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Alternative investment ideas?

936horn

By 936horn
in Business and Markets

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936horn

936horn 910

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(disclaimer, not a humblebrag, or any brag really...there are many people here far wealthier than I, I just want some advice)

In the last two or so years, my income has increased significantly, with a fairly clear (as clear as it could be anyway) path to further significant increases in the next 2 years, 5 years, 10 years, etc. I max my 401k, know about backdoor roth-ing, but as of now all the excess I have just gets dumped into my taxable brokerage account.

I've got cash set aside for 1 - 2 investment properties, but timing does not feel right for two reasons: 1. I am currently temporarily living outside of Texas, and long term will be in Texas....don't want to be a landlord from a different state, and 2. housing market is absolutely bonkers now and I don't want to buy an investment property at what feels like "the top".

Outside of real estate, what sort of alternative investments do you surly 1%ers dabble in? I'm not super interested in things like crypto....Am I stuck just doing my brokerage account and buying property when possible? I am hoping to diversify, but don't really know where to start. If it matters I am in my early 30s, so my risk tolerance is reasonably high...

Thanks in advance

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SDG

SDG 3319

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4 hours ago, TKthunder2 said:

The only thing you didn’t really list is precious metals (gold, silver, etc) or insurance options (which I know very little about).  Metals is probably the easiest to comprehend and get started.

I’d also put a portion in ammo.  If things get bad it’s actually useful.

 

(that ship may have sailed). 

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Acropora

Acropora 856

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One option for slightly more hands off real estate are syndications/funds.  Allows you to buy geographically diverse properties to benefit from arbitrage and avoid any one market getting overpriced.  Also allows you to get into multifamily, storage and commercial without crazy high minimums. 

I use mlg capital, mainly because they've been around long enough to weather bad cycles.  Everyone makes money in a bull real estate economy.  There are others but definitely sure your due diligence.  You do get some of the tax benefits that real estate provides, including depreciation and the ability to 1031 exchange at sale.  

I can understand the aversion to crypto, though I think given the gains and the future, having a 1-5% allocation is a good hedge.  While volatile, I feel a lot better in that space compared to an equities market that defies all reasonable metrics.  If you do, read and consider a small investment in the "large caps".  Btc/eth.

Hard money loans are another way to make money.  It usually requires a decent amount of capital to get access and there is variable risk/lock up of your money but with construction booming, something to consider.

As always, do your own diligence, read, etc. This isn't financial advice....

 

 

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Coelenterate Fuccboi

Coelenterate Fuccboi 13087

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21 hours ago, 936horn said:

If it matters I am in my early 30s, so my risk tolerance is reasonably high...

A couple things:

1. If you’re married, go ahead and factor in at least a 50% loss. (Then see #2)

2. If you’re not married, I suggest the high risk sugar baby discussion thread. You’re investing in someone’s future!

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troph

troph 24781

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I strongly prefer investing in private businesses but that kind of alt investments takes time, energy,  commitment, and you have to be willing to take significant risks.  The learning curve can be high too. That requires discipline to say no once your over allocated and it requires you do a lot of them so you can weather the losses. But you can see 20x / 30x / even higher over a ten year period.  What I like about it most is even if I do well enough to retire early I can still stay engaged in a kind of work, and that makes me very happy. If you want alt investments with fund type vehicles there are plenty of resources out there to do that. 

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