Have you ever considered investing in other asset classes than stocks and bonds? I think we should all have a diversified portfolio, and while stocks and bonds are important, there are other investments to consider. You may even have something of value stashed in a closet or attic. And, these other types of investments have been doing very well in the last few years. A very wealthy friend of mine recommends to never put more money into one thing than you make in a year. It is good advice! There are many articles these days about diversifying your portfolio to include items that you (or at least me) might never think about. Children’s books, rare books, wine, figurines, art, and some antiques can be great investments. Not only could they appreciate, but you can enjoy their beauty if something goes wrong in the investment world.
Apparently, this idea has caught on as the art and rare book markets are soaring – not to mention the Teddy Bears market!
Bauman’s Rare Book store in New York City has seen a surge in people building collections in first edition books such as “Babar” and Charlotte’s Web”. A first edition “Winnie-the Pooh” now sells for about $7,000. Do you have any stored in your Grandmother’s attic?
People are buying gold, and planting crops too! Gold is always an excellent hedge (please see my blog: Gold Digger). And, with the ‘dust bowl’ and drought in the center of the country, expect crop prices to skyrocket – can you grow a garden in your backyard? Green market vendors would probably appreciate purchasing your crops to sell at local markets. An ear of corn has gone from $0.10 an ear to over $0.50 per ear. Not only will your garden help your budget, you can make some cash too.
Wine is also an excellent investment, and I cover it thoroughly in “Flirting with Finance”. Just think, a case of 2000 Lafite Rothschild sold for $2,500 in June 2002, and today that same wine is worth about $24,000. A very nice return!! And, if you don’t need the investment return, you can always drink it – cheers!
Good luck, and feel free to email me for advice!
Gwendolyn Beck started her finance career on the bond trading floor. She then moved to stocks and IPO with Morgan Stanley and personal financial planning with Wachovia. She wrote “Flirting with Finance”, a fictional novel, for a fun way for women to learn about finance through all the relationships and events we may have in our lives. “Flirting with Finance” is available through Barnes & Noble. You can contact Gwendolyn at www.flirtingwithfinances.com.
Top photo credit: Stock Investing Moms