Investments

What Are Things You Can Invest In

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 7 minute read

Put some variety in your financial portfolio by investing in some of these unexpected and entertaining ideas. It’s time to start looking at other investing options once you’ve paid off your debt and are saving enough for your retirement. Building a well-diversified portfolio in your 40s might be one of the smartest money decisions you can make. It’s true that alternative assets can help you diversify your portfolio and possibly increase your retirement savings, but it’s important to remember that investing comes with the risk of loss.

Investing in alternative assets should account for no more than 10% of your whole portfolio, according to most experts. That said, you have a wide range of options when it comes to where you’ll invest that portion of your savings. To get you started, here are a few suggestions.

Crowdfunded real estate

Investments in real estate have outpaced the stock market for the past 30 years, but until recently, only the rich were able to invest in real estate. With crowdfunding real estate investing platforms, you don’t have to have millions of dollars to invest in multifamily housing projects like apartment complexes.

With DiversyFund, you may acquire shares in a publicly non-traded real estate investment trust that collects rent from several properties and provides dividends to its owners. Investors get a portion of the proceeds from the sale of assets when the investment term expires, and then the dividends are reinvested until the investment term expires. Five years is the normal length of time for a DiversyFund investment. Investing in REITs carries the same risks as any other investment.

Fine art

The S&P 500’s returns from 2000 to 2018 were 180 percent higher than those of blue-chip paintings, despite the fact that previous performance is no guarantee of future success. However, prominent artists’ works, such as those by Andy Warhol, usually fetch millions of dollars. Crowdfunding, however, provides a way for average people to own shares in blue-chip artworks.

To invest in Masterworks, you can either hang on to your investment until the artwork is sold or sell your shares in the secondary market. Masterworks utilizes its own proprietary analytics to identify high-yield investment opportunities and buys artwork it believes will appreciate in value. Any earnings from the sale of artworks are distributed among shareholders, with fewer management fees, at the end of three to ten years.

Gold coins

Because gold coins often don’t rise in value right away, it may take a few years before you see any possible returns from your investment. Even if it does acquire value, there’s a risk it won’t. If you’re looking for something that’s a little more tangible, gold may be a fantastic option for investors. Despite the fact that the price of gold is not expected to rise, it has experienced a 600 percent gain in the previous 20 years. Use a reliable vendor when purchasing gold coins, such as APMEX, Inc. or JM Bullion. With a platform like Gold Alliance, you may invest in a gold individual retirement account.

Cannabis

The cannabis business is expanding as more states legalize marijuana and CBD products. According to New Frontier Data, the hemp-derived CBD industry alone is predicted to expand from $390 million in 2018 to $1.3 billion by 2022. Investing in marijuana stocks or ETFs through an online platform like Stash, which allows you to acquire fractional shares for as little as $5, is a good way to take advantage of this potential growth. Even if your company does well, you may lose money as well.

Comic books

You may be able to get lucky with comics that are later converted into movies or are popular for other reasons if you know what to look for. Attending a comic convention is a great place to trade or sell rare comics for inexpensive prices. Some comics may fetch a lot of money when sold at an auction… In 2011, the first appearance of Superman in a 1938 comic sold for over $2.1 million.

An Oscar-winning actor’s copy of the first issue of Action Comics #1 was in his possession. The year before that, Nicholas Cage had been on a spending spree that included exotic cars, exotic animals, and exotic property. He was able to get out of his financial bind by reselling his comic book collection.

Cheap land

When it comes to property, you may not be able to afford to buy a beach home in California, but a modest plot of the ground might still produce a significant return even if you never build on it. There are other crowdfunded investment alternatives available if you want to make a lesser investment than acquiring a whole piece of property. As an example, the FarmTogether crowdfunded investment platform allows you to invest in the sustainable farms that are part of the network.

Wine

Fine wine may increase in value over time, especially if you know what you’re doing when you acquire it. A collector or at an auction or wine stock market can then purchase them from you.

