5 Alternative Ways to Invest Your Money
- Precious Metals.
Precious metals, gold in particular, are controversial assets. Some people have near-religious faith in them as a foolproof investment. Others see them as a nightmare . As usual, the truth is somewhere in the middle.
One of the real benefits of precious metals, whether gold or silver, is that it is one of the few assets that you can take possession of. You can buy gold or silver coins or bullion bars and keep them at home or some other safe place. And in the event of a complete economic or financial collapse, they can then be used as barter.
- An Investment With a Guaranteed Return: Pay Down Debt
This one sounds almost too simple. Maybe you’ve heard it before, but whatever you’ve heard, it’s absolutely true. If you pay off a credit card where you are paying a 10 percent interest, that will be the equivalent of earning a 10 percent rate of return on the same amount of money invested in another asset.
- Real Estate
There are several ways that you can invest in real estate:
- Buying property direct. You purchase a piece of property, either to produce rent income, capital appreciation upon eventual sale, or to rehabilitate and flip for a quick profit.
- Real estate limited partnerships. This is where you invest money in a real estate partnership that typically invests in commercial property, such as a shopping center, office complex or apartment building. You are a limited partner, so you can lose no more than the amount of money invested. There are typically tax advantages to this type of investment, primarily concerning depreciation.
- Real estate investment trusts. These are something like real estate mutual funds that invest in real estate or real estate mortgages. You buy shares in the REIT, then collect income through dividends and/or capital appreciation. There are also significant tax advantages to REITs. It can be a perfect investment if you don’t want to get your hands dirty and want to limit your risk.