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Hi Taylor
- Things being what they are, I'm looking to invest some money outside
of the stock market. Got any hot tips for me? - Lee
Hi Lee - Alternative investments are always a strong bet, not
just when the market is going through tumultuous times. There are
so many ways to put your money to work outside of the traditional
markets, but I'll stick with three of my favorites for now. |
1. Timber.
While the logging industry has certainly changed over the last
couple generations to become more environmentally conscious, the
demand for wood remains high. With farmed forests and access to
so many unique types of lumber, you have inherent stability within
this investing field. In addition to the importance of the material,
you have a handful of ways to invest in the timber market. Buying
acres of timberland is relatively straightforward, with value
in the land itself as well as what the acreage produces. Many
savvy investors go with timber-focused REITs to remove one degree
of responsibility while still making money on the product. In
any case, you can safely bet on timber to maintain value and weather
financial downturns.
2. Real estate. Buildings and land will fluctuate in value
and consumer interest more than timber, but owning property means
you always have an asset that typically increases its worth in
the long run. If you have the time and means to buy a desirable
vacation rental, you can create a steady flow of income in addition
to the actual value of the property. You should at least consider
some form of real estate, as few investments can deliver such
long- and short-term rewards. Also, for the investor combating
fears of market volatility, a physical piece of land or building
can be an exceptionally comforting holding. As the old saying
goes "They aren't making any more land!"
3. Precious metals. Precious metals make for useful alternative
investments. Like real estate or timber, the intrinsic value of
a physical element provides stability and diversification for
standard portfolios. Buying gold bullion will give you a concrete
investment that's excellent at value retention, while investing
in precious metals ETFs or mining companies might allow you to
escape a little market volatility while still enjoying the booms
that come with economic progress. If you're looking for a non-stock
investment you can rely on for long-term sustainability and insurance,
precious metals should rank high on your list.
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If you want
to see more options, you can check out my article on GoFarWithKovar.com
about alternative investments for this year. There are plenty of options
and hopefully you'll find at least one of them exciting. Good luck!
© Taylor Kovar
April 1, 2020
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Legal Disclaimer:
Information presented is for educational purposes only and is not
an offer or solicitation for the sale or purchase of any specific
securities, investments, or investment strategies. Investments involve
risk and, unless otherwise stated, are not guaranteed. Be sure to
first consult with a qualified financial adviser and/or tax professional
before implementing any strategy discussed herein. To submit a question
to be answered in this column, please send it via email to Question@GoFarWithKovar.com,
or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.
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