Another Good Reason to Invest in Stocks

If you still aren’t convinced that stocks is one of the best investments to achieve financial freedom, here is another good reason that can help change your thinking.

According to COL financial, based on annualized returns from 2006 to 2015, stocks have outperformed all other asset classes.

stocksbestinvestment

At 12.74% annualized return for stocks, it beats time deposits, T-Bills and Bonds.  Not only do stocks have higher returns but also beats the average inflation rate of 4.1%.

As of this writing savings accounts have 0.25% interest rate, that’s quite far from the 12.74% returns from stocks.  So of course it would just be right to invest in stocks rather than savings accounts or even time deposits if you would like to beat the inflation rate.  In the long run your stock investments will actually earn and not just be eaten by inflation.

 

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