Historically, the stock market has been one of the best long-term wealth sources. Therefore, it’s often the first idea that comes to mind when many people consider investing.
However, there are several other investment opportunities out there that you can consider besides investing in stocks to build your wealth. Below are four classic examples of where to invest outside the stock market.
1. Real Estate
Real estate is an excellent investment avenue because it’s tangible and offers relatively passive income. A considerable advantage of real estate development is the chance to dabble in several sub-specialties, so you can invest in commercial property, rental houses, storage units, and apartment buildings, among others. As a property investor, you’ll undoubtedly need bridge loans at a certain point to fund new real estate projects while waiting on your listed properties to sell. Reliable lenders such as NorthWest Private Lending can provide financing products to suit your investment needs.
NorthWest Private Lending is a private lending company offering fix and flip loans, real estate acquisition and refinancing, credit repair, and bridge loans in Oregon and Washington. Bridge loans are short-term loans that borrowers take while awaiting larger or longer-term financing to meet immediate cash flow needs. However, this loan will carry a higher interest rate and origination cost than a long-term conventional loan. Northwest Private Lending can help by offering you a bridge loan and putting a lien on your property for sale, and then you can use the sales proceeds or a portion of it to pay down the loan.
2. Fine Art
Fine art ownership is another unique way to invest in something besides stocks. You can invest in pieces from recognized artists like Picasso and Da Vinci or in art from the contemporary or Post-War era. However, you need to ensure that you purchase legit artwork instead of counterfeits, so keep this in mind. Several alternative investment platforms can give you access to invest in art pieces. Esteemed digital wealth management platforms such as Yieldstreet can assist with this need.
Yieldstreet, an alternative investment platform, offers investors the opportunity to build wealth through portfolio diversification. Yieldstreet offers products across several asset classes that can be accessed with cash or a low-fee IRA. Yieldstreet investors can invest in alternative assets like litigation finance, marine finance, commercial finance, consumer loans, and acquiring fine art from art dealers. Previously, you needed a net worth of at least $1 million or a personal annual income of $200,000 (or $3000,000 combined with your spouse) to qualify for alternative investing on Yieldstreet. However, the Yieldstreet Prism Fund currently allows you to invest with a minimum amount of $1,000. The question “Is Yieldstreet legit?” is a common concern for people looking to explore Yieldstreet’s investment opportunities. It’s important to note that the Yieldstreet platform is registered with the Securities and Exchange Commission (SEC) and has returned more than $800 million in principal and interest payments to investors, so it’s undoubtedly safe for alternative investing.
Gold has a solid reputation as an excellent inflation hedge, a highly liquid asset, and an enduring store of value. Consequently, it’s worth considering as a reliable alternative to stocks. Gold is also a great diversifier and can act as a rescue asset in challenging times because of its low correlation with other asset types. Physical gold coins and bars, gold accounts, or gold-exchange-traded funds (ETFs) are three ways to invest directly in this precious mineral.
Cryptocurrency is rising fast as one of the most substantial stock market alternatives in the modern world. As such, it’s worth considering, especially if you’re interested in holding digital assets. Bitcoin, Ethereum, and Dogecoin are three popular cryptocurrencies you should consider investing in this year. However, the downside is that cryptocurrency is a highly volatile asset class, so it’s prudent to invest in these digital monies on a short-term basis.
There are several stock market alternatives that modern-day investors can consider to build wealth. The above-listed points are four great examples of investment ideas you should try out besides stocks.