THE RETURN-ON-HASSLE SPECTRUM
| Investment Type | Difficulty/Hassle (1-10) | Expected Annual Return |
|---|---|---|
| T-bills | 1 | 4% |
| U.S. bonds | 2 | 4.5% |
| Diversified portfolio (60/40) | 3 | 6% |
| Passive stock fund | 5 | 7% |
| Active stock fund | 6 | 7.5% |
| Individual stock picking | 7 | 8% |
| Real estate rentals | 8 | 10% |
| Starting your own business | 10 | 12%+ |
Higher returns = Higher hassle. Choose your trade-off deliberately.
Source: American Time Use Survey, Our World in Data