Not Only Stocks: Investing Activities Without the Stock Market

By some measures, investing is the number one way to go if you’re starting to think about saving for retirement. When you invest your money, you can watch it grow over time, sometimes in marvelous and unexpected ways.

Beginner investors have a lot of questions, though. “Where should I invest and how much?” If you’re getting started in investing, your first instinct will be to head to the stock market.

There are investing activities you should consider beyond the stock market. Continue reading below to find out more about all the investment opportunities available to you. Your life after retirement will thank you for the planning.

Real Estate Investments

One of the most popular alternatives to stock market investments is real estate. There’s a lot of ground to cover in the real estate market, making it both exciting and challenging.

Investing in real estate is no easy task, though. You can’t expect to start buying up properties and turning attractive profits.

You need to do a bit of your own research and decide whether or not you can handle it.

Once you get a grip on some of the basic concepts, you can start buying and selling properties. Many people decide to rent out properties, which can cover any mortgage costs as well as provide an extra stream of income.

Properties have a tendency to increase rather than decrease in value over time. This is what makes real estate such an attractive option to investors. You will, however, need to consider the fact that taxes rise with real estate prices.

Precious Metals

Gold and silver are other popular alternatives to the stock market. This may be because the future uncertainty of the global economy is somewhat frightening.

Having gold and silver in your back pocket may be able to save you in the apocalypse. At least, that’s the assumption people seem to carry with them.

People seem to flock to gold in times of uncertainty, meaning it’s demand rises in a crisis. If you own gold, you can capitalize on these moments to make a bit of a profit.

However, gold and silver tend to come with dramatic lows. This makes them, in some opinions, a riskier investment than any stock.

Additionally, gold may not make the best currency in the apocalypse. People may have more concern over having fresh water than fancy jewelry.

Collectibles and Antiques

These items can make a great investment if you know what you’re doing. Old furniture, art, and toys can become hot selling items at a moment’s notice.

Consider Lionel model trains. While not all models today are worth very much, some have sold for $15,000 or more.

Maybe it’s time to start rummaging through the attic to find old toys.

It can take decades or longer for these items to appreciate value. The key word here is patience. If you think something is cool now, hold onto it for a while.

In a few years time, you may be able to sell it for far more than you ever imagined.

Until then, it may just make a nice showpiece in your home.

Peer-to-Peer Lending

Peer-to-peer lending is exactly what it sounds like. It’s a new trend in the moneylending game, where investors unaffiliated with a bank or lending institution offer loans.

Often, this is through an online P2P service. Once a borrower qualifies for a loan, the investor funds the loan with their own money. Often, the investors’ funds are all pooled into the same fund.

Like a traditional loan, the borrower must pay back the loan plus interest.

This is an investment opportunity which removes the bank as the middle-man and benefits both the lender and the borrower.

Using a P2P service can mitigate some of the risk involved in the lending process. Because your money is pooled, your investment is spread out over many loans.

If one borrower defaults, the impact won’t be as great as if all your money had gone to that borrower.

High-Yield Savings Accounts and CDs

Interest rates at the moment rest much higher than average, making it a good time to put your money away.

You can find a variety of different accounts offering interest rates higher than 2% APY. The best part? You can take care of everything without ever leaving your home.

In addition to these high-yield accounts, you may notice attractive certificates of deposit (CDs). One sound investment strategy is to build a CD ladder.

Building a CD ladder is simple and straightforward. You divide your initial investment among two or more CDs which will mature at different rates. As each matures, you roll over the funds into a new CD.

For example, suppose you start with a $15,000 initial investment. You can divide the money among 5 CDs, maturing at 1, 2, 3, 4, and 5 years. When the first matures after 1 year, put the money into a new 5 year CD.

Follow this pattern until you’re ready to cash-out.

Wine

Everyone knows wine gets better with age, but only if you take care of it well! If you have a bit of knowledge of wine, you can start buying up coveted bottles.

Allow them to age in a temperature-controlled room. You’ll need a substantial space to store your new wine collection, as you’ll need many bottles to see a nice return.

Because you’ll deal with serious wine connoisseurs, you’ll want to know exactly when and where you purchased each wine.

You may wish to take this investment a step further and open your own winery or vineyard.

Investing Activities Beyond the Stock Market

The stock market can be a great place to test your skills and make a passive income. However, some people don’t trust the stock market. Some just want to diversify their investments.

Investing activities go well-beyond stocks, you can rest assured. From real estate and savings accounts to toy trains, your options are plenty.

Do you want to learn more about retirement? Click here to learn why you might want to hire a financial advisor.

Luke E. J. Will

Luke E. J. Will was born and raised on a farm in Watertown, WI. His values and ideals were shaped by his hardworking family and are embedded into the relationships he builds with his clients. Luke has built Navigation Wealth Management with Kurt Zipp to deliver the “Navigation Way” of financial planning and asset management to his clients from all walks of life. The “Navigation Way” is built upon Trust, honest conversations, and understanding his clients financial goals.Luke attended the Wisconsin School of Business at the University of Wisconsin-Madison, where he earned his Bachelor’s degree in Finance, Investments & Banking.His favorite hobbies are hunting and fishing with family and friends. He is loves spending time outdoors including snowboarding, skiing, kayaking, and camping while spending any extra hours with his family, watching all the sports teams in Wisconsin play. Traveling, music concerts, and reading are few other interests.