@Steven May I am a millennial too and I have been wondering about this myself lately as well! I am a rookie in REI and still learning a lot, and I don't know if I can be of any help, but I have been rather a strong advocate for indexing. I think they both have pros and cons, but what I love about REI is that you actually get to see what you have accomplished, where as stocks and bonds you don't really see the physical accomplishment.
That is not to say not to invest in index funds and ETFs, but I think it really depends on your preferences and risk tolerance! Both are fun and better than nothing, and whether you invest in stock market or REI or both, you would most likely end up better off than those who don't make any action.
What I think the important thing though in 401k and IRA is to know what you are investing in (or your employer's investing in for you) and make conscious decisions. I heard that majority of money in 401k, 403b are invested in Target-Date funds, which can be really inefficient and incurs a lot of fees. I think 401k and IRA are great tools and very tax efficient, and I would definitely make a good use of it if my employer offered it, or once I am legally residing in the states. I currently use John Bogle's Three-Fund Portfolio, and it gives me more than 8% return on my investment, not too great but not too shabby?
perhaps you can think of it as diversification, and make use of both methods?
Cheers.
