There comes a time in every person’s life when they realize that working hard isn’t necessarily synonymous to wealth. And, if something were to happen and they couldn’t keep their job anymore, their financial security could be threatened. They know it’s smart to invest for their future, but the world of stocks and bonds sounds so foreign and frightening, they just can’t pull the trigger on investing. This is where our top five unique investment ideas come in! 🙂
5 Unique Investment Ideas for First Time Investors
Here’s the good news about stock and bond investments: you don’t necessarily have to go there to win with investing.
As a first-time investor, you don’t need to enter the complicated world of Wall Street. In fact, picking out single stocks and bonds could turn out to be a big mistake (the stock market tends to punish lack of experience). For better results, start by investing in something that you love and understand and, in time, you can move on to other forms of investments.
Sometimes, collecting for fun and profit is the best way to boost your income and fully enjoy the journey. As many of you may already know, collectibles have a high value when they are properly managed. In fact, sometimes people sit on fortunes of valuable collectibles and they don’t even know it!
As seen in various TV shows, old furniture, cards, toys or pieces of fun machinery can make amazing collectibles with a high estimated value. While in some cases the difference between the expected price and the appraisal price is not significant, there have been cases when the owner of an old bracelet who tried to sell it for $20 discovered that the piece of jewelry was in fact worth 10 times that amount.
Collectibles are one of the top unique investment ideas because they have advantages associated with them:
- They offer a hedge against inflation. While it is difficult to find investments that gain value above the rate of inflation, collectibles are the rare type of investment that does.
- They will likely remain in high demand. People that love collecting rare objects and valuables will always exist, and there is a market for every type of collectibles. From baseball cards to rare jewellery and books, there will always be someone willing to pay good money for those.
- Collectibles show no sensitivity to interest rates. Most traditional investment opportunities are sensitive to interest rates, but this is not the case of collectibles.
#2. Peer-to-Peer Lending
There are plenty of online platforms where you can start your excess-cash lending and also make some profit. This type of investment allows you to loan money to people in small increments, similarly to how a bank does. The best part about these investments is that you could end up getting quite a decent rate of return, typically 6% or more.
There’s also another reward as a peer-to-peer lending investor – the human variable. When investing money through this method, you know that you are investing in people and their dreams and goals. Everybody that you lend money to on such platforms has a story and you can save a life without knowing it.
The second great thing in this type of investment is the fact that you’ll be investing small increments, sometimes even as small as $25, so you can start slow until you are ready to make significant investments.
For some, the whole concept behind this type of investment might seem strange, but even financial advisors claim that it is profitable due to the high rate of return. Peer-to-peer lending is often on the top of the unique investment ideas list, as the advisors at XIO Group explain. Thus, even if you lack the investment experience, you can still manage peer to peer lending. You only need to create an account on a dedicated site and you’re good to go!
Art is yet another of the unique investment ideas that you should consider if you’re not keen on those stocks and bonds. And, it is one of the few investments that can become much more valuable over time. What you buy this year for $2,000 could sell in approximately 20 years for many times more than that!
The trick is finding art objects that have high potential. Search the local art shop and simply invest in the works of a trending artist. In time, it will certainly appreciate and you will be thankful that you purchased it in the first place. Do not limit yourselves to paintings. Sculptures, graffiti art and even photographs have a high rate of return too.
If you love yourself a glass of good wine from time to time, you should know that if you stop drinking it and start collecting it, you could be in for a great investment. Even if you buy non-aged wine and age it yourself in a cellar or simply your basement, you could actually earn money on it down the road when it’s time to sell!
If you want to get started in this type of investment, buy wine from local vineyards and wine manufacturers. Age it for at least ten years and enjoy the potential profits later. The only difficulty that you will have is restraining from drinking it! 🙂
An increasing number of investors seem to become more interested in investing in land (from the list of unique investment ideas). Why? Because this can be an exponentially better investment than traditional ones.
You own it, you can wait for the market to explode and sell it at a significantly higher price, all this while you can make some money while you own it. Rent it to a farmer, to a company that needs an extra lot of land, grow your own crops on it… And then later, you can enjoy a higher price.
Unique Investment Ideas – Which Are You Considering?
These are just five unique investment ideas to consider if you’re looking to invest in your future.
In your future investments, do your best to create a diverse portfolio, as this will bring you more advantages than traditional portfolios can. A diverse portfolio is more resilient when faced with unfortunate market events and less volatile. Plus, unexpected investments are certainly more flexible than traditional assets.
Are you ready to invest in any of these unique investment ideas?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.