One of the most important principles in investing is to never put all your money in one place. Diversifying your portfolio is the process of putting smaller amounts of money into a wider variety of accounts so that you’re not affected when one market does poorly. As traditional investment opportunities like stocks and real estate seem unstable at the moment, consider these four unusual places you should invest your money.
Law Firm Funding
Law firms need funding just like many other businesses. You can help fund a law firm in a process similar to how businesses offer shares in their company. However, one of the added benefits is that firms can take on work from clients who can’t afford representation. With your funding, law firms can pay their employees and reimburse you with money from the settlement.
Crowdfunded Real Estate
While real estate is proving to be unstable at the moment, it can still be a good choice if you can find ways to minimize some of the risk. One way to do that is through crowdfunding, which allows you to invest in more expensive properties that don’t have an unstable value, like multi-family apartment complexes.
Even if you don’t have millions of dollars to spend on an art collection, you can still invest in art. There are many programs out there that allow you to buy shares in traditional art. Then, you can either sell your shares or wait for the painting to sell before collecting your profits.
If you know anything about wine, then you know that some vintages can sell for thousands, even hundreds of thousands of dollars. If you’ve got the warehouse space, you can buy rare wines—or wines likely to increase in value—and keep them while they appreciate. Alternatively, you can use a wine-investing platform to buy wines without ever having to manage the bottles yourself.
These four unusual places you should invest your money are good choices if you’re concerned about the instability of traditional markets. Diversifying in the 21st century may look different, but it’s still the best way to protect your investments.