Money independent assets to invest in

Whether you’re looking to make a little extra money on the side, invest for the future, or want to level up your finances in general, there are several assets you may want to consider investing in. Here, we’ll look at some of our favorites that can work as great stand-alone investments or complementary pieces to your current portfolio.

1. Stocks

Despite the recent struggles of most major stock indexes in recent years, stocks are still considered to be a solid place to look for good returns. But, stocks aren’t always dependable as more risk-averse investors shy away from stocks that have already suffered recent losses. In this article, we’ll be looking at some of the best dividend-paying stocks in specific industries and geographies and our picks for those that pay the best possible dividends. Many of our choices are also MLPs and REITs, two other classes of stocks that have been especially popular in recent years due to their steady, high yields and stable payouts.

2. Real Estate

Real estate is a great investment asset because it tends to be an area where you have quite a bit of control over the market’s direction. As the economy recovers, and more people are willing to invest in their homes again, there will be an increasing demand for property all over the country. By purchasing land in areas that are still reasonably priced, and by leveraging your money with a loan to buy a home, you can end up making quite a bit of money when you sell down the road. Most real estate investments are also tax-efficient, meaning that you can see a good return on your investment even if you paid in cash.

3. Crowdfunded Real Estate Platforms

Investing in real estate is good, but it’s often costly and only available to wealthy investors who can afford to do so. Luckily, some companies are starting to emerge that allow you to invest in real estate through a crowdfunded platform. These platforms enable non-accredited investors to buy properties, even if they don’t have the funds required for a full downpayment. By pooling money with a large group of other investors, you can invest in properties that are otherwise entirely inaccessible to you. Also, considering investing in crowdfunded real estate platforms, you can often buy rather large properties for a fraction of the price.

4. Real Estate Invest Trusts (REITs)

REITs are another legal investment vehicle you can use to make money from the real estate market. You can invest in the sector through a REIT by spreading your money across many properties and tenants versus dedicating all of your funds to one property. One advantage REITs have over crowdfunded real estate platforms is that REITs are traded on stock exchanges for quick, easy access. They also often pay steady dividends, which add more stability to your portfolio. But, with that said, investing in REITs has some downsides. For example, if you invest directly in properties rather than through a REIT, you’ll come out ahead on the tax front because you can write off any interest paid on loans against your other income.

5. Rare Art

If you’re looking to invest in a slightly less conventional way but still somewhat accessible to the general public, consider rare art as an option. Although investing in things like paintings and sculptures may seem like a strange choice, the occasional art market has existed for hundreds of years and continues to grow yearly. With the proper knowledge, you can even buy pieces with historical significance that have appreciated dramatically in value over time. If you’re passionate about art and history, you may end up with a report that no one else has.

6. Land

Investing in land can be a solid, reliable way to make money. By purchasing land in areas that will develop over time, you can sell your property for an immense profit with the right amount of planning. The trick is to buy sooner rather than later before the development begins. You should also consider investing in commercial building lots if you want to embark on this type of investment to make money from the vacant land until it’s needed for construction.

Conclusion

Investing in assets that not only pay you money today but also provide growth potential or some other benefit can be effective. For example, if you invest in a REIT, you will likely profit from the dividends alone. But, as the real estate market continues to recover over time and more properties are sold for higher prices each year, you will also be able to sell your REIT shares for a profit.

This entry was posted in Uncategorized. Bookmark the permalink.