Have you ever stopped to think about how many different types of investments exist today? Honestly, people are always looking for places to stash their money and earn a handsome return, outside of bank accounts that is. I’m going to give you a list of several different types of investments available to the average consumer, some of which they may never have considered before.
Dividend stocks! I’m starting here because these are the bread and butter of my portfolio. The idea is to build up enough shares in solidly performing dividend stocks and to live off the proceeds of the dividends, all the while letting the stock itself appreciate and grow. It sounds much easier than it actually is, but at the very least it could provide a solid income stream to help you into retirement.
Foreign currency is another investment. Many people think of arbitrage and speculation whenever foreign currency is discussed. In reality, your country’s currency probably fluctuates around quite a bit. Just like anything else you can and should diversify the currency you are holding. Most people make the mistake of holding all of the liquid assets in the same currency as the country they live in.
Real estate investments are becoming all the rage again. The housing market is on its way back up. Some people decide to sink their cash into an investment or rental property. Others with less disposable income might decide to invest in an REIT instead. Either way it allows you to pool some of your money into the real estate game.
Peer-to-peer lending is another investment that has seen huge growth in the past few years. Sites like Lending Club allow an investor to lend money to another person, in return that person pays you back interest over a set period of months. Studies have actually shown this type of lending to be less risky than business-to-consumer lending that you typically see with banks.
Bitcoins have become all the rage in the past year. The bitcoin market has risen and fallen numerous times in the past couple years, but one way or another it seems like it’s here to stay. This type of investment isn’t very regulated as of yet, but there are reputable exchanges that have been in business for awhile, so if this tickles your fancy go and check them out.