The 4 Building Blocks of Every Investment Portfolio

In this week’s episode of Retire in Texas, Darryl Lyons, CEO and Co-Founder of PAX Financial Group, brings it back to basics - but with a twist. In a time when market noise is louder than ever, Darryl offers a clear, foundational look at the four main investment types: stocks, bonds, cash, and alternatives. Whether you’re a seasoned investor or just getting started, this episode delivers timeless principles, real-world context, and fresh insight to help you make better long-term decisions.

Darryl explains why owning companies still offers the best opportunity for long-term growth, why cash isn’t as “safe” as it feels, and how innovations like private equity are reshaping the investment landscape. Most importantly, he challenges listeners to rethink risk, recognize the power of compounding, and stop letting fear keep money on the sidelines.

Key highlights of the episode include:

• The four building blocks of any portfolio - and what each one really means for your future.
• The difference between growth and income stocks, and why mid-size companies may offer a “Goldilocks” sweet spot.
• What bonds are, how they pay you, and the hidden risks in both high-yield and investment-grade debt.
• Why cash loses value over time - and how behavioral biases cost investors more than they realize.
• How alternative investments like private equity and structured products are changing the game for everyday investors.

Whether you’ve been in the market for decades or are still holding too much cash “just in case,” this episode helps reframe the investing conversation around clarity, confidence, and long-term thinking.

For more insights or to connect with a PAX Financial Group advisor, visit www.PAXFinancialGroup.com. Like what you heard? Share this episode with a friend

Resources:

What Are The Historical Returns For Stocks, Bonds, Gold, Real Estate, And Cash? (Asset Class Returns) - QuantifiedStrategies.com

S&P 500 Annual Total Return Yearly Analysis: S&P 500 Returns | YCharts

Annualized Returns By Asset Class From 1999 to 2018

Historical and expected returns - Bogleheads