Alternative Investment Options for a Balanced Financial Future

Traditional investments like stocks and bonds are popular, but relying solely on them can leave your finances vulnerable to market fluctuations. That’s where alternative investments come in—offering a range of opportunities to grow and protect your wealth. Below, we discuss the various alternative investments, their benefits, potential risks, and how they can fit into your financial strategy to create a well-rounded portfolio.

Popular Types of Alternative Investments

Alternative investments refer to financial assets not classified as traditional investments like stocks, bonds, or cash. These investments typically operate in less regulated markets, offering opportunities that differ in structure, valuation methods, and return potential.

Unlike traditional investments, which are commonly traded on public exchanges and are subject to market trends, alternative investments often involve private markets or unique valuation mechanisms. The following are the popular types of alternative investments:

Commodities

Commodities are tangible assets such as gold, silver, oil, natural gas, and agricultural products like wheat or coffee. You trade these in specialized markets, and the global supply and demand dynamics influence their prices. Commodities can be invested directly—by purchasing the physical asset—or indirectly through futures contracts, exchange-traded funds (ETFs), or mutual funds tied to commodity performance.

For instance, you can invest in a gold ETF for exposure without requiring physical storage or buy a 1 kilo gold bar for direct ownership, which provides tangible security and eliminates reliance on third parties. Their value reflects broader economic conditions, making them a dynamic option in alternative investing.

Real Estate

Real estate investments involve purchasing physical property or investing in real estate-focused financial instruments. This category includes buying residential or commercial properties, flipping houses, and participating in real estate crowdfunding platforms.

Investors may also choose Real Estate Investment Trusts (REITs), which allow them to invest in large-scale property portfolios without directly owning or managing properties. Real estate investments often generate income through rent or property appreciation, making them a widely recognized alternative asset.

Private Equity

You carry out this type of investment through private equity funds or direct investments in startups and small businesses. Private equity funds pool capital from multiple investors to acquire stakes in companies to drive growth or restructure them for profitability. This investment often involves long-term commitments and requires a deeper understanding of the businesses receiving the funds.

When considering private equity as an investment, it’s essential to understand the professional landscape that can help in evaluating and managing these investments, especially when seeking top private equity lawyers who specialize in navigating private markets and driving growth or restructuring businesses for profitability.

Cryptocurrencies and Blockchain Technology

Cryptocurrencies, such as Bitcoin and Ethereum, are digital assets that operate on decentralized blockchain technology. They are an alternative to traditional currencies and offer a secure and transparent way to transfer value.

Blockchain technology has applications beyond cryptocurrencies, enabling innovations like smart contracts and decentralized finance (DeFi). Investors can acquire cryptocurrencies directly through exchanges or invest in blockchain-based companies and technologies, making this a highly innovative segment of alternative investments.

Collectibles and Tangible Assets

Collectibles refer to physical items with intrinsic or historical value, such as fine art, antiques, rare wines, vintage cars, stamps, and coins. These assets can appreciate over time due to rarity or demand. Investing in collectibles requires specialized knowledge to assess authenticity and market value accurately.

These tangible assets appeal to investors who value having physical, real-world items as part of their portfolio while also considering their potential to increase in value over time.

Peer-to-Peer Lending

Peer-to-peer (P2P) lending platforms connect individual borrowers with investors willing to provide loans. These loans are typically unsecured, and investors earn returns through interest paid by borrowers. P2P lending allows individuals to diversify their portfolios by spreading investments across multiple loans to reduce risk. Platforms often provide detailed borrower profiles and risk assessments, giving investors the tools to make informed decisions.

The Benefits of Alternative Investments

Diversification to Reduce Overall Portfolio Risk

One of the most compelling reasons to consider alternative investments is their ability to diversify your portfolio. Traditional investments like stocks and bonds are often closely tied to market performance, meaning they can rise or fall together during periods of volatility.

Alternative investments, on the other hand, typically operate independently of these market trends. This independence helps spread risk across different asset classes, reducing the likelihood of significant losses during market downturns.

Potential for Higher Returns in Niche Markets

Alternative investments often provide opportunities to tap into markets with high growth potential you may overlook in traditional investing. For example, private equity, real estate developments, or emerging technologies can offer returns well above stocks or bonds.

These niche markets reward investors willing to take calculated risks and hold their investments longer. While higher returns are never guaranteed, the potential to capitalize on early-stage growth or undervalued assets can make alternative investments a lucrative addition to a financial strategy.

Hedge Against Inflation and Economic Downturns

Some alternative investments, such as real estate or commodities like gold, act as hedges against inflation. When the purchasing power of money declines, the value of these tangible assets often rises, helping to preserve wealth. Further, some alternative investments perform well during economic downturns because they’re less correlated with stock market movements.

For instance, commodities may increase in value when traditional investments falter, offering a financial cushion during turbulent times. Including these assets in your portfolio can protect your financial stability in the face of economic uncertainty.

Access to Unique Investment Opportunities

Alternative investments provide access to opportunities unavailable in traditional markets, such as investing in startups through private equity, owning a piece of a real estate development, or purchasing rare collectibles.

