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 several 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. Find the Right Expert for Your Unique Situation
Most wealthy people have money managers for a reason. Working with an experienced professional who can advise you on what to do to better diversify your portfolio is always a good idea. 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.
4. 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 13.8% 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.
5. 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 10.6% average annual returns over the last 30 years, 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.
Vinovest aims to change all that and make wine investing accessible to all types of investors. The Vinovest experts create globally diverse wine portfolios based on your investing preferences. You can step into the world of fine wine investing without the hassle of authenticating, storing or securing your wine.
And if you want to enjoy your wine, they’ll ship it to you. Plans are available with minimum balances as low as $1,000.
6. Get Paid For Your Empty Space
Sometimes the best investment is one that doesn’t require you to invest anything at all. Got an empty garage or driveway? A backyard shed collecting dust? An unused attic or basement? You could be making hundreds of dollars a month by simply letting someone store their stuff in your extra space.
Neighbor is a website where you can list just about any type of storage space for rent. With this site, you control the things you want to control: You review renters’ requests, so you can see what they want to store before you approve the deal. Then you get to schedule the move-in date that works for you.
Meanwhile, Neighbor handles the rest. No need to write up contracts or collect payments. Plus, you’ll be covered by up to $1 million in liability insurance.
Greg Garrison contributed to the reporting of this article.