Stock market alternatives for smart investors

When people think of investing, they automatically think of the stock market but there are plenty of alternative investment options available. Whilst the stock market can be a viable form of investing, there are many other ways you could get a good ROI and increase your funds.

If you want to invest and you’re keen to make your money work for you, why not consider these alternative investment opportunities?

Collectibles

Image by MichaelWuensch from Pixabay

If traditional investing isn’t for you, getting involved in the collectibles market could be a great way to build cash. Antiques are the obvious choice but art, comics and graphic books can also give you a great ROI if you invest wisely. Similarly, cars can be a good choice for investors who want to put their money in collectibles, particularly if you have the skills to carry out any work which may be needed.

Although this type of investment won’t necessarily enable to get rich quick, it can be a fun way to invest your money. However, it can take quite a while for collectibles to build in value, so you may not see a significant return for a few years but if you’ve got a particular hobby or interest, why not make some money from it?

Savings Bonds

With fixed and variable-rate savings bonds issued by the Treasury, you can decide whether to opt for a confirmed rate of interest or gamble on an inflation-based variable rate when you buy a savings bond. Either option presents a relatively low-risk investment opportunity, but the interest you’ll accrue can be surprisingly high.

When you purchase savings bonds, however, your money will be tied up for a specific amount of time. Many bonds are designed to mature over a period of five years, for example. During this time you may be unable to withdraw your money or you may have to pay high penalties for doing so.

If you’re sure you won’t need the cash until the bond matures, a savings bond can be an ideal way to save your cash and obtain a good rate of interest.

Savings Account

You may already have a savings account, but is it doing enough for you? Take a look at what’s available and compare any existing accounts to the current offers on the market. If you could be earning a higher rate of interest elsewhere, it may be time to switch your account to a different provider, or perhaps ditch the bank altogether.

Although savings account don’t generally offer a high rate of interest, they are a secure way of investing your money and getting a return on it. As one of the lowest risk investments available, using a savings account is a way of ensuring your investment is safe but increasing at the same time.

Furthermore, a savings account gives you increased flexibility because you’ll be able to withdraw or transfer the cash if you need to.

If like many people, banks aren’t your preferred place to store money, credit unions and online banks are an ideal option for you.

Image by Pexels from Pixabay

Real Estate

Buying real estate can be one of the best investments you can make, but buying the wrong property can be disastrous. Before you begin investing in real estate, make sure you do your homework and get professional assistance when it’s needed. You should always have building inspections carried out before you purchase a property, for example, so that you can ensure your investment isn’t going to be wasted on an unsafe building. Once you’ve verified the condition of the property and negotiated terms, your investment can begin to make money for you.

Whether you want to purchase a property and sell it on or rent it out tenants, there will be some bureaucratic issues to contend with. The law governs landlord-tenant relationships, for example, so you’ll need to ensure you’re able to fulfill any necessary obligations as a landlord or homeowner. If you’re able to do this, investing in real estate can give you a great return.

Cryptocurrencies

Designated as a digital asset, cryptocurrencies have been one of the fastest growing forms of investment in recent years. As well as allowing you to pay for things online and make secure financial transactions, cryptocurrencies have also delivered a whole new investment opportunity.

Overall, the cryptocurrency market has soared in recent years, with early investors getting astounding returns. However, this doesn’t mean that every cryptocurrency investment has been successful. In fact, cryptocurrencies are one of the most volatile markets you could invest in.

Although Bitcoin is the most recognized type of cryptocurrencies, others have come to the fore in the last two to three years. As a result, there are now more investment opportunities and more chances to make a good return.

However, cryptocurrency investors could face an additional hurdle when it comes to realizing their assets. Many jurisdictions have yet to regulate cryptocurrency trading and if your region or country does outlaw this type of trading, you can lose what you already own in digital assets.

Whilst this type of investment does have its drawbacks, it can provide a solid investment opportunity. Providing you understand the technology, the volatility of the market and how it performs, investing in cryptocurrencies could be the right choice for you.

Choosing Investments Wisely

You should conduct as much research as possible before you commit to any type of investing. If some offers and opportunities may seem too good to be true, there’s a high chance it’s a scam of some kind so make sure you’re investing in reputable and reliable markets and using certified brokers when you need to.

Furthermore, any investment carries a risk. Whilst high-risk investments can bring high rewards, you could lose some or all of your original investment too. Due to this, people are typically advised to limit their investments to a figure they can afford to lose.

Being aware of the dangers associated with the highest risk opportunities helps you to make informed decisions when it comes to your investment portfolio. Rather than focusing solely on investments, you may want to diversify so that you have a mix of high, medium and low-risk investments as this can help to reduce the overall risk.

Whatever option you go for, investing your funds can be an exciting way to obtain a good return, and you may be surprised at how much you can make from the right investment decisions.

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