Additionally, some alternative investments are exclusive, offering entry to high-net-worth individuals or those willing to take the time to research and understand them. These unique opportunities can create a tailored investment strategy that reflects your financial aspirations while providing potential for substantial growth.

How to Get Started with Alternative Investments

The first step is to assess your current portfolio and determine how much you can allocate to alternatives without overexposing yourself to unnecessary risks. Invest the money you can afford to leave untouched for an extended time because alternative investments often require a longer holding period or carry higher risk.

Research is a key part of the process. As such, learn about specific dynamics, risks, and opportunities associated with your chosen alternative investments. It’s also helpful to consult resources like investment platforms, professional advisors, or market reports to gain insights.

Diversification within your alternative investments is another important factor. For instance, if you’re investing in real estate, you could explore a mix of direct property ownership, REITs, or crowdfunding platforms.

Many platforms and funds allow for lower minimum investments, making it easier to explore alternatives without committing significant capital upfront. As you gain experience and confidence, you can gradually increase your investment in these areas.

Conclusion

Alternative investments offer a powerful way to build a more balanced and resilient financial portfolio. For instance, they provide opportunities to diversify beyond traditional stocks and bonds, reducing vulnerability to market fluctuations.

In addition, exploring these options allows investors to access unique markets and assets, broadening their financial strategy while aligning investments with personal goals. A thoughtful approach ensures that these investments complement traditional assets.

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More Recommended Ebike/Scooters

Check out these other ebikes and scooters I've reviewed:

Urban Arrow Ebike – Last year, I made one of the largest purchases I’ve ever made – I bought a $9,000 electric cargo bike from Urban Arrow. In my Urban Arrow review, I will discuss what it is and why I decided to buy this bike, as well as discuss how impactful a bike like this can be on your journey to financial independence.
Troxus Explorer Step-Thru Ebike – The Troxus Explorer Step-Thru is a fat-tire ebike that I’ve had the pleasure of riding for a while now. It has amazing power, great looks, and awesome range. If you’re looking for a great fat-tire ebike that offers a lot for the price, the Troxus Explorer Step-Thru is definitely one for you to consider. Check out my Troxus Explorer Step-Thru Review.
Hovsco HovBeta Ebike – The HovBeta is a folding ebike with great specs and a lot of interesting features, and importantly, it’s sold at a good price point. I’ve had a blast commuting with it and using it to do deliveries with DoorDash, Uber Eats, and Grubhub. Check out my Hovsco HovBeta Ebike Review.
Vanpowers Manidae Ebike – The Vanpowers Manidae is a fat tire ebike that I’ve been riding as my primary winter commuting bike and have also been using it to do food delivery with apps like DoorDash, Uber Eats, and Grubhub. After clocking in a decent number of miles with this ebike, I wanted to write a post sharing what my experience with the Vanpowers Manidae ebike has been like. Check out my Vanpowers Manidae Review.
Sohamo S3 Step-Thru Folding EBike Review – A Great Value Folding Ebike – The Sohamo S3 Step-Thru Folding Ebike is an entry-level folding ebike that offers a lot of value for the price point. I’ve been riding the Sohamo S3 for a while now, putting the bike through its paces, and I have to say, this bike has exceeded all of my expectations. Check out my Sohamo Review.
KBO Flip Ebike – The KBO Flip is an excellent bike. I’ve had a great time riding it and think it’s a versatile bike that can be used for a lot of purposes and can fit a variety of lifestyles. It’s worked out great for me as a general commuter bike and as a food delivery bike. Check out my KBO Flip Review.
Hiboy P7 Commuter Ebike – The Hiboy P7 is an excellent electric commuter bike that’s offered at an affordable price point. The range and speed of this bike are both very good, so you won’t have any trouble getting anywhere you need to go with it. As a food delivery vehicle, this is also good – with how much range it offers, you’ll be able to work all day on a single charge. Check out my Hiboy P7 Commuter Electric Bike Review.
Himiway Escape Ebike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
Espin Sport Ebike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
Varla Falcon Scooter – The Varla Falcon is an excellent scooter that offers a good amount of power at a lower price point compared to more powerful scooters. It’s not exactly an entry-level scooter, nor is it a high-powered scooter. I think it fits somewhere in-between those two categories – an intermediate scooter if I had to give it a category. Check out my Varla Falcon Review.
Hiboy S2 Scooter – The Hiboy S2 is an excellent entry-level commuter scooter that's perfect for someone looking to save some money in transportation costs and improve their commute. Check out my Hiboy S2 Review.
Hiboy S2R Scooter – The Hiboy S2R is one of the more interesting electric scooters I’ve been able to test out. It’s not a high-powered scooter, but for an everyday transport option, it’s very useful, especially given some of the unique features that it has. Indeed, for the price, the Hiboy S2R might be the best value scooter I’ve used. Check out my Hiboy S2R Review.
Fucare H3 Scooter – The Fucare H3 is a fun scooter and I’ve enjoyed testing it out. For a daily commuter or quick trips or errands, the Fucare H3 is probably the scooter I’ll use. It’s portable and easy to maneuver, so it’s just easier to take on the road when I need it. Check out my Fucare H3 Scooter Review.

