Building wealth is a common financial goal for individuals. The stock market is a popular avenue for wealth accumulation. But, it's not the only option available. If you're looking for an alternative investment to grow your wealth, we present you with 11 strategies.
11 Investment Opportunities Besides the Stock Market
Real Estate Investment
Investing in real estate is a time-tested strategy for building wealth. The US real estate market offers many opportunities for growth. These can range from residential to commercial buildings, and REITs. Real estate investments can provide a combination of rental income and property appreciation. These offer both cash flow and long-term wealth accumulation.
Real Estate Structured Debt
Commercial real estate structured debt backed involves fixed-income investment products that utilize real estate assets as collateral. These investment instruments, which can include mortgages or real estate-backed securities, offer investors the opportunity to gain exposure to the real estate market without the requirement of owning or managing physical properties. Real estate-backed investments are typically traded in the secondary market, providing investors with a level of liquidity. This means that investors have the ability to buy or sell these investments before their maturity date, providing flexibility and potential for portfolio adjustments. You can invest in these via alternative investment platforms for just $12k.
Investing in a franchise offers several advantages, including the opportunity to operate under an established and respected brand name. By joining a franchise, you can bypass the challenges typically faced by startups, as the business model is already established. Franchises benefit from widespread name recognition and the trust that comes with it, thanks to the extensive national marketing and advertising efforts undertaken by the franchise company. Additionally, you can take advantage of the franchise's collective purchasing power, resulting in lower costs for goods and services. Funding for franchise businesses is often readily available from banks, and the Small Business Administration offers specific funding options for franchise purchases.
Private Equity Funds
Private equity funds aggregate investor capital under professional management to invest in privately held companies for growth. They offer potentially high returns but can involve substantial management fees and long-term capital lock-ups. Direct investment typically requires accreditation based on net worth or income, limiting eligibility for investors with lower financial thresholds.
For investors seeking exposure to real estate without the financial means or extensive research time required to directly purchase properties, real estate investment trusts (REITs) are a viable option. REITs allocate funds to various types of real estate, such as residential housing, commercial buildings, hotels, and warehouses, and distribute rental income to investors. This allows individuals to include real estate in their investment portfolio, even without significant capital or the ability to dedicate extensive hours to property research.
Peer-to-peer (P2P) lending is an alternative investment option. The P2P platforms link borrowers to lenders. As a lender, you can earn interest on the funds you lend to borrowers. However, you must research and assess the risk associated with each borrower before committing your funds.
Building a Dividend Portfolio
Although this strategy involves investing, it doesn't require investing directly in the stock market. Dividend investing focuses on selecting stocks of companies that regularly distribute dividends to their shareholders. By constructing a diversified portfolio of dividend-paying stocks, you can earn passive income through regular dividend payments, independent of market fluctuations.
Investing in Bonds
Bonds are fixed-income securities that provide a predictable stream of income over a specific period. In the US, you can invest in corporate bonds, municipal bonds, or government bonds. By purchasing bonds, you become a creditor and earn interest on your investment. Bonds have a lower risk than stocks. Thus, they are an attractive option for investors looking for stable returns.
High-Yield Savings Accounts
While traditional savings accounts often offer minimal interest rates, high-yield savings accounts provide higher returns on your savings. These accounts are typically offered by online banks and credit unions. While the returns may not match other investment options, high-yield savings accounts offer security and easy access to your funds, rendering them a viable wealth-building strategy.
Investing in Certificates of Deposit (CDs)
Certificates of Deposit (CDs) are fixed-term investments available through banks. By depositing your money in a CD, you agree to keep it there for a specific period in exchange for a fixed interest rate. CDs offer a low-risk investment opportunity, and the longer the term, the higher the interest rate tends to be. This strategy allows for steady wealth growth over time.
Rental Properties and Airbnb
In addition to real estate investment, owning rental properties or utilizing platforms like Airbnb can generate passive income. The US housing market provides opportunities for property investment, and by renting out a portion of your property or investing specifically in properties to rent, you can create a regular cash flow. The sharing economy has opened doors for individuals to monetize their assets and build wealth without relying solely on the stock market.
Building wealth in the US without investing directly in the stock market is entirely feasible through alternative investment strategies. Whether you choose real estate investment, peer-to-peer lending, or any of the other methods mentioned, you must research, assess risks, and diversify your investments. Wealth building is a long-term journey that requires discipline, patience, and continuous learning. Explore these strategies to find the path that aligns with your financial goals and risk tolerance.
Assetmonk is an innovative alternative investment platform that specializes in offering investors access to highly profitable investment options. With a primary focus on curating a diverse portfolio of alternative investments, including commercial real estate structured debt, Assetmonk provides a unique opportunity for investors.
The alternative investment platform offers the Labrea Series A. It is a structured debt backed by real estate that pays a fixed income. It has set a minimum investment threshold of $12,000, enabling investors to participate in exclusive investment opportunities. By channeling funds through Assetmonk, investors have the potential to achieve an impressive Internal Rate of Return (IRR) of 18 percent. This noteworthy rate exemplifies the platform's dedication to delivering substantial returns to its investors.
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Q1. How can I grow wealth outside the stock market?
A. There are many ways to grow wealth outside the stock market. These include:
- P2P lending
- Private equity funds
- Real estate structured debt
Q2. How do I start building wealth?
A. You can start building wealth by investing in real estate. You can either invest actively vai rental properties. You can also invest passively via real estate crowdfunding, real estate structured debt, and P2P lending.
Q3. What is the alternative investment to gold?
A. The best alternative investment to gold is commercial real estate structured debt. Commercial real estate structured debts are fixed-income investments. These yield an assured 18 percent IRR. They can also get traded in the secondary market which ensures liquidity.
Q4. How do you diversify outside of stocks?
A. You can diversify outside of stocks by investing in REITs, real estate structured debt, and P2P lending.