Picture this: You want to retire in 20 years or less. There’s no pension, and Social Security feels iffy. You’ve got a full-time job but are unsure if your savings will cut it. So, you’re banking on your investments to pull their weight. The goal? Maximum returns with minimal effort since you can’t handle active management.

The big question is, where do you stash your money for the best returns over the next two decades? Let’s tackle this, starting with two key points. First, the future is unpredictable. We can only look at past performance to make educated guesses about the future. Second, high returns come with high risks—no way around it. If someone promises high returns with low risk, it’s likely a scam.

Given this, a long-term horizon is crucial. If you need access to this money within the next ten years, high-risk investments aren’t for you. But if you can let it ride, let’s talk about the best option historically: the stock market.

Over the past 75-90 years, stocks have outperformed other investments. Had you invested $10,000 in the U.S. stock market in 1969, you’d have over a million dollars today. On average, stocks have returned about 7% per year for the past century, doubling your investment every decade. Despite this impressive growth, remember it comes with volatility—some years are up, others down.

For those with a 10+ year horizon, focusing on the stock market can be wise. But don’t put your money here if you anticipate needing it sooner.

Now, which stocks specifically? The U.S. stock market has thrived thanks to the country’s historical economic dominance. But relying solely on U.S. stocks may not be ideal moving forward, with countries like China and India poised for high growth. To hedge your bets, consider a global approach.

A diversified global stock index fund is a smart play. The Vanguard Global Total World Stock Index Fund is an excellent example, available to both U.S. and UK investors. This fund invests in a mix of U.S., developed foreign, and emerging market stocks, capturing growth from various global sectors while keeping costs low at under 0.2%.

Some might think concentrating on high-growth sectors, like tech, would yield better returns. However, predicting future top-performing sectors is nearly impossible. Therefore, diversifying across all sectors through a fund like the Vanguard Global Total World Stock Index Fund spreads your risk and potential for gain.

With these insights, you’re better equipped to secure your financial freedom and enjoy a well-funded retirement. Best of luck!