Alternative investments: Some profitable ways to prepare for the future

The stock market has been providing an excellent rate of return for many investors over the last five years. However, as with any bull market, there is always room to look for different ways to invest, alternatives to the traditional approach. These can provide a continuation of your returns should the market head downwards again; something that it will inevitably have to do at some point. Some of the best alternative lending options are:

  • Peer to peer Lending

This is one of the fastest growing market areas. In essence you are lending your own money to other people who need it. In reality this is controlled via huge funds and your initial investment is spread across many different loans. Borrowers usually get a lower rate than going through a bank and you will receive a better rate of return; enough to warrant the risk of any non payers.

Peer to peer Lending

  • Precious Metal

Precious metals, such as gold or silver do not always rise in value but they are tangible; you can physically hold these items and trade them as and when you want to. The value of these metals tends to rise as the currency falls and vice versa; this means there is always an opportunity to buy or sell them.Alternative investments 2

  • Debt Repayment

This is the most important way of guaranteeing a return on your investment. Pay off your debts and you are stopping the interest payments. A loan with a 10% interest rate which has been cleared equates to earning ten percent on another investment.  Additionally you will gain financial freedom.

  • Real Estate

Real estate has always been a popular choice; it is another tangible asset which generally does well over an extended period of time. It is always in demand and significant returns on your investment can be made by purchasing ones which need fixing up and flipping them. If you cannot afford to buy a property yourself then you can join a partnership or a real estate investment trust.

  • Treasury Securities

Purchasing treasury securities is a good way if investing for the medium to long term. The interest rate on these tends to be a little lower than other investments but they are a reliable source of income. You are effectively funding the government and your funds are locked into lace for an agreed term; anywhere between one and thirty years.

  • Collectibles

It can sometimes be difficult to know which items are going to be end up as a collectible and rise in value in the future. This is an alternative investment area where you must know all about your product and, ideally, have a passion for the item you are collecting. Chosen correctly they can rise dramatically in value but this strategy can be a little hit and miss.

  • Wines

Fine wines have been an alternative investment strategy which has provided above average returns for over twenty years.  In fact, fine wine frequently out performs bonds and other treasury securities. However, you must have a good knowledge of wines and invest in the premier ones which will go up in value over time. Choosing them and storing them requires specialist knowledge, preferably a wine investment company to ensure you are choosing the right products.

Alternative investments

  • Silent Partner

Business which are well established but are struggling for a variety of genuine reasons can make a good investment option. Your funds are used to prop up the business and allow it to move forward. In return you will get a share of the business and a return of the profits.  If the business is ever sold you will be entitle to a share of the proceeds. As a silent partner you need to have no involvement in the day to day running, just collect the return on your investment!

  • Hedge Funds

Previously these have been the arena of the super rich. However, with the increase interest in alternative investments it is now feasible for anyone with twenty thousand or more to get in on the action. You can invest via a third party who will assist you with placing and managing your funds.

Are you prepared to face the future? Be smart when investing and ask for advice. This is the best way to see visible returns and avoid unnecessary risks.

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