What to Invest In

(The Things That Actually Build Wealth)

Real investing isn’t about shortcuts, or chasing the next big thing. It’s about consistently putting your money into productive assets — things that create value, generate income, and grow over time. These are the foundations of long‑term financial success.

Here’s what truly belongs in your investment plan.

1. Yourself

Your education, your skills, your health — these are the highest‑return investments you will ever make.

• Learn continuously
• Stay healthy
• Build expertise
• Improve your earning power

Education and skills will be with you, helping you for the rest of your life.

2. Your Own Business (Any Business)

You don’t need to build the next Apple. You just need to learn how to run something.

• Start small
• Make mistakes
• Fix them
• Keep going

Owning a business teaches discipline, problem‑solving, and resilience — skills that compound for life.

Another advantage people sometimes do not realize is that owning a business gives you tax advantages that individuals do not get.
When you run a business, many of the things you need to operate become legitimate business expenses:

• Part of your phone bill
• Part of your internet
• Office supplies
• Software
• Equipment
• Travel for business
• Professional education
• Even part of your home (home office deduction)

These aren’t loopholes — they’re the rules.
And they allow you to build something valuable while reducing your tax burden.
Starting a business can be a powerful wealth-building tool. If you turn out to be successful, you have another income stream that you can use to increase your income and your investments.

I bet you didn't expect those two items to be first. Below is probably why you clicked on this section:

3. S&P 500 Index Funds / Equivalent Mutual Funds

Large‑cap index funds are the best for an investor to set it and forget it. Especially the S&P500.

• It tracks America’s biggest, most stable companies
• It is low‑cost
• and tax‑efficient
• They’re easy to understand
• It is automatically adjusted each year. The top 500 stay in the list, growing and producing. If a company goes into decline, it falls off the list and a new one joins.

These funds rise and fall with the U.S. economy — and the U.S. economy has grown for over a century.

4. Total Market Index Funds

This is the simplest, most powerful investment most people will ever make.

• You own thousands of companies at once
• You capture the entire U.S. economy
• You get automatic diversification
• You benefit from long‑term growth

This is the core of a smart portfolio.

5. International Funds

If you want to add a bit of diversity that will probably underperform in most markets but will occasionally outperform U.S. markets, add an international fund. They have recently been doing quite well, but I would not invest a large percentage in them.

A Critical Reminder: These WILL Lose Value at Times

Every productive investment goes through downturns. That’s normal and it is expected. It is just part of the process.
do not sell
Selling during a drop is how people turn temporary declines into permanent losses.

The S&P 500: Proof That Recovery Is the Rule, Not the Exception

Look at the long‑term chart of the S&P 500. You’ll see:

• Sharp drops
• Scary headlines
• Recessions
• Crashes
• Bear markets

And then — every single time — recovery.
Not only recovery, but new highs.

The pattern is unmistakable:
Short‑term pain. Long‑term growth.

When the market is down, I consider it “on sale.” If I can, I put more money in — not less.
Because downturns are temporary, but the growth that follows is permanent.
This is why disciplined investors win.

Notice that I do not recommend playing with individual stocks. I suggest leaving that to professionals who can watch them every day and take appropriate action swiftly if it is needed.

Invest in things that are productive, diversified, and built to last:

1. Yourself
2. Your skills and health
3. Your own business (with real tax advantages)
4. Large index funds and mutual funds
5. Total market index funds
6. International funds

These are the assets that build real wealth — slowly, steadily, and reliably.

If you want help building a plan around these principles, I’m here for you. Whether you’re starting with a little or a lot, the goal is the same: your financial success.