However you manage your finances and whatever your financial goals are, you need to have a diverse portfolio to manage your assets and make the most of your money. Savings, instant cash and investments all form a good portfolio, giving you the ability to plan ahead for your future – whether that means retirement, buying a house or just a better lifestyle.
All investments come with some risk but there are some that are clearly significantly riskier than others. This is why having a diverse portfolio will help you make your money work harder for you. If you have strong, low risk investments happily ticking over, you might be more inclined to try your luck with riskier investments or just alternative investments.
Alternative investments usually have high minimum investments and often have low liquidity when compared to the more conventional assets you have such as shares. However, many alternative investments are also an interest hobby for their investors, particularly those who collect stamps or antiques. In this sense, alternative investments aren’t just about asset management, they are also part of your lifestyle.
With this in mind, here are a couple of alternative investments you might like to try.
Gold can be bought in many forms but the most likely investments you will make will be in coins or bullion. The value of gold is recognised around the world and, indeed, it is one of the oldest forms of currency.
As a collectors item, gold coins are wide and varied and some are even IRA eligible. If you are looking to invest in gold, be careful to check on the validity of what you are purchasing. Make sure you only buy gold from a trusted partner and avoid any opportunity that looks like a fraud.
If you have a keen eye and a love for antiques, this form of investment will fill your home with real treasures to love and keep. However, you must not think of this kind of investment as a quick deal. On the contrary, investing in antiques will be a long haul investment over many years.
The real advantage of antiques is the joy you get out of them everyday. Unlike a number on the stock exchange, a beautiful armoire or a magnificent painting will give you something every day – an emotional and cultural connection that a stock value can’t really compete with.
This is a very niche form of investment that relies on two things: having the space to store the wine and the willpower to resist the constant temptation to just drink it! You don’t have to store your wine at home though, in fact, it is well advised that you have it stored professionally for a monthly fee.
This kind of investment only worthwhile if you are going large because you will need to cover the costs of storage, investment and insurance with your profits.
Whatever alternative assets you choose to invest in, be smart in your decision marking and enjoy your project. Unlike numbers games, this is your chance to enjoy your money while it works.