5 Alternative Investments of the Ultra Wealthy That Are Worth Your Money

People who possess an ultra-high net worth don’t always invest in the traditional methods you might imagine, such as stocks, bonds and real estate. Sometimes, a savvy investor will follow their passions and invest in something they love.

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One such example is actor Ryan Reynolds, who bought ownership in Aviation Gin simply because he enjoyed the taste of the spirits. Other people may invest in Scotch whiskey barrels, aged in Scotland, as previously reported by GOBankingRates.

A CreditSuisse study published by Deloitte found that clients hold roughly 2% to 10% of their assets in collectibles, such as fine art, wine, automobiles, antiques, and luxury handbags. “[S]ome very wealthy clients also collect ‘items’ like fashionable hotels and football clubs,” said Michael Strobaek, Global Chief Investment Officer and Chairman of the Credit Suisse Investment Committee, in the report.

But alternative investments don’t have to cost a fortune. Affordable alternative investments can include toys, comics or even water. Let’s take a look at how to get started investing in some of these potentially lucrative fields, even if you don’t have a lot of money to get started.

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Movies

Do you love going to the movies? Did you ever wish you could be part of the filmmaking process or at least support filmmakers? You may be able to express your love for cinema by investing in movies. Production budgets can range from a few hundred thousand dollars to hundreds of millions, according to IndustrialScripts.com. Whether you invest in a local independent film or a Hollywood blockbuster will depend on how much capital you have to invest.

Just as when you’re purchasing comics or other collectibles, you’ll want to trust your heart, instincts, and industry knowledge as a fan. Look for a synergy of great talent and a unique and powerful story when you’re choosing your first film investment, according to IndustrialScripts.com.

You can also invest in movies by purchasing shares, or even fractional shares, of movie theater or production company stocks, such as AMC or Disney.

Comic Books

If you’re looking for an investment that isn’t subject to the whims of the stock market, has been loved by countless fans for decades and taps into the ethos of pop storytelling through the ages, consider comic books.

“When you had the financial collapse in 2008, 2009, that was an incredibly strong time for comic book investing,” said Stephen Fischler, founder of Metropolis Comics. “People thought stocks were stable. They thought real estate was stable. They thought bonds were stable. And that all went out the window.”

He continued, “People want to possess something that they can appreciate — and that will also appreciate in price.”

Fischler emphasized, “It’s not a given that somebody has to be a comic book fan,” in order to invest. However, he advised anyone interested in comic book investing to take time to get to know the market. The cultural impact of the comic book and its characters, along with the physical condition and rarity of the book, all play a role in its value.

LEGO Sets

Anyone with a child who loves playing with LEGO Bricks may marvel at the price of these little plastic interlocking cubes. It’s not out of the realm of possibility for even a teenage boy to have a room filled with a mortgage payment worth of licensed LEGO sets featuring Marvel, Star Wars or Harry Potter properties, to name a few.

You can turn that passion into profit by investing in the right LEGO sets. A study in the January 2022 journal Research in International Business and Finance, re-published by ScienceDirect, found that LEGO investments outperformed large stocks, bonds, gold, and alternative investments between 1987 and 2015.

LEGO sets represent a tangible, liquid asset that can quickly be sold for fast cash. Before you begin, you’ll want to do your research to buy the right sets, especially popular ones on the brink of retirement, and store them properly to retain their value, according to NerdCube.

Water

For those with a passion for sustainability, water can represent a good alternative investment, according to Peter Kline, CIO and founder of ALINE Wealth.

“When investment dollars are going to the water sector, it will improve access to clean water, revitalize infrastructure, and improve overall water conservation for future generations — each of which contribute towards a better future for our planet,” Kline told GOBankingRates in an exclusive email interview.

“The economic case for investing in water is compelling as there are no substitutes for it and the demand for it is inelastic. People will be forced to pay a premium for an increasingly scarce resource,” he added.

It’s easy to get started investing in water. As with aged whiskey, you don’t have to worry about storing or preserving your investment on your own. In fact, investing in water can be as easy as buying stocks or ETFs. “Investors looking to dive into the water sector can achieve exposure through individual stocks, water-focused index ETFs, and private equity. The water sector is a much larger universe than one may think … Knowing which option is right for you will depend on your liquidity needs and individual investor suitability.”

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Collectibles and Antiques

The concept of investing in collectibles can cover a wide swath of products, from Lenox porcelain and ceramic figurines to antique furniture. Whatever you choose, the key is to know the market well, understand how to spot fakes and learn how to get the best value when (or if) you decide to liquidate your collection.

If you’re passing on your collectibles to preserve generational wealth, you’ll want to be sure your heirs understand the value of what they are receiving, as the concept can be lost if it’s not discussed with children or grandchildren.

“Many clients I meet regard collectibles as a great and stable store of value/wealth for future generations,” Strobaek said in the Credit Suisse report. “Hardly any of them regard their collectibles as a pure investment — there is more to it than that. Some also want to create a positive impact, but more often regard collectibles as a diversification, a store of value and something they feel proud about. Collectibles symbolize their passion and interests.”

Bottom line: You don’t have to be wealthy to have passions and interests. And, if you know the steps to take and have a bit of expendable income, you can turn those interests into investments, regardless of your current net worth.

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This article originally appeared on GOBankingRates.com: 5 Alternative Investments of the Ultra Wealthy That Are Worth Your Money


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