Investing is no longer purely for the highbrow: millions of Americans choose to put their trust in the stock market every year. Investing in the stock market certainly has its benefits and drawbacks, which have been explained and analyzed in thousands of articles, books, and expert thinkpieces. There are, however, a variety of other options that potential investors can choose to invest in. Here are four unique potential areas of investment that many don’t immediately consider when they begin.
- Luxury Apparel
The basis of this investment is in the concept of fractional investments, where you invest some money, along with several others, into designer bags or even racehorses. Birkin bags, for example, can run anywhere from $50,000 to $150,000, and this type of investment operates in a similar way to regular equity markets. So you can invest in designer apparel, expensive jewelry, or other luxury items that are expected to become more expensive with age.
- Global Real Estate
Whether you hope to own foreign property yourself or intend to rent it out, investing in homes in Mexico or France can serve you well in the long term. Real estate is typically a profitable investment in the first place, and global real estate might even give you an excuse to travel. What’s not to like?
When you invest in gold, you’re investing in gold bars or coins, typically. You also can consider mutual funds and exchange-traded funds, which invest in shares of mining companies — a roundabout option to invest in gold. Be sure to do your research, though, so you find an option that best fits your situation and a reputable dealer to help you through the process.
- Government Bonds
One of the safest options for investment, government bonds typically don’t grow in value at the same rate as other investments — but they also don’t drop as radically due to market fluxes. You can buy treasury bonds (“treasuries”) through TreasuryDirect, money market accounts, or from a broker. There are other types of bonds, too, though, such as municipal bonds from local governments.
If you’re just beginning to invest, these options might seem overwhelming at first. This is understandable! There are a motley of potential investments, but it’s up to you to find the type that best fits your life situation. You should consider how much you’re willing to invest in the first place, how soon you hope to see a return, and how long you can let the investment sit. Remember to do your research, chat with an expert, and be patient!