When it comes to investing, now is the time more than ever to get creative and think outside of the usual stocks and bonds.
One of the best ways to do this is to look at what the top 1 percent do to keep growing their wealth, both when inflation is high and when it is low. Here are five ways that the rich invest that you should think about right now:
1. Build Your Real Estate Empire
With a steady dividend income and long-term asset appreciation, it’s easy to see why wealthy investors like private equity real estate investment trusts.
CrowdStreet’s online platform gives accredited investors access to these growth-focused private commercial real estate projects so they can become co-landlords and have access to a real estate market they might not have otherwise.
Signing up is free, and there are many deals to choose from, such as apartments, self-storage units, and data centres. The average internal rate of return on the projects is 18.5%, so it’s a great way to make passive income and build wealth over time.
2. Put precious metals in your portfolio to protect it.
Many smart and successful investors look to gold and silver as a way to make their portfolios more stable. In a volatile market, precious metals often do better than other investments. Their value also tends to rise with inflation, which makes them a good way to protect your money.
Goldco is a great place to start if you want to invest in valuable metals. It’s easy to open a gold or silver IRA, and funds from other retirement accounts can be moved into it. Or, if you’d rather, you can buy gold and silver from Goldco’s large stock.
Worried that you might need to sell your valuable metals one day? Goldco has a buy-back programme and will pay you the highest price for your assets.
3. Invest in well-known art that has done better than the S&P 500.
Investing in art is often seen as one of the most “1%” things you can do. Part of the reason for this is that it has long been one of the best ways to spread out a portfolio. From 1995 to 2021, art did much better than the S&P with a return of 14.1%.
But with Masterworks, even people who aren’t very rich can potentially make a lot of money by investing in art. Masterworks lets anyone buy shares in famous pieces of art by artists like Pablo Picasso, Banksy, Andy Warhol, and others.
You can get paid when the painting sells or sell your shares on the secondary market. This gives you more options than if you bought art directly.
Sign up now to see what works of art you can invest in, and start putting together your collection right away.
4. Drink your good wine and buy more of it.
Rich people want to protect themselves from the ups and downs of stocks and bonds, so they look to the best-kept secret in investing: wine. Wine is a good choice because it doesn’t go down in value and gives steady returns, but in the past, you had to be part of an exclusive club and know a lot about it to make it work.
All of that changes with Vint, which makes it easy for the average investor to buy wine and spirits. Experts at Vint use market research and decades of experience investing in wine to put together collections of wines from all over the world.
Once a collection comes out, investors can buy shares and hold on to them until Vint’s experts decide when the best time is to sell the collection. When the collection is sold, the money goes to the investors who bought it.
5. Get rent without being a landlord
People often rent out their homes as a way to make extra money without doing much work. Unlike investing in stocks, real estate isn’t as affected by the constant ups and downs of the market. It has also given returns of up to 6% over time, so it’s a good way to spread out your investments.
Arrived is your entry point into the world of real estate investing, which used to require a lot of money up front. Arrived makes it possible for anyone to invest in real estate with a minimum of only $100.
It’s easy to get going: Set up an account, decide how much you want to invest, and keep an eye out for property value growth and rental income payments every three months.
Real estate investing is a great way to build long-term wealth that can withstand risk and market volatility.
6. Find the right expert for your specific case
If you don’t like any of the above options, the next best thing you can do is work with a professional who knows what to do to better diversify your portfolio. But who has time to look through tens of thousands of profiles?
WiserAdvisor takes care of all of that for you by matching you with the best financial advisor for your situation. This way, you can get help from someone who is an expert in the areas you need.
You don’t have to hire the advisor, and using their service is free, so you don’t have much to lose. Plus, WiserAdvisor screens advisors to make sure you’re only getting matched with the best experts.