5 Surprisingly Great Assets Retirees Don’t Think To Invest In
Written by
Chris Adam
Edited by
Jenna Klaverweiden
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You may be thinking beyond the traditional investment opportunities, such as stocks and bonds, when looking for options during retirement. While those can provide solid returns, there may be lots of other options to consider.
Some financial experts shared with GOBankingRates their recommendations for assets that may be worth a look.
Home Options
Kevin Estes, CFP, founder of Scaled Finance, recommended home upgrades. He said they may be worth the hassle and cost and provide a positive return on investment.
Estes also said adding an accessory dwelling unit could generate rental income and improve the property’s value.
Startup Investments
Another option that could be considered is startup investments.
“Investing in a small business or local startup could be a good investment,” Estes said. “While there’s certainly risk, a retiree may improve the odds by sharing their connections, experience and other resources.”
Luxury Watches
According to Andrew Lokenauth, a money expert from Fluent in Finance, luxury watches have been one of his favorite recommendations lately.
“I suggest looking beyond the obvious choices to smaller watchmakers,” Lokenauth said. “These pieces typically appreciate 5% to 10% annually, and they’re a blast to collect. One of my clients started with a $15,000 piece and has built an impressive collection worth over $100,000.”
Special Coins
Lokenauth called rare coins “hidden gems.”
“I’m talking about specific niches like early American copper coins or certain mint errors. The key is specializing — I’ve got clients who’ve seen 15% to 20% returns by focusing on particular series or years,” he said.
Diversified Stocks and Commodities
“A client’s time horizon, cash flow constraints and risk tolerance guide the appropriate mix of assets for their investment portfolio,” said Marguerita Cheng, CFP, CEO of Blue Ocean Global Wealth. “Sometimes clients may neglect to include emerging markets, international or small cap stocks in their portfolio because these asset classes are perceived to be too risky or volatile.”
In addition, Cheng said commodities can be valuable additions to an investment portfolio and serve as an inflation hedge.
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