The low-cost index funds or ETFs you choose will change the performance. It’s crucial to find the most efficient and cost-effective representations for each percentage.

Why would anyone want to invest in mutual funds through an annuity? Because annuity products have special tax benefits, and the money inside can grow tax-deferred, just like a 401(k) or IRA.

And, most experts agree, the ultimate diversification tool for individual investors is the low-fee index fund, which gives you the broadest exposure to the largest numbers of securities for the lowest cost.

A portfolio of low-cost index funds is the best approach for a percentage of your investments because we don’t know what stocks will be “best” going forward.

Also, as you’ll soon learn, there are some great ways to invest in real estate — like first trust deeds, REITs (real estate investment trusts), senior housing, income-producing properties, and so on.

people often find equity unattractive. It’s not liquid like cash. It’s tied to one specific company. And if that company doesn’t succeed, it’s worthless. Equity is a powerful tool precisely because of these limitations. Anyone who prefers owning a part of your company to being paid in cash reveals a preference for the long term and a commitment to increasing your company’s value in the future. Equity can’t create perfect incentives, but it’s the best way for a founder to keep everyone in the company broadly aligned.

One reason bonds are so popular is that elderly people have most of the money in this country, and elderly people tend to live off interest.

And this speaks to the importance of taking advantage of every tax-advantaged investment opportunity that you can. You should maximize your contributions if you’ve got a 401(k), or a 403(b) if you work for a nonprofit. You should take every opportunity to invest in a tax-deferred way.

Anyone who prefers owning a part of your company to being paid in cash reveals a preference for the long term and a commitment to increasing your company’s value in the future. Equity can’t create perfect incentives, but it’s the best way for a founder to keep everyone in the company broadly aligned.

When people are free to choose, they choose freedom

People actually like supporting the artists whose work they like. It makes them feel happy. You don’t have to force them. And if you force them, they don’t feel as good.

Most individual investors would be better off in an index mutual fund.

such as doctors, lawyers, and small business owners will find tremendous value in the pages ahead, but those with as little as a few thousand to invest will learn how to create a version of the structure that will provide all the same benefits. Here are the astounding benefits available to all: • unlimited deposit amounts (with no income limitations) • no tax on the growth of your investments • no tax when accessed (if structured correctly) and • any money left over for your heirs cannot be taxed.

So that was the rub. That the best chance for long-term growth and financial freedom is a well balanced portfolio that minimizes fees and taxes but that comes with risk.