies like Bitcoin and Ethereum have seen substantial gains. However, it’s important to note that past performance is not indicative of future results, and the cryptocurrency market is highly volatile.
  2. Decentralization and security: Cryptocurrencies are based on blockchain technology, which operates in a decentralized manner. This means that transactions are recorded on a distributed ledger, providing transparency and security. Blockchain technology’s cryptographic features make cryptocurrencies resistant to fraud and counterfeiting.
  3. Diversification: Cryptocurrencies offer an additional asset class for diversifying investment portfolios. Adding cryptocurrencies to a portfolio can potentially reduce overall portfolio risk by having exposure to different market dynamics compared to traditional assets like stocks and bonds.
  4. Accessibility and liquidity: Cryptocurrencies are easily accessible to anyone with an internet connection, allowing individuals to invest and trade 24/7. Cryptocurrency exchanges provide liquidity, making it relatively straightforward to buy and sell cryptocurrencies.

Cons of investing in cryptocurrencies:

  1. High volatility: Cryptocurrencies are known for their extreme price volatility. Prices can experience rapid and substantial fluctuations in short periods. The high volatility can lead to significant gains, but it also carries the risk of significant losses. Cryptocurrency markets are influenced by various factors, including market sentiment, regulatory developments, technological advancements, and macroeconomic events.
  2. Lack of regulation and security risks: Cryptocurrencies are relatively unregulated compared to traditional financial markets. This regulatory uncertainty can create risks for investors, including the potential for fraud, hacking, and market manipulation. Security breaches and thefts from cryptocurrency exchanges and wallets have occurred in the past, highlighting the importance of implementing robust security measures.
  3. Complexity and technical knowledge: Understanding cryptocurrencies and blockchain technology can be complex, especially for individuals new to the space. Investing in cryptocurrencies requires technical knowledge to navigate exchanges, wallets, and secure storage methods. Lack of understanding can increase the risk of making mistakes or falling victim to scams.
  4. Regulatory and legal risks: The regulatory landscape surrounding cryptocurrencies is evolving and varies across jurisdictions. Changes in regulations or government actions can impact the value and legality of cryptocurrencies. Regulatory uncertainty can create challenges for investors and introduce additional risks.
  5. Market manipulation and speculation: Cryptocurrency markets can be susceptible to manipulation and speculative trading. The relatively low market capitalization of some cryptocurrencies compared to traditional assets makes them more susceptible to price manipulation by large investors or “whales.” Speculation can drive price movements, making the market more unpredictable and potentially detached from underlying fundamentals.

Clearly, cryptocurrencies carry very big risks. Are they an asset class or just a passing fad? Only time will tell. Investing in major coins such as Bitcoin and Ethereum can prove to be a good investment in the long run. It is also important to note that once you purchase cryptocurrencies on an exchange, it is prudent to transfer them to a non-custodial (self-custody) wallet.

6. Precious Metals: A Hedge Against Uncertainty.

For centuries, precious metals like gold, silver, and platinum have served as a safe haven for investors during times of economic uncertainty. They have long been regarded as some of the best assets to own and the true standard of money. Research has shown that the wealthy consider gold in particular as one of the best assets to own and a safe haven in uncertain times.

What makes precious metals one of the best assets to own? Precious metals are a well-known store of value. Metals such as gold provided inflation protection, and portfolio diversification benefits for ages.

How can you invest in precious metals? You can invest in precious metals through physical ownership, exchange-traded funds (ETFs), mining stocks, and precious metal futures contracts.

Gold has also consistently increased in value over the last 100 years although it has also exhibited much volatility. Unlike stocks and real estate, it is prudent to know that gold does not have an annual return.

Gold prices over 100 years making it one of the best assets to own
Gold Prices – 100-Year Historical Chart. Source: MacroTrends

7. Yourself and your products

You are the ultimate asset. Unlike everything else on this list, there is no maximum return on investment when you invest in yourself and your products. Starting a business, and launching a product line (digital or physical) can be a daunting task but in the long run, can yield the highest returns. While an investment in yourself is not guaranteed and takes the most time and effort, it can also be the most educating, fulfilling, and rewarding.

Woman with a line graphic financial goals
Photo by Monstera from Pexels: https://www.pexels.com/photo/illustration-of-woman-analyzing-financial-line-graphic-6289065/

Here are five ways you can start doing this today:

  1. You can launch an online brand of any kind and offer what you are good at. For instance, I am here talking about finance as a finance professional.
  2. You can educate and/or inspire others about the things you have learned, what you have gone through, and the places you have been.
  3. You can solve a problem in your area.
  4. You can create a product or service that is more affordable and/or convenient as compared to existing services and products.
  5. You can exploit your talents/abilities and make an impact online and offline.

Conclusion

Constructing a well-diversified investment portfolio is a crucial step toward achieving financial stability and prosperity. By owning a combination of the best assets, including stocks, real estate, cryptocurrencies, precious metals, bonds, and ETFs, investors can harness the potential for growth, income, and wealth preservation. However, it’s important to remember that no investment is entirely risk-free, and thorough research and risk management are vital.

Regularly reassessing your portfolio, staying updated with market trends, and seeking professional advice when necessary will ensure that you stay on the right track toward your financial goals. Ultimately, by leveraging the power of these best assets to own, you can navigate the financial markets with confidence and build a prosperous future for yourself and your loved ones. In doing all this, do not forget to invest in yourself and your products/services. While returns are not guaranteed or forecastable, it might be the best thing you ever do.

See also: Why You Do What You Do With Money

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