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Tory Reiss understands that sometimes, people aren't always willing or ready to invest in the stock market. However, that does not mean that there isn't another way to save. Check out this presentation, based off of a blog post of the same name on his personal finance blog. What do you think other alternatives could be?
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Tory Reiss Presents
Investment Alternatives
From BareNakedAssets
Alternatives?
❖ While the Stock Market is a good choice, some people may want to play outside the market. Some alternatives include…
❖ Real Estate
❖ Art and Collectibles
❖ Precious Metals
❖ Wine
Real Estate
❖ There are actually many ways to invest in real estate.
❖ Rental Property
❖ Real Estate Investment Trust (REIT)
❖ Notes
❖ Crowdfunding
Rental Property
❖ Straightforward, Traditional, and Simple
❖ Involved: Owner=Landlord
❖ You must invest time and resources into maintenance
❖ Some firms offer to do that for you, but be aware they can cut into profits.
REITs
❖ REIT (rhymes with “treat) is an acronym for “Real Estate Investment Trust”
❖ Less hands on than investing in a rental property
❖ Like a mutual fund, but investments are in real estate properties, not securities.
❖ Investor gets regular dividends
❖ Can be bought and sold on the public exchange
Notes
❖ Actual paper notes and mortgages. Just what it sounds like.
❖ Works like any other real estate property
❖ Brokers are available to help you with purchase
Crowdfunding
❖ Increasing in popularity
❖ Crowdfunding a project? Why not crowdfund an investment?
❖ Can be legally murky
❖ Loopholes have allowed online portals to connect interested investors
Art & Collectibles
❖ Intrinsic investment with (potentially) positive externalities
❖ Value is independent of Stock Market
❖ Low priced art can outperform higher priced pieces
❖ Biggest rule: make sure it’s something you like
❖ Not very liquid; could have it on your hands for a while
Precious Metals
❖ Think gold, silver, and the like
❖ Price of gold has been rising steadily
❖ Also independent of the stock market
❖ This does equal immunity from value fluctuations
Wine
❖ Solid (and tasty) investment
❖ Barriers to entry: Terminology, vernacular, and other details
❖ Great example of turning a hobby into an investment
❖ Returns can be high (as much as 6%-15% annually).
