As you approach retirement, it’s important to think about all of the different ways you can save and invest for your future. While most people think about traditional options like 401(k)s and IRAs, there are actually many other, less common ways to save for retirement. In this blog post, we’ll explore some alternative investment options to consider for your retirement savings. So whether you’re just getting started or you’re looking for new ways to grow your money, read on for some compelling ideas!
- Is It Smart And Safe To Stray From Traditional Investments?
- Build Passive Income
- Non-Traditional Investments
- Cryptocurrency Investments
While traditional investment strategies are tried and true, they may not always be the best option for everyone. Only peruse these less common options if you’re willing to take on a higher degree of risk, or if you already have a majority of your investments in more reliable options and are looking to take on a higher risk / higher reward type of investment. With that in mind, let’s take a look at some of the smartest and safest ways to stray from traditional investments!
One way to build retirement savings is to create multiple streams of passive income. This can be done in a number of ways, including investing in rental properties, building websites, and creating digital content. While it takes some initial effort to get these businesses up and running, once they’re established they can provide a consistent stream of income that can help you grow your retirement savings. And best of all, you can often do this from the comfort of your own home!
Develop a Website or Online Store
If you have a knack for design or web development, you can build a website or online store to generate income. This can be a great way to supplement your retirement savings, as well as provide you with a creative outlet in your golden years. In a study, website owners reported that once their website was established it continued to generate income with little to no ongoing effort required for an average of 7 years. Not bad for a little side hustle!
Selling An Online Course or Presentation
Additionally, if you have knowledge or expertise in a particular subject matter, you can create an online course or presentation to sell to others. This is a great way to generate passive income, as you can create the course once and then continue to sell it for years to come.
Invest in an AirBNB or VRBO Property
If you’re looking for a more hands-on investment, you can purchase a property to rent out on Airbnb or a vacation rental website. This can be a great way to generate income, as well as provide you with a place to stay when you travel.
Invest in Vending machines
Another option for those looking for a more hands-on investment is to invest in vending machines. This can be a great way to generate income, as well as provide you with a tangible asset that can appreciate in value over time.
Create Digital Content
Another great way to generate passive income is to create digital content. This can be anything from videos on YouTube to courses on Udemy to articles on a blog. If you have knowledge or expertise in a particular subject, this can be a great way to generate income and help others learn. Recently thousands of content creators have found an audience on TikTok. Throwing aside the stereotypes, even the elderly have been getting involved, with accounts like @retirementhouse boasting nearly 4 million followers. These retirees have probably generated more income on TikTok since they’ve retired than during their entire working careers prior!
If you’re looking for a more passive investment, you can invest in Amazon FBA. This is a great way to generate income, as you can sell products on Amazon without having to create or ship them yourself.
Create Stock Photos
Another option for those with a creative flair is to create stock photos. This can be a great way to generate income, as you can sell your photos to stock photo agencies or directly to customers.
If You Can Go Viral Social Media Can Cover Your Entire Retirement
Lastly, if you’re willing to take on a bit more risk, you can try to go viral on social media. While this may not be the most reliable option, if you are able to generate a large following you can make a great income from sponsorships and advertisements.
Now that we’ve looked at some less common ways to generate income, let’s take a look at some less common investment options.
While art may not be the best option for those looking to generate a large income, it can still be a great investment option for those looking to add some diversity to their portfolio. Art can be a great way to invest in something tangible, and it can often appreciate in value over time. Additionally, art can be a great way to add some personality to your investment portfolio.
An art investment can be a great way to add some diversity to your retirement portfolio, but it should not be relied on for steady income. Like any other investment, art should be seen as an extra, not essential, part of your savings. That said, if you do have the financial flexibility to invest in art, it can be a great way to diversify your portfolio and potentially see a return on your investment down the line.