More Recommended Investing App Bonuses

For additional investing app bonuses, be sure to check out the ones below:

M1 Finance ($100) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
SoFi Invest ($25) – SoFi Invest is an easy brokerage account bonus that you can earn with just a few minutes of work. Use my SoFi Invest referral link, fund your SoFi Invest brokerage account with just $10 and you’ll get $25 of free stock. I also have a step-by-step guide for the SoFi Invest referral bonus.
Webull (20 free stock shares) – Webull's current promotion gives you 20 free shares valued between $3-$3,000 each if you open an account using my referral link. Here’s a guide I wrote about how to earn your free shares using Webull.
Moomoo (15 free stocks) – Moomoo is a free investing app currently offering 2 different referral bonuses if you open an account using a referral link. Read my Moomoo referral bonus guide for more information.
Robinhood (1 free stock) – Robinhood gives you a free stock valued between $2.50-$225 if you open an account using my referral link.
Public (1 free stock) - Public gives you a free stock valued between $3-$70 if you open an account using my referral link.

More Recommended Bank Account Bonuses

If you’re looking for more easy bank bonuses, check out the below options. These bonuses are all easy to earn and have no fees or minimum balance requirements to worry about.

Upgrade ($200) – Upgrade is a free checking account that’s currently offering a $200 referral bonus if you open an account and complete a direct deposit. These bonus terms are easy to meet, so it’s well worth doing this bonus as soon as you can. Here’s a post I wrote with more details: Upgrade $200 Referral Bonus – Step By Step Directions.
Ally Bank ($100) – Of all the banks out there, Ally is, without a doubt, my favorite. At the moment, Ally is offering $100 to customers who open an eligible Ally account and meet the requirements. Here are the step-by-step directions to earn your Ally Bank referral bonus.
Fairwinds Credit Union ($175) – Fairwinds Credit Union is offering a referral bonus for users that sign up using a referral link. Fairwinds has no fees or minimum balance, so this is a particularly easy bonus to earn. Since this is a smaller credit union, my gut instinct tells me this offer won’t be around long, so if you’re in a position to meet the bonus requirements, grab this bonus before it’s gone. Here is my step-by-step guide on how to earn your Fairwinds Credit Union bonus.
Chime ($100) - Chime is a free bank account that offers a referral bonus if you use a referral link and complete a direct deposit of $200 or more. In practice, any ACH transfer into this account triggers the bonus. This bonus is easy to earn and posts instantly, so you’ll know if you met the requirements as soon as you move money into the account. I wrote a step-by-step guide on how to earn your Chime referral bonus that I recommend you check out.
US Bank Business ($900) – This is a fairly easy bank bonus to earn, since there are no direct deposit requirements. In addition, you can open the Silver Business Checking account, which comes with no monthly fees. Check out how to earn this big bonus here.
GO2Bank ($50) - GO2Bank is an easy bank bonus that I recommend people take advantage of if they have an easy way of meeting the direct deposit requirement. I like that it’s easy to open the account and that the bonus pays out quickly. Check out my step-by-step guide on how to earn your GO2Bank $50 referral bonus.
Current ($50) – Current is a free fintech bank that’s offering new users a $50 referral bonus after signing up for an account using a referral link. Current is an easy bonus to earn and also gives you access to three savings accounts that pay you 4% interest on up to $2,000. That means you can put away up to $6,000 earning 4% interest. That’s very good and makes Current an account I recommend to everyone. Check out my step-by-step guide on how to earn your Current Bank bonus.
Novo Bank ($40) - Novo bank is a free business checking account that’s currently offering a $40 bonus if you open a Novo business checking account using a referral link. In addition to being a good bank bonus, Novo is also a good business checking account. It has no monthly fees or minimum balance requirements and operates a good app and website. Indeed, it’s the business checking account I currently use for this blog. Check out my post on how to easily open a Novo account.
Varo ($25) – Varo is a free fintech banking app similar to Chime or Current. It’s currently offering a $25 bonus to new users that open a new Varo account with a referral link. The bonus for this bank is very easy to meet, all you need to do is spend $20 within 30 days of opening your Varo account. Check out my step-by-step guide to learn how to earn this bonus.

Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.

Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.

Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin's favorite fintech apps include:

SoFi Money. A really good checking account with absolutely no fees. You'll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $300 if you complete a direct deposit.
5% Savings Accounts. I'm currently getting 5.24% interest on my savings through a company called Raisin. Opening a Raisin account takes minutes to complete, it's free, and all of your funds are FDIC-insured. I explain how it works, why I'm now using it to store my emergency fund and any other cash savings I have, and why I recommend everyone check it out in this review.
US Bank Business. US Bank is currently offering new business customers a $900 signup bonus after opening a new account and meeting certain requirements.
M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account.
Empower. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.

Feel free to send Kevin a message here.