If you ask most people what investment can give you higher chances of return, they will likely point you to the stock market. The stock market has always been the go-to investment vehicle for many people. Whatever the investment strategy is, whether long term investing or day-to-day trading, the stock market has been known to give investors a good return for their money. That is except, of course, for those catastrophic instances when the stock market went all the way down, bringing with it thousands of broken hopes and dreams.
With that said, it is just smart not to pour all your hard-earned money into a single investment vehicle. You must learn to diversify your assets. Flash news, other investment vehicles can also give you a good return for your money. Here are some of the top alternative investment options that you can try, other than the stock market.
1. Invest in precious metals.
Across history, gold and silver have been known to symbolize immense wealth and power. Now, the value of gold depends on the value of the dollar and the movement of the market. However, gold and silver are the types of investments that you can own and are tangible. In the event of a financial and economic collapse, you can still use precious metals in exchange for goods and products.
You can purchase gold and silver bars from reputable gold refinery companies. A gold refinery can also help you test and sell your precious metals.
2. Invest in real estate.
Despite some setbacks over the years, real estate is still one of the hottest investments there is. The need for real estate never diminishes, whether it is for housing or business. It can give you many income opportunities, through rent or sales. Managing your real estate property will need dedication and skills. You can buy your real estate property direct from the seller, you can invest in partnerships, or you can buy shares in real estate investment trusts (REITs) such as Fundrise and Acretrader.
3. Join a Peer-to-Peer Lending platform.
A peer-to-peer lending platform allows you to invest your money in loan portfolios through a lending club. It benefits both the borrowers and investors. Borrowing money is made easy because there is no middleman or banker. It gives the borrower lower interest rates while providing the lender higher returns. You can diversify and spread your investment money across different borrowers, reducing the risks of being defaulted in payments.
If you are interested in joining a lending club, check the availability of this investment in your state.
4. Join a small business.
If starting a small business from scratch scares you, you can partner with an existing company. Rather than the business-owner applying for a loan, you can provide capital to help the business expand. It effectively makes you a business partner and entitles you to a percentage of the company itself and its income.
Now, if you are confident and comfortable enough, you can start your own business through a franchise. Unlike with starting your business from scratch, a franchise provides you with the tools to start your business. Franchise businesses also have an existing and proven business model that you can adopt. You do not have to guess what products you should offer, as this is already taken care of with a franchise.
5. Invest in Treasury Securities.
You can invest in four types of securities: bills, notes, bonds, and treasury inflation-protected securities. Bills have a maturity date of up to a year. Notes have them up to ten years, while bonds have maturities of more than ten years. Bonds can give you the highest returns, with bills the lowest. You can buy them from the US Treasury’s online portal, Treasury Direct.
6. Invest in yourself.
Now, this might sound like a cliche, but investing in yourself will be the best investment you will ever make. It has the lowest risk, yet it can give you the highest return. Invest in your financial and investing knowledge. The more knowledgeable you are, the more you will make informed investment decisions. You can also work to improve your skillset, to make you more valuable in your work.
7. Clear off your debt.
While paying your debt may not technically give you returns, the money you will save from paying for interests can benefit you. Imagine paying for interest in your credit card debt for years. Clear off your debt as soon as you can. That should be your priority before you commit to any financial investment.
There are other alternative investment options available that you can try. Whatever you choose, it is essential to do your research and create your investment plan. Establish your goal and how you plan to get there. On top of this, do not forget to be patient. The returns may not come overnight, but when they do, you will be thankful for the investment decision that you made.