What are the best investments? Best for what? That’s kind of like asking what is the best kind of car. Best for what? A car that is best for winning a Nascar race, won’t be the best kind of car for taking the family on a cross country trip. A car that is best for hauling stuff, won’t be best for gas mileage. So back to the best investments. Best for what? Personally, I really like the REIT index fund I am invested in. In my Roth IRA the fund is great. It has a good high yield, and goes up as well. But the same reason I like it in my Roth IRA, is why it is not as good in my regular brokerage account. The high yield! The dividends from regular stocks get taxed at a maximum rate of 15%. Then comes long term capital gains tax. That is a little higher. But the dividends from my REIT index fund get taxed as regular income. That is potantially as high as 35%! In my Roth IRA, I don’t have to worry about the taxes. Outside of my Roth IRA, I do.
If I was saving money for a house that I expected to buy in the next year or two, the best investments would be of a conservative nature. But the same “best investments” would not be the best if I were saving for a retirement that was 30 years away!
Best investments is a meaningless term. What is best for one thing, won’t be best for something else. And over time, it might not even be best for anything.