Is an Alternative Income Investment Right for You?

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If you’re looking to invest your money in something that will give you the chance to earn a high rate of return without the risk of losing everything, then an alternative income investment might be right for you. While these aren’t traditional investments, they can provide you with steady and reliable income streams that grow as time goes on. Here are just some of the options available to you.

What is an alternative income investment?


Basically, you’re investing in assets that aren’t stocks or bonds but can still have a big impact on your portfolio. There are several types of alternative income investments out there—here are a few of them: real estate, businesses/stocks owned by other companies, commodities and currencies (like Bitcoin), and crowdfunding platforms. The key to making money with these types of investments is diversification.

Why are alternative income investments popular now?


People are investing in alternative income investments as a way to diversify their portfolios. Traditional stocks and bonds have long been used as investments, but they can be volatile and don’t always provide consistent returns. Investors are looking for new ways to add more stability to their investment portfolios, which is where alternative income comes in.

These investments can be seen as slightly higher risk than a traditional investment portfolio, but they also provide higher potential rewards—which has made them extremely popular lately.

How do alternative income investments compare to traditional investments?


First, it’s important to understand how alternative income investments differ from traditional ones. If you invest in a stock, you’re essentially buying a share of that company. If you buy real estate, you’re getting a percentage of ownership in that property and earning rent off of it. Both are risky but have proven returns.

What are the benefits of investing in alternative income investments?


If you are looking to grow your investment portfolio, one alternative income investment worth considering is real estate. Real estate can provide substantial returns and has historically shown a low correlation with other traditional asset classes like stocks and bonds. Although there are no guarantees in investing, if you do your research and find a property you love, investing in real estate could help you generate long-term returns and potentially give you something to pass down to future generations as well.

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Are there any drawbacks to investing in alternative income investments?


Yes, though these issues aren’t prevalent with every alternative income investment. If you invest in a P2P lending platform and they don’t receive enough interest on loans to pay back investors, you could lose your principal investment.

If something goes wrong at a mutual fund company and they go bankrupt, that means all of your investments are gone and you may have to file bankruptcy as well. Also, there can be a greater risk with some alternative income investments than others depending on which ones you choose to pursue.

Should you invest in the next big thing (cryptocurrency)?


Cryptocurrency (such as Bitcoin) has become a massive buzzword, but is it worth your time and money to invest in it or any of its emerging alternatives? Here’s what you need to know before making any decisions.

How much do you need to invest in these kinds of assets, and what are some companies to watch out for (Cryptocurrency)?


Many people don’t have much money in their savings account, but they do have a bit of extra cash they can put toward other investments. If you fall into that category, consider investing your money in alternative income sources like stocks, options, or cryptocurrency. There’s lots of information available online on how to invest your money safely and make good money doing it.

Where can you find out more about these kinds of opportunities, and how can you connect with other investors interested in these alternatives (meetups)?


Your local financial advisor, your CPA, or anyone who has helped you with investment plans in the past. Furthermore, there are online resources and social networking sites specifically dedicated to finding like-minded individuals interested in alternative investments.