Online platforms like Vinovest allow you to invest in wine without needing a storage facility, thousands of dollars to invest, or the ability to predict which wines would do well. Vinovest buys and stores wine for you, so you can rest and monitor your portfolio over time with a $1,000 minimum commitment. Wines can be accessed at any moment for your own enjoyment, or they can be sold for a profit.

Equipment

Many firms prefer to lease pricey equipment rather than purchase it. This is frequently accomplished through the use of equipment leasing funds. Typically, they are formed up of a group of investors who pool their resources to buy the necessary equipment for enterprises. Assuming firms chose to lease the equipment, these investors might possibly generate a constant flow of cash.

Sports teams

It’s possible to own a minor league baseball team for roughly $500,000, which is cheaper if you pool your resources with a few other investors. A less expensive alternative to purchasing a minor league club on your own or with investment partners would be to purchase shares in publicly listed franchises.

Lean hogs

Bacon makes everything better. What if I told you that you could invest in it as well as consume? A cash-settled instrument, lean hogs futures, and options are available on the Chicago Mercantile Exchange (CME). Lean hogs are a volatile commodity because livestock farmers utilize futures to manage risks like severe weather or inadequate feed supply. It’s also important to keep an eye on the livestock sector when you’re investing in lean hogs futures since the best strategy is to purchase when prices are expected to climb and sell when prices are expected to fall.

Additionally, if you believe the price of lean hogs will rise in the near future, you may want to consider acquiring call options or put options. When the price of lean hog futures reaches a certain level, you can purchase or sell them.

Toys

So, if you’re already into toy collecting, why not plan ahead and acquire toys that will be valuable in the future? For example, even decades after the beanie baby fad peaked, some extremely rare examples continue to fetch tens of thousands of dollars on eBay. Aim for toys that are both popular and only available in limited quantities if you want to maximize your income. Limited edition American Girl dolls, for example, may now fetch thousands of dollars. If you have a limited edition Lego set or a collector Monopoly board, they might be worth more in the future.

Vintage cars

When you buy a new automobile, you’re taking a risk since the value decreases as soon as you leave the showroom. However, certain vintage automobiles may still fetch a high price. Bloomberg’s Investment Guide for Classic Automobiles will help you figure out which cars are likely to go up in value in the future. There are a number of ways you may make money from servicing and reselling automobiles.

Stamps

Some rare stamps are worth millions of dollars, despite what you would think. For valuable stamps to provide a 5-to-20-percent return over the course of a few years, you’ll need to keep them for at least five to fifteen years. Stamps aren’t predicted to gain in value for everyone; just roughly 1% of stamps worldwide are expected to rise in value over time. On the other hand, if you like collecting things, stamps might be an excellent investment.

Music royalties

Do you have a knack for predicting the next big smash or are you more of a music aficionado? ANote Music and Royalty Exchange, for example, allow you to purchase shares in music, possibly earning you a yearly return on your investment in the form of royalties. As of 2020, the Royalty Exchange claims to have a return on investment of more than 10% based on a six-month-a-year annualized return.

Tax lien certificates

Local governments may sell tax liens to investors at auctions if people are unable to pay their property taxes. You can begin collecting interest from the property owner for the cost of the tax billowing. As a result of the way the sales are handled, experts recommend that you don’t anticipate more than a 9 percent return. Still, if you’re looking to broaden your financial horizons, this is a viable alternative.

Parking spots

An investment in a parking space in a high-traffic location of a major city may be quite rewarding. They may be purchased for a fraction of the cost of a house and rented for thousands of dollars each month. If you’re looking for a parking spot, you’ll have to pay a fee for it. If you’re looking for a less time-consuming investment, this might be a suitable option for you.

Bottom Line

Even if you don’t have a lot of money, you don’t need to be a sophisticated investor when it comes to investing. Although most investment options need time and effort, there is always a chance of losing money. Some investment platforms allow you to start investing with little money, but if you’re saving for a long-term goal, you’ll need to expand and diversify your portfolio over time. You may want to see a financial expert if you have particular issues or need investing assistance.

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