Thinking about the future can be scary. Thinking about future finances can be even scarier. How do you know where and what to invest? (Just so you know, that’s why we’re here.) Of course, you probably already know about the traditional ways to invest in your future: stocks, IRAs, real estate. But there are other nontraditional investments that can be a little more fun!
My best advice is to make sure you nail down your “core” portfolio. What you need to live the life you want now and in the future. Then with your surplus wealth, you might want to something that you’re interested in to invest in. I have friends who collect wine, art, even shoes. Some invest in Broadway shows. By finding something that already holds your interest, you’ll have a basic understanding as well as a desire to learn more. For my friends who love wine, it was easier for them to transition into just sipping it and visiting vineyards, to find wine that was worth investing in. With art, it’s a similar transition. Find specialists who can guide you and make you aware of upcoming sales. Befriend gallery owners. Visit auctions. You may want to increase your wealth, but you can have fun along the way in case the investment doesn’t work out.
Of course, with all of these nontraditional investments, there must also be an investment in time and education. One must be willing to do research to find out about growing trends in the field and what buyers are interested in. Along with this investment in time, one must also have a readily available source of financing to pay for these investments. Sadly, Two-Buck Chuck or the latest Broadway opportunity probably won’t have a good return on investment. But it could be fund!
For many, investing in real estate or stocks is the safest way to proceed for your core portfolio, but for some, these investment options don’t excite them or they wish for more. I recommend having a diverse portfolio for your core portfolio, and you include nontraditional or alternative investments. But for enjoyment and possibly some good return. It doesn’t hurt to have some of your investments hanging right where you can see them…on your walls or in your closets or resting in your wine cellars. At the least, you can drink well!.
For more information about ways to find out about other types of investment, visit tswealth.com.