While I am not going to provide a lot of informaition on your question, I want to correct one error that may confuse readers. I implicitly assume that I am talking about indexed shares/funds. So, REIT arguments I made are assuming indexed shares. If you buy REIT share for a single company then it is as risky as buying a stock of any single company. Be careful about that because stock investing gets risky when you start picking shares of single company. The reason people take such risks is that the want to get quick fast. I don't take such risks and I am really not looking to make money fast. My approach of getting rich from the stock market is staying in it for a long time. I am looking for 50+ years and I have already covered 18 years of that.Thanks for sharing this with us. I was looking for some funds to invest in and this seems like a good bet to diversify ones portfolio some more. Any particular recommendations?
When you focus on staying in market for a long time, wealth accumulation is guaranteed. What you have to then focus on is minimizing risk (health care expenses, job losses, etc.). That is my approach to investing. So, if I were to make any recommendations then those will be invest in index funds. The benefit of this was discussed earlier, but two main benefits are: 1) you don't have to worry about a manager screwing up, and 2) passive investment strategy keeps fund expense ratio low and that helps you in getting additional benefits of compounding. Finally, you don't have to worry about a company all the time, like you have to, if you had invested in a single stock. With that said, keep in mind that recommendations involve your income. At the lower end of the income level, you have simple life where you may consider cash account, provident fund, perhaps consider buying a house to live in. At the high end, life gets way too complex. Here you really have to get extremely mathematical where you have to consider tax implications and risk management. Here you will consider margin trading, options, strategic real estate to reduce tax burden, trust funds, charity, etc. In the middle, you will consider stocks and bonds. This is where you should be considering indexed funds both for peace of mind and steady growth of capital. Pick three to begin with-- a stock index, a bond index and gold ETF. You should always allocate more than 20% in stocks. Stocks are the safest bet against inflation over the long term. Bonds will provide income at low return. Gold is tax efficient and a hedge against stock volatility. With that in mind, you have to decide on allocations yourself.