This is Jeff Rose from goodfinancialcents.com.
As a financial planner I work with a lot of
clients and we invest in the stock market,
we invest in bonds, mutual funds, ETFs, all
that good stuff. Every so often I’ll get some
people that want to invest into stock market
alternatives, meaning that they are a little
bit fed up with the ups and downs of the market,
and who could blame them. So they are always
asking me, “Hey Jeff, what are some other
areas that we can invest into?” Today I just
want to share five stock market alternatives
that you can invest your money into. Stick
around for the fifth one because the fifth
one might be a bit of a surprise to you.
Number one, gold and silver coins. You’ve
heard it. Everybody wants to buy gold. Everybody
wants to buy silver. The price of gold has
escalated well over the last couple of years.
Now people, you have to realize that gold
is a risky investment, and it fluctuates just
like an individual stock. That being said,
it is a stock market alternative, so if you
have a fear of the stock market, then investing
in gold coins might be a viable source for
you.
Another stock market alternative can be antiques.
I am going to use my stepdad as a prime example.
He’s invested into antique toys. These are
the toys from the 30s, 40s and 50s. He invested
into various paintings and other different
types of art. Also, another thing could be
antique cars. If you have a passion for things
in the past, investing your money into such
things as antiques might be a good alternative
for you.
A third stock market alternative is one that
I dabbled in, didn’t have much success. Hopefully,
you’ll do better. It’s real estate. If you’ve
been to the blog I have an awesome blog that
you need to check out if you want to check
out real estate investing. A buddy of mine
named Eric Mormon who is 29, maybe 30 years
of age is making a killing off real estate.
He’s done everything from lease to buy to
foreclosures to wholesale. He’s done it all.
This post covers a lot of that.
Obviously, real estate is a very, very awesome
stock market alternative if you understand
it. It’s something you don’t just dive into.
You want to do your research. You want to
ask some people, ask some experts. Talk to
some realtors and understand it before you
start diving into it. Just like my buddy Eric.
He spent a lot of time and a lot of research
and it has proven to be very, very voluble
to him.
A fourth stock market alternative that I’m
partial to is peer-to-peer lending. If you’re
not familiar with peer-to-peer lending, it’s
relatively new, but has definitely gained
a lot of traction in the last couple of years.
There’s a few big players in the space, but
the top two that you’ll want to check out
are Lending Club and Prosper. I will tell
you that I do have a Lending Club account
and have done very well with it. I have not
tested Prosper out yet. I have heard a lot
of good things about it.
Real quick, what is peer-to-peer lending?
It is exactly like what it sounds. You are
lending money to a peer and then you’re getting
paid an interest rate. You’re acting like
a banker to a potential borrower. It makes
things very interesting.
The thing I like most about peer-to-peer lending,
especially through Lending Club is let’s say
you invested a thousand dollars in Lending
Club. Of those thousand dollars, only $25
would go to one individual borrower, so if
that borrower defaults you don’t lose a
whole lot of money. Think of it like buying
stock in a mutual fund. If one of those stocks
in that mutual fund goes belly up, you still
have 99+ stocks in that mutual fund still
making you money. Same thing with Lending
Club. That’s why I like it. It is diversification;
you’re not putting your loans into one basket.
I’ve done pretty well with it. Check out my
blog post. I was averaging between 9Β½, almost
10% return and as of today I’m still there,
so definitely worth checking out as a stock
market alternative.
As I mentioned at the beginning of this video,
the last stock market alternative might be
a bit of a surprise to you, but think about
it. The one think that you can invest in is
yourself. How do you do that? You can invest
in going back to school and getting an MBA,
getting a PHD, maybe getting a degree that
you never got, or getting another degree.
For me, what I’ve done is I invested into
designation whether that be, for me the CFP
designation, or let’s say you want to be a
CPA to be a Certified Public Accountant. Maybe
there are certain designations in your field
that could give you potential raises or open
new opportunities for you at your job.
Other ways you can invest in yourself is by
hiring a coach. Maybe you can do a personal
development coach. I’m currently doing a coach
for entrepreneurs, and I will tell you that
the investment has been worth it tenfold.
I’ve only been doing it for just over a year
now, but the processes that I go through,
the mindset that I’m in has completely rocked
my world and had I not invested that money
into myself I never would have realized the
untapped potential that lies within me. As
you can tell, I’m very partial to coaching
and I’m very partial to investing in yourself.
These are just a few of the stock market alternatives
that you have at your disposal. If you want
other tips like this, be sure to check me
out at the blog, goodfinancialcents.com, and
if you’re on Facebook be sure to give us a
thumbs up on the Good Financial Cents Fan
Page. See you soon.
The opinions voiced in this material are for
general information only and are not intended
to provide specific advice or recommendations
for any individual. To determine which investment(s)
may be appropriate for you, consult your financial
advisor prior to investing.