Stocks. Bonds. Mutual funds. If you’re a traditional investor or just someone who has their retirement funds tied up in an IRA, you’re probably familiar with these options. But there are many other investment types that you could pursue, whether you’re looking for short-term returns or long-term gains.
If you’re looking for new opportunities, here are five types of investments you should consider.
1. Equity Crowdfunding
Do you wish you could get into private equity, but you don’t have enough capital? You might be able to use equity crowdfunding. This is when private companies and start-ups raise money from a large number of people at lower investment levels rather than seeking huge investments from venture capitalists.
At this point, you’re probably familiar with Bitcoin. Even though it’s the leading player in the cryptocurrency world, it’s far from your only investing option. You can also invest in other coins and tokens, including through ICOs (or initial coin offerings) that companies use to raise funding.
3. Income-Generating Property
There are several ways to invest in real estate. For example, you can purchase and manage income-generating rental properties. Another option is to invest in property at a low price and flip it (fix it up and sell it at a profit).
While flipping real estate isn’t an uncommon investment, you might be missing out if you stick to the traditional housing market or even foreclosures. You should consider taking part in tax deed auctions. This is when abandoned properties are taken over by municipalities and then sold when the property taxes aren’t paid. You might even be able to take advantage of bundled tax deeds to purchase multiple properties at once.
4. Art and Other Real Assets
If you’re looking for somewhere to keep your money in the long haul, real assets might be a good fit. “Real assets” are physical things you can buy, and their value can appreciate over time.
Buying art is a good example of real asset investing. You don’t necessarily need tens of thousands of dollars to invest in art. You may see better returns by taking a chance on newer, upcoming artists.
Other examples of real assets you can invest in are jewelry, land, antique cars, or natural resources.
5. High-Yield Savings
If you aren’t ready for high-risk investments but still want your money to work for you, a high-yield savings account might be a good place to start. These are an especially good option for money you don’t need immediately but also don’t want tied up in long-term investments.
These work like traditional savings accounts, except you’ll earn as much as 2% interest on the money you’ve got in the bank. That might not sound like a lot, but savings accounts are FDIC-insured.
Whether you’re looking for new investments with higher yields or safe ways to earn a bit of money with no added effort, there’s an investment type for everyone.