Check your inbox or spam folder to confirm your subscription.
Go to main Voices page »
I don’t think there is an alternative that is as simple to understand and doesn’t require any skill to invest in. However, for those willing to work harder for potentially greater returns (or additional diversification), there are other options. This article by Nick Maggiuli describes a few alternatives and their relative pros and cons:
As for me, I’m going to stick with stocks for the time being.
I imagine many a person rues the day their parents threw out a baseball card collection with the debris of childhood past. Might have had an awesome rookie or two in there. Of course, nearly all old cards are of little value and that’s the rub with “collectibles.”
I know several people who have built wealth through real estate. They have made this a full, or at least part time job. I’m not talking about rapid flipping of properties. I’m talking about owning 10, 20 or more rental properties and generating positive cash flow form each. This can be monthly rents, or VRBO-type rentals in a popular location. Either way involves a lot of work to build and maintain a portfolio. Searching for properties, understanding financing options, collecting rents, and maintenance can take up all your time. If you are very handy and like fixing things, it can be a viable way to build wealth.
Owning a successful small business that is growing/compounding or being a silent partner in one can be much more profitable than owning common stocks; however, access to those opportunities is difficult for a number of reasons. I believe most investors would be best served owning stocks for the long run.