4 ways to invest your money that is not on the stock market
- I asked financial planners where I could invest my money other than the stock market.
- They recommended art, real estate, and venture capital (through companies like MicroVentures).
- An unexpected suggestion: invest in your career. Your employer can even pay for courses.
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Early last year, when I finally decided to invest some of the unused money in my savings account, I turned to the stock market. I was a newbie investor and didn’t know what I was doing. I invested in companies that I liked or that had great potential, but I didn’t do a lot of research. I have come a long way since then, optimizing my trading strategy to include studying earnings reports and being more strategic with my choices.
As I grow as an investor, I want to make sure that I diversify my investments. That’s why I decided to turn to the experts for advice on other places to put my money outside of the market, in the hope that the money would pay off. Here are the four suggestions that financial planners gave me.
1. Real estate
A good chunk of my friends have turned to real estate investing over the past few years. Some have bought rental properties for passive income, and others have invested in homes to live in with the goal of selling in 10 to 15 years.
Jason Dall’Acqua, a financial planner, says real estate investing has long been a wealth building strategy because it offers the potential for both income and price appreciation.
“Investing in real estate no longer requires a hands-on approach if you just want to be a passive investor,” explains Dall’Acqua. “You can invest in real estate through REIT – Real Estate Investment Trusts – which pool investor money to buy, and sometimes operate, different forms of property. REITs can be purchased on many exchanges, or you can invest directly in certain projects through online platforms such as Fundrise. Consider the risks before investing in real estate and understand how this fits into your overall portfolio strategy. “
While it might not be something high on everyone’s radar, financial planner Carolyn Yun recommends considering investing in art.
“Private art collections can generate significant returns outside of market returns. There is a low correlation with the market, although it is generally limited to those with millions to invest in high quality names. This type of investment is generally illiquid, unregulated, and subject to changes in taste, ”Yun explains.
3. Venture capital
If you’re someone who wants to invest in companies but wants to do so outside of the stock market, Yun recommends turning to venture capital.
“One of the most important growths in a business’s life is in the early stages of its development, before it even hits the market. These days, startups tend to delay their debut on the stock market until they reach significant valuations in the. Those with sufficient cash can take advantage of these returns by investing in start-ups through funds. venture capital, ”says Yun.
If you’re looking to start investing in businesses, Yun recommends MicroVentures, which offers equity crowdfunding for start-ups for as little as $ 100. StartEngine and SeedInvest are other possible options.
4. Your career
For many people, furthering their education and improving their skills can be a worthwhile investment in many ways. Financial planner Marguerita Cheng believes it is prudent to invest in your career and obtain certifications and titles.
“Your employer may be willing to help cover these costs by reimbursing you at the end of your studies. There are tuition discounts and professional development benefits, ”says Cheng.