Many people are looking for ways to make a solid investment without investing in the stock market. Whether you are wary of the fees or don’t like the risk factors, there are many options where you can make money without buying stocks.
When you invest in alternative options, you diversify your portfolio and don’t have to rely on one source to make or break the bank. This is the best way to plan for the future without gambling on the outcome.
Keep reading to find out what investments deliver actual results with minimum risks.
Top 5 Best Investments That Don’t Involve Stocks
#1 Real Estate Investment Trusts (REITs)
You don’t need a ton of money to invest in real estate. Real Estate Investments Trusts are the perfect way to invest in a wide range of different types of properties without actually buying any of them by yourself.
When you join a REIT, you’ll be getting a share of the rental proceeds from various properties. This is a wise investment decision for anybody who wants to add real estate to their portfolio!
#2 Invest in Certificates of Deposit
If you saved up a nice chunk of change and you won’t be needing it any time soon, then certificates of deposit are a sure thing for earning some capital on your investment.
The Federal Deposit Insurance Corporation federally protects them. As long as you don’t withdraw any funds before the maturity date, you’ll end up with more money than initially invested.
#3 Buy Vacation Properties
One thing for sure, everybody needs to take a vacation once in a while. If you invest in a vacation home located in a prime destination, you can recoup your costs reasonably quickly and make more money off the rentals.
Just make sure you block off the dates you want to use your vacation property and then rent out all the other weeks. If you don’t have time to manage the property, plenty of companies will handle it for you for a nominal fee.
#4 Venture Capital Through Crowdfunding
You never know when the next big thing will happen, so investing in startups is one way to keep your eye on the prize. Even if you don’t have much experience investing, platforms like Indiegogo can help you get started.
#5 Try Peer-to-Peer Lending
If you want to help people by loaning them money and then receiving interest as it’s paid back, check out Lending Club. There is some risk that some people might default on the loan, and you not only lose out on the interest, but you also lose your initial investment.
However, if you invest strategically and don’t loan significant amounts at once, you can easily see a profit even if a few of those small loans don’t pan out. When you help other people out, you’ll not only get your investment back with interest; you’ll also gain peace of mind.
Riskier Options
Some alternative investment options are a bit riskier, but cryptocurrencies can be a lucrative choice if you don’t mind the volatile market. You’ve probably heard of Bitcoin by now, and the people who got in at the bottom are now millionaires.
Luckily more cryptocurrencies are regularly launching, and if you do your research, you might find the next big thing! Check out Robinhood to see which ones are affordable options and then start investing with small amounts.
You don’t need to invest in stocks to make a profit; make sure you choose an option that makes you wealthier and happy!
