With the right knowledge, investing can be safe and low risk. These types of investments will not make you a millionaire overnight, but they can build your net worth faster than an ordinary savings account. These instruments are there for the ordinary person who wants to reach his financial goals but does not want to bother that much with them.
Some of you are mavericks who are willing to invest your money in something that has the potential to give you a big return. Investing for some of you is just like gambling on the casino tables at Las Vegas. It’s a great adrenalin rush where you weigh your risk against your chances of success. Still, do not put all your eggs in one basket. These investment ideas are not that popular because they are very uncertain. In one instant you can be a big winner and on the next turn, the goal has turned into a big lump of coal.
When going outside of the box and trying these unusual investment ideas, it is important that you do your due diligence. Primarily to vet that this is a real investment opportunity and that it is legal. So many people have been swindled by unscrupulous entities that are basically Ponzi schemes where you end up investing is something that has no value and the principal runs away with your money.
For the risk taker who does not want to stick to the tried and true methods of investing in stocks and best, here are some unusual investment ideas. Some of them are unheard of, some of them are very risky but if they do win, the payoff will be big.
Borrow Money and Invest It in Equities
What, go into debt? You must be crazy! Normally the idea is to invest your savings, but how about looking beyond your assets? If you are still young and have a good credit score, you can take more chances than a middle aged person who has kids going to college in a few years. The idea is to borrow money from the bank or other lending institutions, negotiate for a great interest rate, and invest that into high risk investment instruments such as equities. For every $1 that you own invest, you should borrow another $1 to invest. With proper management, the yield will be much higher than the interest rate. You do have to have nerves of steel though, especially when the stock market is on the downswing.
Buy Trading Cards and Toys
To the collector, trading cards and toys that are in mint condition and kept in their original boxes can be worth their weight in gold. Buying and selling these items have been known to surpass the returns on some stock indexes. This is true especially if an athlete suddenly becomes a record-breaker or a most valuable player. Parents will pay a lot of money for toys that have been sold out. If you are not familiar with toys and trading cards you have to do a lot of research because you don’t want to buy something that is worthless in the eyes of collectors.
Invest in Future Technology
After the dot com bubble burst at the beginning of the new millennium, people became understandingly wary of investing in technology companies. Technology is an unpredictable market. Some computer companies are exceeding expected returns while others have failed in their IPOs. While this form of investing in common, a riskier investment is acting as a venture capitalist for future technology. One of the most popular ones is the race for commercial space flight. Offering funding in exchange for shares in a space company can yield returns if the company can actually send people to space and if commercial space travel becomes a viable industry.
Buy an Animal and Rent It Out
Certain types of animals like purebred dogs and thoroughbred racing horses are very valuable. People have been considering them as investments for decades. If that is too rich for you, consider investing in the mundane: dairy cows. The principle is simple; you buy a cow and rent it to dairy farms who will extract milk from it. Worried about the logistics of this form on investment? You don’t need to even step foot on a farm because there are firms who will facilitate this transaction for you. It’s a win-win situation. The dairy farm will be able to divert its capital to other equipment while the rental fees that you will get will yield returns that are higher than some traditional investment instruments.
Have you ever invested in anything unusual before?