Alternative Investments to Build Wealth as an Investor in the US
Regardless of whether you are in the USA or not, the greatest goal of an entrepreneur is to build wealth and retire comfortably. However, creating a successful business takes time. Having a phenomenal idea does not matter. There is no guarantee of success because venturing into business is a step of faith that you will not fail. Statistics from US Census Bureau indicates that almost half of all new start-ups in the US fail within the first five years.
If you are sedate about building your wealth and financial stability, it is vital that you avoid risking everything on one endeavor. This implies that you should diversify your portfolio. If you are so busy investing time and effort into your main business, you may not have the chance to invest in other ventures. Fortunately, below are some simple and viable alternatives that can help you secure your financial future.
Stocks and Exchange Traded Funds (ETFs)
Stocks band Exchange Traded Funds may not “alternative” investments by the technical definition. However, they are two of the most reliable secondary investments one can make as an entrepreneur. Essentially, you will own a small portion of an existing company through stocks. On the other hand, you can own a collection of different stocks within a particular sector or group through ETFs. Depending on how an entrepreneur wants to invest, you can choose companies that may increase in value over time. In addition, you may select companies that pay out their profits to shareholders in the form of regular dividends.
Bonds
Bonds are another straightforward investment option for entrepreneurs. Financial experts at Mount Bonnell Advisors recommend bonds because they are a safer play than stocks or ETFs. However, bonds offer a lower return on investment. While dealing with bonds, you lend your money to an institution, such as a company or the United States government. In exchange, you will receive interest paid on that loan. Bonds tend to be a long time investment option with at least three months before you get returns.
Metals and Minerals
If you are willing to invest time and financial resources, you can invest in metals and minerals. Their prices fluctuate based on factors like supply, demand, and other market conditions. Metals and minerals mainly include gold, silver, bronze, nickel, soda ash, titanium, and other expensive mined substances. They are a fantastic way to hedge your bets against the stock market because they are not volatile. If you want to invest wisely, you need to look for an excellent resource where you can research your options.
Cryptocurrency
This is the most modern investment option that is up for grabs for investors. Cryptocurrency in on the rise and has better returns because its value is continuously escalating. This is the right investment option for people who believe that cryptocurrency is the future of financial transactions. A growing community is inclined to agree that this will be a significant means of settling transactions in the future. Bitcoin is the leading name when it comes to cryptocurrencies that are currently available. On the other hand, there are alternative coins like Ethereum and Litecoin that are worth an investor’s attention.
Real Estate
Investing in Real Estate offers a more tangible and familiar type of asset investment. An investor purchases homes in budding neighborhoods with anticipation of a hike in real estate prices. Anyway, one may purchase the property if you are getting a fantastic deal on the home. On the other hand, investing in a real estate that one can rent out to earn extra revenue is also an excellent idea. Either way, one can make a nice side income that may be spent on mortgage and house upkeep.
Private Lending
If you have ready capital, you could invest it by lending it to other investors who may be in need. Making a steady interest rate on the principal would be fair. This is called peer to peer lending and is becoming more popular, even in the USA. The major downside to such an investment option is that you might face the risk of non-payment. This makes it necessary to have a business lawyer. Mount Bonnell Advisors can help in getting you one!
Venture Capital
If you are entrepreneurial minded and you have significant capital to work with, put it to work. You can do this by investing in another startup. It is an excellent chance to grow and get a better return on investment from another company with high growth potential. Perhaps, it may prove as an opportunity to be able to swing interesting partnerships and deals to grow your business.
Ultimately, your investment goal should be to build a diversified portfolio. The best type of a diversified portfolio should include a personal business and several independent investments.
More from Mount Bonnell Advisors:
What You Should Know Before Incorporating In Texas
Top Venture Capital Firms in Austin, Texas
