July: Consider Alternate Investing Strategies
In our Building Wealth in 2018 series, we’ve discussed how to budget more effectively; shared tips on how to begin saving; examined ways to trim back expenses; looked at ways to build long-term wealth; and discovered benefits to saving at an early age.
This month, we’re going to take a look at alternative investment strategies for building wealth over time. While we’re not recommending you go all-in on that too-good-to-be-true stock tip your brother-in-law shared, there are many other paths to building wealth beyond a salary, investing in a 401k or IRA, or a savings account. Before you consider any investment, we recommend consulting with a qualified financial advisor as well as do your homework.
For any of the alternative investment strategies presented here, there are a multitude of books, seminars, and educational resources to help you make a well-informed decision.
|Invest in the business of someone you know|
|Perhaps you have a close friend or family member with a promising startup business. Investing in their company as an equity partner or shareholder could potentially pay off in the future, and you’d be helping him/her develop a more solid financial footing. However, use caution on this strategy as you’ll want to do some research on the business. Consider enlisting the assistance of professionals with expertise in this type of venture.|
|Invest in a business (or multiple businesses within a pool) as an angel investor|
|This is an opportunity for you to support growing businesses in your community, while making a personal investment that could benefit you in the future. In New Hampshire, the Live Free and Start organization helps prospective investors connect with businesses who may be a good fit for them, and they host events for investors to learn more about the process.|
|CD accounts are similar to savings accounts in that they offer a secure place to deposit funds, however, the interest rates are higher than a traditional saving account. To learn more about CDs, including current rates, minimum terms, and deposit requirements, check out our CD rates.|
|Real estate investments for rental income|
|Most of us know people who have either succeeded or failed at investing in real estate, so it’s important to take the time to do your research. Consider meeting with successful real estate investors and ask them everything you need to know about the business. Beyond the standard purchase of a multi-family property, you may want to consider real estate that could generate weekly rental income. It’s also important to note that ownership in real estate for the purpose of receiving rental income is considered a business; therefore, you’ll want to consult with your tax adviser, financial planner, and bank to assist you through the process of obtaining a commercial mortgage if you’re not purchasing the property with cash.|
While there are many alternative investment strategies to consider, doing your research is important to ensuring you are making the right decision based upon your investment objectives.
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