What has the best rate of return: a savings account, a home, or index funds?

When thinking about where to put your money, I often get questions about which high yield savings account is best. They’re all so low these days it just doesn’t matter.⁣‎
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Cash under the mattress obviously isn’t a good way to go.⁣⁣⁣⁣‎
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And your primary residence is more of a forced savings account than a great investment. The 3.7% rate of return shown here is based on the S&P/Case-Shiller U.S. National Home Price Index which tracks “same home” sale prices. This doesn’t even account for the expenses of owning a home (taxes, insurance, maintenance, realtor fees, etc). If you include those the average return is negative.‎
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Index funds are still king. Buying and holding index funds is the most efficient and effective way to grow your wealth.⁣⁣⁣⁣‎
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When I talk about index fund returns, I often hear “That’s not realistic! What about inflation?!” And for sure, that’s an important factor. A million bucks in 40 year