Thursday, August 6, 2020
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9 Creative Investment Ideas That Go Beyond the Stock Market

Have you been curious on investing your business earnings but do not want to get into the stock market? Explore creative investment ideas.

It’s a difficult time to manage or make new investments.

With conventional options underperforming, and economists warning that a surge in new COVID-19 cases could spark a long-term economic downturn, many investors are looking for new avenues into which to put their resources.

With the future performance of stocks and bonds unclear, here are some creative investments for you that can help you to insulate your portfolio.

1. Open a Roth IRA

Somewhat a basic option, but one which everyone should explore regardless of the health of the economy.

For those who qualify, Roth IRAs offer long-term tax benefits, allowing you to invest post-tax dollars today and let that money grow tax-free until it’s time for retirement. They’re also an accessible option, with your yearly contributions being limited to $6,000 at the most.

And depending on where you open your Roth IRA, your investment options can include a wide slate of traditional stocks and bonds, mutual funds, ETAs, and alternative investments. This variety gives you added security against unpredictable markets.

2. Collect on Hoards of Old Currency

One creative investment is to put your money into alternative currencies. And we’re not talking about cryptocurrencies.

Investing in old coins is nothing new, but sales of particularly ancient coins have skyrocketed in recent years. The apparent cause is rising demand among Asian investors and collectors, many of whom are repatriating coins taken from the region.

It’s big business and has led to the rise of boutique investment firms who specialize in ancient currencies. These firms retain a small army of experts to identify and appraise coins recovered by treasure hunters.

Some, like the Double Gold Leopard coin, circa the 14th century, have been valued at more than half a million dollars, so old coins can fetch no small sum.

3. Invest in Rare Memorabilia

Old coins aren’t the only rarities that can fetch high prices from collectors. You might not have to explore shipwrecks or raid old treasure hoards when you might have some rare collectibles tucked away in the attic.

Military memorabilia tends to see the most fluctuation as public interest in certain periods wax and wane. Medals tend to fetch the highest prices, and since they are easier to preserve than other items make the best long-term investments.

But many pieces of military memorabilia can demand high prices. Anything related to the marines circa WWII, authentic flight jackets, and autographed photos of late military leaders are all desirable collectibles.

Military memorabilia is just one example. If you can think of anything antique or uncommon, there’s probably a community dedicated to collecting it who’s willing to pay a premium.

4. Get a Health-Savings-Account

For a less-exotic but still unconventional idea, you could consider opening a Health-Savings-Account (HSA).

An HSA is an account available to individuals or families with high-deductible health plans. They offer tax benefits, like allowing contributions to be deducted on your taxes. Your investment then sits and grows tax-free until you withdraw it to cover a qualified health-care expense.

But probably the best part is that once you turn 65 the balance can be withdrawn penalty-free for any reason.

There are limits to how much you’re allowed to invest in an HSA, as dictated by your deductible and your family situation. But even if you’re only allowed to make a modest contribution, the tax benefits make it worth your effort.

5. Peer-to-Peer Lending

Another platform to consider if you only have a modest amount to invest is peer-to-peer lending platforms.

Lending Club is one of the biggest, and as an investor, you have the option of spreading your investments over hundreds or thousands of loans in increments as low as $25. You only need $1,000 to get started, and you can automate your investments based on your pre-selected criteria.

6. Horse Breeding

You might not have the means to invest in a full-blown stud farm, but even those of us with moderate means can still make a profit by horse-ownership.

With a high cost of entry and above-average risks, ownership-partnerships are a popular means of spreading out the expense and risks of racehorse ownership. You’re essentially crowd-sourcing a racehorse.

Investing in a horse by no means guarantees a return. But with prize purses steadily increasing over the last several years, the potential returns can be huge. So for the investor who doesn’t mind taking some chances, becoming a partner on a horse can be one of the more exciting options.

7. Online Real Estate Investing

They say that land is the only thing that lasts, and its value certainly reflects that. But despite the high return potential, not everyone has the means or inclination to be a landlord. But just like with horse-raising, there is a solution.

Services like Fundrise have popped that allow small investors to come together to invest in private real-estate holdings. And best-of-all, you never have to raise a finger to do any building maintenance. The services themselves handle that for a nominal fee.

8. Fine Wine

For the investor who enjoys the finer things in life, wine can hold a certain personal appeal. It can also hold significant economic appeal.

The value of fine wine increases as it matures, and can skyrocket by as much as 30% once it’s designated as investment-grade. Reliable vintages are even tracked on an index of fine wines, so you can follow them just like a blue-chip stock.

9. Automated Gold Investing

Much like real-estate, gold and precious metals are commodities that carry inherent value. And they are particularly valued in times of economic distress.

But investing in gold usually comes with a high bar to entry. But services like Investor Crate can lower that bar significantly. For as little as $50 a month, you can subscribe to their crate service to start growing your reserve of gold bullion.

Think Outside Stocks and Bonds for Creative Investments

Making investments now is one of the best ways to prepare for your future. Especially when that future becomes harder to predict every day.

A big part of your strategy should be seeking creative investments. Beyond often coming with fringe perks of their own, they’re a way to help insulate your business and yourself from uncertainty.

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