Now, more than ever, is the time to get more creative and think outside of the standard stocks and bonds when it comes to investing.
One of the best ways to do that is by looking at what the 1% does to keep growing their wealth in both inflationary and stable environments. Here are five investing strategies the wealthy use that you should consider right now:
1. Build Your Real Estate Empire
With a steady dividend income plus long-term asset appreciation, it’s no wonder private equity real estate investment trusts have been a popular choice among wealthy investors.
CrowdStreet’s online platform offers accredited investors access to these growth-focused private commercial real estate projects so they can become co-landlords of sorts, with access to a real estate market they might not otherwise have.
Sign-up is free and there are a variety of deals to choose from, including multifamily, self-storage and data centers. The projects have an average internal rate of return of 18.5%, so it’s a great way to generate passive income and build long-term wealth.
2. Protect Your Portfolio With Precious Metals
Many successful and savvy investors look to gold and silver to add stability to their portfolios. Precious metals often outperform other investments in a volatile market, and their value tends to rise with inflation, making them an effective hedge during uncertain economic times.
If you’re interested in investing in precious metals, Goldco is a great place to begin. Opening a gold or silver IRA is easy and funds can be rolled over from existing retirement accounts. Or, if you prefer, you can buy gold and silver directly from Goldco’s extensive collection.
Worried you may need to sell your precious metals in the future? Goldco offers a buy back program and will purchase your assets back from you at the highest price.
3. Invest In Famous Art That Has Outperformed The S&P
Traditionally, it doesn’t get much more “1%” than investing in art. That’s partially because it’s long been one of the best ways to diversify a portfolio. With a 14.1% return, art handily outperformed the S&P from 1995 to 2021.
But with Masterworks, raking in potential big profits from investing in art isn’t just for the ultra-wealthy. Masterworks allows everyday investors to own shares of iconic works of art by the likes of Pablo Picasso, Banksy, Andy Warhol and more.
You can get paid when the painting sells or sell your shares on the secondary market, providing more liquidity than would typically be available when investing in art directly.
Sign up now to see what works of art are available to invest in, and start building your collection today.
4. Drink Your Fine Wine And Invest In It Too
Looking to smooth out the boom and bust cycles of stocks and bonds, the wealthy look to the best-kept secret in investing as a source of diversification: Wine. Recession-resistant and offering steady returns, wine is a strong option, though traditionally you’ve had to be part of an exclusive club and have a great deal of knowledge to make it work.
Vint changes all that by making it easy for the average investor to invest in wine and spirits. Vint experts blend market research with decades of wine investing experience to craft globally diverse wine collections.
Once a collection is launched, investors can buy shares and hold them until Vint experts determine the optimal time for the collection to be sold. After the collection is sold, investors get the proceeds.
5. Collect Rent without Being a Landlord
Rental real estate is popular as an additional, passive income for the long haul. Unlike investing in stocks, real estate is somewhat shielded from the constant ups and downs of the market and has offered a return of up to 6% over time, which makes it a smart way to diversify your portfolio.
Arrived is your gateway to the world of real estate investing that’s historically required lots of upfront capital. With a minimum investment of just $100, Arrived makes real estate investing truly accessible to everyone.
It’s simple to get started: Create an account, decide how much you want to invest and watch for property appreciation and quarterly rental income payments.
Investing in real estate is a great option for anyone looking to build long-term wealth that can stand up to risk and market volatility.
6. Find the Right Expert for Your Unique Situation
If the options above don’t appeal to you, the next best option will always be working with an experienced professional who can advise you on what to do to better diversify your portfolio. But who has time to sift through thousands of advisor profiles?
WiserAdvisor does all that work for you, matching you to the best financial advisor for your specific situation so you get an expert in the areas you need.
There’s no cost to use their service and no obligation to hire the advisor, so there’s not much to lose. Plus, WiserAdvisor screens advisors to make sure you’re only getting matched with the best experts.
Greg Garrison contributed to the reporting of this article.