Diversify with real estate
Real estate is a well-known hedge against inflation. As the price of raw materials and labor goes up, new properties are more expensive to build. And that drives up the price of existing real estate.
Well-chosen properties can provide more than just price appreciation. Investors also get to earn a steady stream of rental income.
Luckily, there are plenty of platforms out there that allow you to invest in real estate with ease.
First National Realty Partners makes it easy for accredited investors to potentially grow their returns through commercial real estate.
FNRP gives you access to necessity-based real estate — such as grocery stores or health care facilities. That means the income-producing properties, often leased by national brands like Walmart and Kroger, are likely to remain in demand.
Once a deal is closed, FNRP’s team of experts manages the property, so you can focus on finding more deals you love.
Pros
- Strong vetting process and offers unique investing opportunities
- Partners receive quarterly cash distributions
- FNRP uses a proprietary screening system to pool a large group of potential investments and then meticulously screen the deals.
Cons
- High minimum investment of $50,000
- Only open to accredited investors at this time
Make your portfolio crisis-resitant with gold
Investing in gold is often considered the go-to inflation-fighting move.
It can’t be printed out of thin air like fiat money, and its value is largely unaffected by economic events around the world.
And because of the precious metal’s safe-haven status, investors often rush toward it in times of crisis, making it an effective hedge.
These days, you don’t even have to go to a bullion shop to buy precious metals. There are plenty of online platforms that offer a wide selection of gold and silver bars and coins and fair pricing.
Additionally, you can combine the recession-resistant nature of gold with the tax benefits of an IRA by opening a Gold IRA with help from Rosland Capital.
Pros
- Setup and maintenance fees for a gold IRA are cheaper than many competitors
- A $2,000 minimum purchase requirement is lower than many dealers, some of which require as much as $50,000 to open a gold IRA
- Rosland Capital earned an A+ rating and great reviews from the BBB
Cons
- Cannot open account online or without speaking to a representative available only during business hours
- There's no mobile app
Invest with the ultra-rich in artwork
You might think that investing in fine art by the likes of Banksy and Andy Warhol is only an option for the ultra-rich.
But with an investing platform called Masterworks, you can invest in iconic artworks too, just like Jeff Bezos and Peggy Guggenheim.
On average, contemporary artworks appreciate in value by 14% per year, which is significantly higher than the average returns of 9.5% you’d see with the S&P 500.
And investing with Masterworks lets you bypass a lot of the drawbacks of art investing — you won’t need to scour garage sales looking for a lost work by a master, and you won’t have to scramble to find a buyer if you need to sell your shares fast.
Pros
- Masterworks handles the entire process of finding, purchasing and storing artwork
- Access art market data through Masterworks' “Price Database”
- Offers early liquidity through a secondary market
Cons
- Hedge-fund like fees (although their net annualized returns are after taking out their fees)
- Fine art does not have an income stream, so you should only invest thinking about capital appreciation
- Limited historical data to evaluate as less than 10 investments have been exited