Five(5) Ideas to Build Wealth Outside the Stock Market
YieldStreet, from Jumpstreet
Having
passed the 119th anniversary of the Great Depression and the10th anniversary of the start of the Great Recession, we are
now in the longest bull run in the American economy since WW II.
Historical data reveals it is only a matter of time before the market
pulls back.
With
the U.S. unemployment rate at lows near 4%, the federal government has
executed on a fiscal stimulus package which, according to Ben Bernanke,
former Chairman of the U.S. Federal Reserve, "is going to hit the
economy in a big way this year and next year, and in 2020, Wile E.
Coyote is going to go off the cliff".
Today,
many investors are unaware of new alternative investment options with
typically low correlation to the stock market that can be added to their
portfolio to protect against the fluctuations in the broader economy.
Rather than putting all of your hard earned money in the same basket, consider these five(5) strategies outside the stock market:
1. Rental properties and Vacation homes:
A drop in homeownership rates has led to a rental boom, so purchasing a second property can be a great way to boost your finances.
Rental
investments can generate returns, plus any rise in equity; however, it
can be difficult to be a passive landlord. If you don’t want to manage
tenants and handle maintenance yourself, you’ll need to hire a
trustworthy property manager.
If
you want to build equity, you also must purchase property in a market
that has strong interest in rentals and vacation homes. While many
online portals will give you a feel for the market, you will need to
build your own payback/investment model.
• Time commitment: High
• Money required: Medium ($20,000 to $100,000)
• How: Self-research
From Jumpstree YieldStreet Investments Target 8 – 15% Returns
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2. Commercial property:
The
approach is similar to that of rental properties, but in this case,
you’re buying into properties like a one- or two-star notel hotel or motel (think Days
Inn [WYN] or Holiday Inn [IHG]) or a strip mall.
The initial investment is significant, and you need to vet potential partners to ensure they’re reliable and have domain expertise.
But
if you’re willing to put in the initial time and capital, you can
potentially expect a 6% to 12% return, compared to around a 1% to 4%
return on a single-family home.
• Time commitment: Medium
• Money required: High ($250,000+)
• How: Self-research
3. Franchise play:
Invest
in a single franchise or a group of successful chains, such as Subway, Panera Bread or BaskinRobbins-Dunkin’ Donuts. The franchise industry is set to grow this year, and
that trend could very likely hold.
A franchise investment could earn you a 10% to 15% return on your investment.
The biggest drawback is that buying just one or two will not generate enough income to make it interesting.
You’ll need to purchase several for the investment to be worthwhile,
which usually means a larger check size and additional time spent
finding the right partner. To get started, you could attend a
franchising trade show to get the lay of the land.• Time commitment: Medium to high (if you run it yourself)
• Money required: High ($50,000 to $1 million)
• How: Self-research
4. Peer-to-peer lending, social lending, and crowdfunding:
These
platforms enable borrowers to connect with a wide range of potential
lenders (that’s you!) instead of having to rely on traditional banks for
financing. The borrowers are individual consumers or small businesses,
and the investments usually target an 8% to 12% return.
Even by conservative estimates, the industry is growing rapidly.
Most platforms focus on consumer lending and SMB lending, and you need
to be aware of credit cycles and changes in interest rates.• Time commitment: Short
• Money required: Low ($5,000+)
• How: Online platform
5. Alternative lending:
Investing
in specialty finance products such as real estate, commercial loans,
and legal settlements can yield 8%-20% returns, and it requires less
time and energy than buying and managing physical investments.
In
the past, these alternative investments were generally exclusive to
investors with ultra-high net worth and large investment banks.
Today,
they’re increasingly available to retail investors through platforms
like YieldStreet, an alternative investment marketplace that offers
investment opportunities in real estate, litigation finance, and
consumer lending.
• Time commitment: Short
• Money required: Low ($5,000+)
• How: Online platform
In Conclusion:
Diverse, lucrative investment options exist outside of the stock market - If you‘re willing to understand and go after them.
One good way to start is exploring online marketplaces like Yieldstreet
YieldStreet
gives accredited investors access to alternative investments that were
previously reserved for institutional investors, hedge funds, and ultra
high net worth individuals.
YieldStreet’s investment opportunities are all backed by collateral and
target 8-15% yields with shorter 1-3 year durations.
Anyone can create a free account with YieldStreet by clicking the link below.
YieldStreet Investments Target 8 – 15% Returns
Get Started
We are constantly adding new
and different investing opportunities.
Multi-Use Real Estate Portfolio II
Target return
9%
Payments
Monthly
Term
17 Months
SOLD OUT – $1.54M
Diversified Pre-Settlement Portfolio XIII
Target return
13%
Payments
Event-based
Term
36 Months
SOLD OUT – $1.97M
Select Litigation Financing I
Target return
16%
Payments
Event-based
Term
24 Months
SOLD OUT – $12M
Caveats:
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