Stocks and bonds are among the most popular investment opportunities available. But all good investors know that the best investment portfolios include a variety of financial ventures. Here’s a look at five alternative investment options to help investors protect their cash and diversify their portfolios.
Gold Coins and Bullion
Gold has been one of the most desirable investments for centuries. While the price of gold can fluctuate slightly based on speculation, it’s typically considered a safe investment. While investors shouldn’t solely invest in gold, small amounts should be part of any strong investment portfolio. The good news is that even small investors can successfully purchase gold coins or bullion, so it’s a good investment opportunity for anyone.
Build Your Own Business
Building a business can be a great way to earn passive income and boost an investment portfolio. This doesn’t necessarily mean investors should quit their day jobs. Rather, a side business can generate wealth. For example, business leaders could build a business around consulting or training services. Another option is to turn a hobby into a business. For instance, an investor who collects antiques may be able to set up a side business as an antique dealer.
Cryptocurrency is still considered an emerging investment opportunity. While this fact does make it a riskier investment than some other options, it also makes it a great time to invest. Investors can use popular exchanges, such as Coinbase, Gemini, and Kraken, to purchase cryptocurrency. Due to the volatility of this investment, it’s recommended to limit any investment in cryptocurrency to just 5 to 10% of an investor’s overall portfolio.
There are several ways to invest in real estate. First, investors can buy real estate to use as a rental property. While this type of investment can provide passive income, it can also be costly to maintain. Secondly, investors can buy properties low, such as through foreclosures, and sell high. Finally, investors who don’t want the stress of managing properties can invest in Real Estate Investment Trusts.
Venture Capital Investments
Rather than building their own businesses, investors can invest in other people’s businesses through venture capital investments. Typically, investors provide seed money for startup companies in the very early growth stage. Investors, in return, realize a return on their investment when the company goes public or is sold. Investors who want to play it safe can invest in venture capital funds, which spread their investment over several startups.