If you’re looking for investment ideas other than stocks, try these suggestions on for size. Young people will love them!
Over 70 percent of millennials say they find investing in the stock market as “scary and intimidating”. This needs to change!
But, investing in stocks is not the only way to invest your money.
In fact, there are different kinds of investment ideas other than stocks that can make your money grow in value over time.
Would you like to find out more about alternative investment ideas? Check out our suggestions below!
- Pay off Any Debt
The number of young people with mounting debt is increasingly worrying.
If you have any kind of debt, the best way to invest your money is by paying your debt off.
If you have a credit line with a 10 percent interest rate, by paying it off you’ll receive equal to a 10 percent rate of return on the same amount invested elsewhere.
And best of all, you don’t have to pay any income tax on the amount earned from paying off your debt. That’s why if you have any debt, it’s important you pay it off before you consider any other kinds of investment.
- Peer-to-Peer Lending
Do we even need bankers? Well, maybe we don’t. Peer-to-peer lending cuts out the middle-man. Instead of lending and borrowing your money from the bank, you simply exchange money between other people. As a result, the lender receives a greater rate of return and the borrower has a lower rate.
And best of all, since the lender doesn’t have to charge any additional fees for borrowing, the borrower has a greater chance repaying the money they owe.
It’s win-win!
By lending money via at a peer-to-peer lending company, you ensure your loan portfolio is diversified. Through diversification, you spread the risk of lending your money. If you lend to hundreds of people, even if one or two fail to repay the loan, you won’t lose out much because the majority of borrowers will.
Besides, with the interest rate, you’ll be compensated for any loss.
- Gold and Other Precious Metals
Have you ever wondered why in times of economic uncertainty people often turn to gold?
It’s because gold has maintained its value throughout the years. As a result, many people believe precious metals, such as gold, are the most reliable way of investing your hard-earned money.
However, gold isn’t always a safe investment. If it was, everyone would invest in gold more.
Precious metals fluctuate in value mostly along the value of the US dollar. When the dollar is weak, precious metals rise in value. When the dollar is strong, the value of precious metals falls.
You can never predict exactly when the market conditions will emerge to make investing in precious metals advantageous. That’s why you may consider purchasing some gold or silver just in case.
If you do choose to buy some, don’t forget to keep your precious metals in a safe place.
- Invest in Real Estate
We all know the challenges of getting on the property ladder for young people.
However, there are signs that things may be looking up for homeownership among the young. Maybe the “American Dream” is alive after all.
If you’re looking for a way to invest your money, there are few better places than real estate.
Unlike many other kinds of investments, by buying property you also have something with genuine utility. You can actually live inside your investment. You can’t do that with stocks and shares, can you?
But, even if you choose not to live in your real estate investment, you can also generate income by renting it out. It’s not only the income generated from rent that you gain from investing your money in real estate.
That’s because U.S. house prices are expected to rise at twice the rate of inflation and pay. This makes real estate one of the most profitable ways to use your money for the future.
You may also be able to benefit from a number of tax benefits which help younger people get on the property ladder.
- Certificates of Deposit
Certificates of Deposits (CDs) are “time deposits.”
Although the returns on money market funds are extremely low at the moment, you can increase your returns by investing in CDs instead.
In times when the market is volatile, investing in CDs is a really safe bet. The financial product is held by your bank and insured by up to $250,000.
The best way to invest in CDs is by developing a ladder. This is when your investment portfolio is staggered over a number of maturity dates. Each CD you invest in can be timed to mature at a specific year. By assigning a one, two, or three-year CD investment, you can benefit from the higher rate of a longer-term investment.
- The U.S. Treasury Securities
If you don’t like the sound of CDs, the U.S. Treasury securities are slightly different. The U.S. Treasury is the highest rated debtor in the world. Therefore, the interest rates you’ll receive are quite low.
You can choose between a number of types of treasury securities. These include bills, notes, bonds, and inflation-protected securities. All of which come with different advantages and disadvantages.
However, it’s important to know, you’re not going to get rich quick by protecting your money with the treasury. But if you want to keep your money safe while the market is uncertain, there’s no safer place.
- Art and Other Treasures
From a low-risk investment to a high-risk investment. You’ve probably heard about people making money by investing in all kinds of treasures.
You need to know about the items you’re investing in before you buy. What kind of resale value can you make?
Many times, these kinds of investments are long-term. For example, a comic book edition available to anyone with a spare dollar in the 1980s could be worth hundreds of dollars now.
You may simply invest your money in a collectible that you want to have anyway. Don’t concentrate on how much it’s worth down the line. Then, when the times comes, you could investigate how much the item is worth.
Wine and whiskey are two kinds of consumables which increase in value over time. Especially if you buy the right ones.
However, don’t go into this business, unless you know a bit about how to store wine and other liquors. You may also require a room to store the bottles which are temperature controlled.
According to research, you can earn up to 15 percent per year, by investing in the right wines.
- Cryptocurrencies
You have probably already heard rags to riches stories of cryptocurrencies.
Bitcoin was worth absolutely nothing in 2010. Now a single Bitcoin is valued at $6,000 in 2018.
While Bitcoin makes the headlines, there are many more cryptocurrencies which have emerged to offer an alternative investment.
Which is the next cryptocurrency to emerge? Are cryptocurrencies the future of banking and money?
If you can get this right, you could find yourself a winner. One way to maximize your trading profit by using a binance trading bot.
- Invest in a Small Business
With over 27 million entrepreneurs in the U.S. alone, an increasing number of people are setting up start-ups.
This is a risky business.
After all, 90 percent of startups fail!
However, you don’t have to risk everything for an idea. You can invest in an exciting startup. It’s not easy for startups to receive funding for their projects.
By becoming a silent investor in the business, you’ll be entitled to your share of the income generated by the company.
You never know if you’re going to invest in the next Apple or Netflix.
- Invest in Yourself
Do you want to know where you can receive the greatest investment from your money? It’s by investing in yourself!
You’re a pretty low-risk investment. By investing in yourself, you can improve your ability to earn more money in your career.
That’s why you should go to college or university. Get qualifications and training in areas which will improve your resume.
Although you may not receive the benefits of investing in yourself immediately, over time you’ll thank us.
Investment Ideas Other Than Stocks
Now you know you don’t have to put your money in stocks.
If you want to invest your money for a quick gain or for your long-term future, stocks are not always the best option.
Explore our alternative investment ideas other than stocks by giving them a go yourself. What have you got to lose?
For more financial advice and tips, check out our personal finance blog! If you’re looking for a way to invest your money, check out real estate expert. Than Merrill’s Twitter and you will see that there are few better places than real estate.
