Growing your money doesn’t have to be about throwing your money into an account and waiting until you retire to access the fruits of your labors.
The reason why the rich get richer is that they diversify their portfolios. They take risks. They go beyond the conventional.
During the pandemic, the majority of new investors were under 45. It represents a major shift in the field of investing. If you’ve just started your investing career, or you’re thinking about what you want to do with your money, consider these top three alternative investing platforms as we move into 2022.
Invest in Alternative Assets with Care
For investors who want to move beyond conventional stocks and bonds, it’s important to proceed with care. There’s far less surety in alternative assets, particularly if you’re moving into the realms of speculation.
Creating a diversified portfolio is essential to protecting and saving for your retirement. The amount of risk you take depends on your personal risk tolerance, as well as how old you are. Older investors have much less room for error than younger investors who’ve yet to hit their peak earning years.
The experts recommend investing no more than 10-20% of your portfolio in riskier, alternative assets. The bulk of your portfolio should remain in relatively low-risk assets, such as ETFs, bonds, and major blue-chip stocks.
Here are the top platforms for accessing alternative investment assets to sufficiently diversify your portfolio in 2022.
Everyone knows that real estate is the investment that solidifies your financial future. If investing in residential real estate doesn’t appeal to you, consider making money out of agricultural land instead.
The way the platform works is investors can get a piece of a farm somewhere in the nation. Investors make money through the appreciation of the land and the annual rental fees paid by tenant farmers.
Agricultural investments were always difficult to make, but reviews on AcreTrader claim this is one of the only ways to do it remotely. Be aware that minimum investment fees can be as high as $50,000, so it’s not an option for budget investors.
Throughout 2020, the U.S. stock market showed itself to be remarkably resilient. Although the S&P 500 fell by 33% in March, it quickly recovered its losses and rounded off the year with a double-figure profit.
Cryptocurrency was the big winner of 2021. Although this crypto investment platform is synonymous with Bitcoin investing, it gives access to more than 30 different cryptocurrencies.
If you’re looking for a way to invest in the future of blockchain technology, holding some of your portfolio in crypto might be the option for you.
In terms of safety and security, the recent publicly listed company Coinbase has no peer in the world of cryptocurrency. You can check out this Coinbase review for more information on investing in crypto.
Making the right financial decisions when it comes to a diversified portfolio can be difficult. Reviews on PocketSmith recommend this app for forecasting your future finances.
Not only that, but you can also use scenario testing to help you to understand how certain decisions will impact your future finances. This can help you to test which alternative investments will influence your finances the most.
It’s good practice to go through this process before making major investment decisions.
Top Tips for Choosing Alternative Investments in 2022
The COVID-19 pandemic has completely upended the global economy. There have been big winners and big losers. As global vaccination programs help return life to normality, investors have a once-in-a-lifetime opportunity to take advantage of big opportunities.
However, it’s important to avoid being swept up by the barrage of the wider investing community. It’s easy to get excited about the investments everyone is talking about, but that doesn’t make them profitable.
Here are our top tips for diversifying your portfolio in 2022:
- Avoid Short-Termism – 2022 will yield plenty of opportunities, but you should think about where you want your investment to be five years from now. Avoid making investments to make some quick bucks.
- Don’t Invest Too Much – The bulk of your portfolio should continue to be made up of strong, reliable assets. Although forecasters are expecting continuous Bitcoin growth, it doesn’t mean you should throw all your spare change into it, for example.
- Invest in What You Understand – Speculative assets require an intimate understanding of what they are and how they make money. Focus less on profits and growth and more on educating yourself in what you want to invest in.
Investing in 2022 can be overwhelming for the average investor. There are so many options and opportunities. Refrain from investing based on emotion and focus more on building the foundations of a strong, solid portfolio that helps you to meet your long-term goals.