New Ways to Invest in 2018

Traditionally, people think of the stock market when the subject of investing is discussed. While there may have been fewer opportunities in the past, that’s no longer the case. There are many ways to invest your money that don’t require risking your funds in a volatile market.

Peer-to-Peer Lending

The internet has created a wealth of opportunities, including the ability to act as a lender to those in need. Of course, there is a risk in that the borrower may not be able to repay the loan, which is why they elected this type of loan over going to a traditional lender. However, these services have safeguards in place to reduce this risk. Your money is pooled with funds from other investors to provide the loan. In return, the borrower pays a higher interest rate, which is divided among the investors, less the service fee.

Real Estate

This option is more commonly known, and investing in rental property is the most common practice in this area of investing. Typically, you’ll only have to supply funds for the down payment and closing costs. Once rented out, you’ll receive monthly income from your tenants. After making mortgage payments, paying insurance, and making any needed repairs, you’ll be able to pocket the remainder.

Precious Metals

Gold is the most common precious metal, but you can also invest in silver, platinum, and other heavily-valued metals. There are a number ways of investing in metals. You can buy them directly, such as buying gold or silver coins, or you can buy stock in mining companies. There are also fund accounts that deal exclusively in the trading of precious metals. Financial advisors recommend investing 10% of your investment portfolio in precious metals.

Start a Business

This is easier to do today than it was in years past. It’s possible to start an online business with just a few hundred dollars. Whether you opt to go this route, or have an idea to start a brick and mortar business, you must first research your area of interest. A poor risk can cost you more than your initial start-up investment.

Equity Crowdfunding

An alternative to starting your own business is to supply funds to help someone else start a business of their own. They will take on the headaches of running the business while you receive a portion of the profits in exchange for your investment. Again, researching the business’ potential is important, or you may lose your investment in a failed venture.

As these examples suggest, there are many investment opportunities available today. A wise investor may select a few options that they find appealing, rather than just investing in one prospect. Dividing up your resources enhances your opportunity for growth while minimizing your risk.