Discover 3 Places to Invest Your Money—Outside the Stock Market and Worthy of Your Consideration! - Cabot Wealth Network

Discover 3 Places to Invest Your Money—Outside the Stock Market and Worthy of Your Consideration!

Learn all about three outside-the-stock-market investing opportunities when you read the September 2020 issue of our Magazine, just released!

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I’m always thinking about where to invest during cycles when the market goes down. And while I always have some money in the market, it doesn’t hurt to investigate other types of investments, too.

I’m talking about alternative investments, financial assets that usually are not included in your 401(k) options. They don’t fall into one of the conventional investment categories like stocks, bonds, and cash. Instead, alternative investments can include private equity or venture capital, hedge funds, real property, commodities, and tangible assets, such as art, coins, bullion, wine, and antiques.

Alternative assets can be an attractive way to increase the diversification of your portfolio. In general, they have a low correlation with standard asset classes—meaning that often, if stock and bond markets go up, their value goes down—and vice-versa. They can also be a great hedge against inflation (which decreases the purchasing power of money).

In the September 2020 issue of our Magazine, we delve deeper into my three favorite—and some of the most popular—alternative investments.

Alternative Investment Opportunity #1: Physical Real Estate

Investing in real estate properties is the most common alternative investment. There are three main goals in real estate investing: 1) invest in a property that is undervalued and flip it to make money; 2) buy a fixer-upper, rehab it, and flip it; and 3) buy a rental property to generate long-term income.

The downside is you need to thoroughly investigate the overall real estate market, the rental market, the investment opportunities, and location, location, location—before you buy. Just like with a stock, when you buy what you consider to be an undervalued company, if no one else wants in on it, you could be holding that stock for a very long time, waiting for it to appreciate. It’s the same with real estate; you need to do your homework (and hopefully, have a good real estate broker to help you), to ensure you are buying in a good flip or rental market, and in the right location.

When you read this article in the September 2020 issue of our Magazine, you’ll get eight specific action-oriented tips when considering buying real estate to diversity your portfolio.

And learn all about real estate crowdfunding—what is it, how does it work, and what are some limitations of real estate crowdfunding?

Alternative Investment Opportunity #2: Fine Art

People have been investing in art for as long as there have been artists. During the Renaissance, the Medici family was famous for many things—wool, banking, science, and architecture. But their greatest claim to fame was backing artists. For more than 200 years, various family members were patrons to a variety of artists, including painter Masaccio, architect Brunelleschi, and artists Michelangelo, Raphael, Donatello, and Leonardo da Vinci.

And art has been a good business for investors. Between 1985 and 2018, Citibank says that the art market’s return has been relatively in line with that of fixed income (although more volatile). The market averaged returns of 5.3%, with contemporary art the leader, posting gains of 7.5%.

During the same period, investment-grade bonds from developed countries returned 6.5%, while global high-yield bonds averaged 8.1%.

You don’t have to be a billionaire to be a collector. But you need to know what the risks are and how to get started with investing in art. In this article in the September 2020 issue of our Magazine, you’ll get our advice with the beginners’ two-step, get-started method for approaching art-investing opportunities. And once you’ve established your art-investing approach, you get four key questions you should answer before buying a single piece of art. Read this article now!

Alternative Investment Opportunity #3: Gold

Investors have had a very long love affair with metals—gold, silver, platinum, especially. There’s just something about holding the metal in your hand that feels really special. Sure, you can buy shares in a gold mining company, a mutual fund or exchange-traded fund (there are 9 ETFs just for gold!), to give you exposure to the metal, but many investors opt for the real thing. After all, the stocks and funds can go up or down, independent of the actual metal’s price, and can carry risks, such as geopolitical, natural disaster, and undeveloped country labor risks that you won’t incur when you own the actual metal.

The value of gold is determined by the market 24 hours a day, seven days a week. And, as you can see from the chart below, it can fluctuate wildly.

100 Years of Gold Prices Chart

When you read this article in the September 2020 issue of our Magazine, you’ll get specific advice about buying gold bullion and bullion coins, plus collectible coins. Find out what to consider, how to buy them, and where to buy them with this article. You even get a list of the ten best gold coins for investing and the seven most valuable collectible coins today!

If you choose to invest in any of these three classes of alternative assets—real property, fine art, or gold—you’ll not only have an actual real asset that you can touch and show off to your friends, but you will also increase the diversification of your investment portfolio, and that’s a smart move.

Get this article about where to find worthwhile places to invest besides the stock market—and everything else in the September 2020 issue of our Magazine—including:

Get instant access to all the articles in the September 2020 issue of our Magazine—right now!

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