About this Video

• Video Title: The Best & Worst Investments (TIER LIST)
• Channel: Logan Colyer
• Speakers: Logan Colyer
• Duration: 00:13:30

Introduction

This video ranks 15 popular investment options on a tier list (S to F), evaluating them based on three criteria: strong returns relative to risk, accessibility, and a clear path to growth. The video identifies the "best of the best" (S-tier+) and "worst of the worst" (F-tier hell) investments.

Key Takeaways

• Options Trading (F-tier): High risk, complex, time-sensitive, and most beginners lose money. Fails the clarity and accessibility tests.
• Dividend Stocks (A-tier): Offer passive income and lower volatility; historically outperformed the market. However, not always diversified, growth can lag, and dividends are taxed.
• Bitcoin (D-tier): Extremely volatile and speculative; has seen massive returns but also significant drops. Fails the long-term clarity test and lacks widespread adoption.
• S&P 500 Index Fund (S-tier+): A "cheat code" for investing, with ~10% annual returns for over 90 years. Low-fee, diversified, and accessible.
• US Treasury Bonds (C-tier): Backed by the US government, offering stability. However, long-term returns are low (1-3% after inflation).
• Corporate Bonds (B-tier): Higher yield than Treasuries but with added risk due to company-specific factors; limited upside.
• REITs (A-tier): Allow real estate investment without direct property ownership; legally required to distribute 90% of income as dividends. Less volatile than the stock market.
• Rental Properties (D-tier): Potential for wealth building but requires significant capital, time, management skills, and tenant management. High barrier to entry.
• Gold (C-tier): Holds value during crises, historically decent returns, and serves as a hedge against stock market drops. Not a wealth builder, mainly for defense.
• High-Yield Savings Account (D-tier): Not an investment, more of a parking spot for money; low returns barely outpacing inflation. Useful for emergency funds.
• Total Stock Market Index Fund (A-tier): Broader than S&P 500, offering exposure to small, mid, and large-cap companies; similar returns with more volatility.
• International Index Funds (B-tier): Exposure to non-US markets; historically underperformed US stocks but offers diversification and potential for high growth in specific regions/times.
• Venture Capital (D-tier): Investing in startups; high risk of loss, long time horizons (7-10 years for return), and illiquidity.
• Commodities (C-tier): Invested in through ETFs; volatile, no income production, but can serve as an inflation hedge and add diversification.
• TIPS (C-tier): Treasury Inflation-Protected Securities; low-risk, real returns, but modest returns and potentially annoying taxes.

The three criteria used to rank the investments are:

1. Strong returns relative to risk.
2. Accessibility and realism for most people (not requiring millions to start and without hidden barriers).
3. A clear and straightforward path to growth over time (not confusing, unpredictable, or overly reliant on luck).