Bonds, ETFs, mutual funds, real estate, individual stocks — these are what experienced investors and many financial planners tell us over and over after popping the question: Where should I invest my money?
But stock markets can be too volatile to watch for some and real estate might just be too much for others. So are there any other investment alternatives to watch out for? You bet!
Collectibles: Art and Antiques
Collectibles and art antiques are great investments but only for those who are in for a longer haul. What makes them good considerations is that unlike the standard stock market investments, they have no correlation to stock prices. This means even if stocks are down, their value may still continuously go up.
However, it’s important to note that these types of investments are not at all liquid. You should spend money only on art you yourself love and can afford to get tied up to.
Yes, the delicious accompaniment of our favorite steak dinners can be valuable investment as well. But it’s not a small feat especially for anyone who’s not into winery.
For this approach, it is essential that you have clear understanding of what you need to protect the investment and which vineyards or vintages are most sought after. Only then can you expect to make a 6-15% return annually.
One of the rising stars in the financial world, this investment scheme is just as it sounds: you lend money to someone and get paid interest rate lower than a traditional bank’s.
What’s great about peer-to-peer lending is that invested money will be diversified. Say you put in $1000. Of the amount, only $25 or $50 will be going to a borrower. So if that borrower defaults, the investor will not be losing his entire investment.
These are just 3 of the many “unconventional” investment options out there. Others you might like to consider are treasury notes, small businesses, gold and CD ladders. Whichever you choose, just keep in mind this very important reminder: Never invest in something you know nothing about.