5 Non-Traditional Retirement Investments

(4 minute read time)

Planning for retirement is sometimes challenging because you have to save for so long without seeing any tangible return. Some of the investments on this list represent the opportunity to purchase property that makes your retirement planning part of your life now. They also might be options to invest and get cash during retirement, even if you didn’t buy them a long time ago. One or more of these five non-traditional retirement investments could be a money-maker for you, if you’re the kind of person who is open to high risk and high reward.

Real Estate and Rental Properties for Retirement Income

Real estate is certainly a traditional method of investment, but many don’t consider it a secure or liquid enough approach for retirement. More often, those in retirement consider downsizing a home. But 50% of Airbnb hosts make $500 a month. If owners can acquire properties in desirable cities and countries, or even give up their own home a few weekends a month, real estate can represent not only an investment option but an income opportunity.

Wine Investing Returns and Risks

Wine investing requires learning a little something about wine, and some advance preparation to store the wine. If you don’t take those steps, this investment can quickly turn into a loss. However, you don’t have to be an expert in vineyards or growing conditions. The starting point is usually around $10,000 for a case, though depending on the vintage, that could also get you just one bottle. That investment can definitely pay off, like the single bottle of Cabernet Sauvignon that sold for $350,000 at auction.

Collecting Cars to Fund Retirement

The first thing most people will tell you about buying a car is that the value goes down the second you drive it off the lot. But classic or collectible cars are a different story altogether. Value is based on how rare the car is, along with the condition, make, model, and other factors. However, a classic car is not an investment to make without interest and passion. Restoring and maintaining the vehicle will be an expense over time, along with storing it. Plus, those who do make money on cars say that just investing in one isn’t enough.

Art Investing For Resale

Investing in art is nothing anyone can guarantee, but if you spot the right pieces, your money can grow exponentially. One piece by Jean Michel Basquiat sold for $17,680,936 in 2017 after being purchased for $136,367 in 1992.  While this market represents a huge opportunity to grow money quickly, investors must also remember it is a community of people to get to know. You can start with online resources but will eventually need to visit galleries and make connections. This will let you find pieces you like that also may accrue value.

Invest in Yourself in Retirement

The last strange retirement investment that just might pay off is in yourself. Retirement is a time we look forward to because it’s an opportunity to explore passions we set to the side for a career. For many, investing and training in those passions leads to a second professional existence. Whether it’s an online store that supplements your monthly outcome, a role in the gig economy, or just a better sense of self-fulfillment, the returns and reward of investing in yourself are always obvious. If you do want to start an online hobby shop or try entering a new role, just make sure to do your research before diving in.

These five investments are all more risky than a 401(k) or Roth IRA, or even a life insurance policy or other investment. But they also have appeals that make them good fits for certain types of people. When you’re trying to make this kind of strange investment, every extra dollar counts. Did you know you can sell all or a portion of a life insurance policy in a life settlement for more than the surrender value, even term insurance? If you have policies you no longer want or need, avoid the premiums and gain back more of your invested dollars through a life settlement. Then, fund your goals. If you want to see if a life settlement could be right for you, visit the Life Settlement Advisors calculator to see if you qualify.

Leo LaGrotte
Life Settlement Advisors
llagrotte@lsa-llc.com
1-888-849-088

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