When the time comes to consider investing your money, the average person takes their business directly to Wall Street, as if it’s the only place to go. That’s not something to be scoffed at, of course, but educating yourself about your alternatives is wise. Sure, there is a long history of money made and money lost in stocks and bonds, and millionaires have been made trading in that intense arena. But that market is volatile. For investors looking for safer – and often calmer – alternatives to Wall Street, here are three reasonably safe alternative investment options.
Stocks, bonds, and cash aren’t the only options for wealth. There are private equity funds, hedge funds, senior life settlements, and even material goods like gold, art, or wine, which typically hold their value or appreciate. Without touching on popular choices like real estate and venture capital, we’ll explore three considerably safe investments.
The below investments aren’t exclusively for people with a great deal of money. Even with a comparatively low amount of capital, these are all possible, and potentially quite lucrative. The trick is this: knowing which are the investments you can instinctively understand. Often, it’s helpful to put your money into something in which you are highly interested. Then, it won’t take much discipline to help you keep a close eye on what your money is doing.
Where (Else) To Put Your Investment Capital
- Purchasing art. Historically, art doesn’t gain and lose value along with the market. If you can afford to purchase known quantities, you can be reasonably certain you won’t be losing money. And if you’re a connoisseur, or are savvy about it, purchasing the work of up and comers can see extraordinary returns on the initial investment. Of course, it’s not without some costs to consider, such as art insurance, authentication (in cases of possible forgery), and so on.
- Wine. Purchasing wine is actually more than a stable investment – it’s a virtual guarantee of return on investment. As wine ages, it appreciates, often quite predictably. The trouble is keeping abreast of things in Wine Country and knowing which vintages oenophiles and collectors desire. Typically, French Bordeaux has a slightly higher return than others, but someone with a nose for wine and a head for business could stand to see a steady ROI of as much as 15% annually.
- Senior life settlements come up in many conversations when people who are older begin considering financial options. As a method of acquiring liquid wealth quickly, or a way of recouping premiums paid over many years, these settlements – which involve selling an existing life insurance policy to a third party, rather than allowing it to lapse or recovering its cash value.
Why Choose To Purchase Life Settlements? Life settlements aren’t considered overwhelmingly high risk. In fact, they’re conservative investments, while still allowing double digit returns. When purchased from someone who would otherwise let the policy lapse for a surrender sum, the secondary purchase price is often greater, allowing for significant return on investment.
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Ashely is a recent college graduate with a degree in writing. She likes to share investment tips and ideas. To see more, check out her Twitter @ashelymarie1985.