Another option for those with a passion for cars is to invest in classic cars. Cars can be a great way to add some diversity to your retirement portfolio. From a financial standpoint, classic cars are pretty stellar long-term investments. Not only do they hold their value very well, but they are fun to drive and maintain. If you’re interested in investing in classic cars, make sure to do your research and find a car that has the potential to appreciate in value over time.
Additionally, it’s important to remember that classic cars should be treated as collectible, not as regular vehicle. This means that you should only drive them sparingly in order to protect their value.
Similar to classic cars, antiques can be a great way to add some diversity to your retirement portfolio. Antiques are items that are typically at least 100 years old, and they often have a lot of sentimental value for the owner.
Just like classic cars, antiques hold their value very well and can often be sold for more than what they were purchased for. Additionally, antiques can be a great source of income when they’re auctioned off or sold through an online auction site like eBay.
Sneakers & Streetwear
Another option for those looking for a non-traditional investment is sneakers and streetwear. Sneakers and streetwear are popular items that often have a high resale value. Additionally, the demand for sneakers and streetwear continues to grow, making it a wise investment choice for the future.
In the last decade many people from wall street pros to your next door neighbor have become interested in cryptocurrency and blockchain investments. Many people view cryptocurrency as digital gold. It’s seen as a safe haven investment, similar to how people used to (and some still do) invest in gold. The incredible volatility of the market has made for some large gains and losses, but overall if you had invested in Bitcoin or Ethereum 5 years ago you would have seen your investment increase significantly. However, if you invested at the end of 2021, as of now in the summer of 2022, you will likely be down over 50% from your initial investment. So as with any investment there is always risk, but that doesn’t mean cryptocurrency can’t be part of a retirement portfolio.
How to Mitigate Risk if you Decide to Invest in Cryptocurrency
If you want to invest in cryptocurrency despite the inherent risks, there are a few things you can do to mitigate those risks.
If you’re interested in investing in cryptocurrency but are worried about the volatility of the market, you may want to consider investing in a cryptocurrency IRA. A cryptocurrency IRA is a retirement account that allows you to invest in cryptocurrency without having to pay taxes on your gains.
How is a crypto IRA different than just buying cryptocurrency?
When you buy cryptocurrency, you’re subject to capital gains taxes. However, with a crypto IRA, you’re not required to pay taxes on your gains until you withdraw the money from your account.
This can be a great way to invest in cryptocurrency without having to worry about the volatility of the market.
How is a crypto IRA different than a regular IRA?
A regular IRA is an account that you can use to invest in a variety of different assets, including stocks, bonds, and mutual funds.
A crypto IRA is similar to a regular IRA, but it allows you to invest in cryptocurrency instead of traditional investments.
Buying Stocks in Crypto Companies
Another way to invest in cryptocurrency is by buying stocks in companies that are involved in the cryptocurrency industry. This can be a great way to invest in cryptocurrency without having to worry about the volatility of the market. There are a few different ways you can buy stocks in crypto companies. The first way is through a traditional brokerage account. The second way is through a cryptocurrency exchange. Cryptocurrency exchanges are websites that allow you to buy and sell cryptocurrency. Some of the most popular cryptocurrency exchanges include Coinbase, Binance, and Kraken. If you’re interested in buying stocks in crypto companies, you’ll need to open an account with a broker that offers this service.
Investing in cryptocurrency can be a great way to diversify your retirement portfolio. However, it’s important to remember that there are risks involved. Before investing, make sure you understand the risks and how to mitigate them, and consult with a financial advisor if you still have questions.
Non-traditional investments can be a great way to add diversity to your retirement portfolio. While there is always risk associated with any investment, if you do your research and are strategic in your choices, you can minimize those risks and ensure a more secure future for yourself. In this article, we’ve outlined some of the most popular non-traditional investment options available today. So whether you’re interested in investing in art, classic cars, or cryptocurrency, there’s something out there for everyone. Just remember to always consult with a financial advisor before making any final decisions.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence