9 Unconventional Things You Probably Didn't Know You Could Invest In
Every financial guru will tell you to invest for the future — and they're right. Compounding is how you build a retirement nest egg. The catch? Done correctly, it can be pretty boring.
Boring is exactly what you want for most of your portfolio, but there's a case for setting aside a small slice as "fun money." Almost anything with a fluctuating value can be an investment — Beanie Babies, an apartment building in Wichita, you name it. If it generates income or can be sold for a profit, it counts.
Check Out: 9 Experts Share Money Advice They Would Give Their Younger Selves
Be Aware: 5 Signs You’re Losing Money Every Month — and How To Find the Leaks
So if traditional stocks and bonds make your eyes glaze over, putting 1% of your portfolio into something you actually enjoy tracking might be worth it. Even if that slice underperforms, the payoff could be staying engaged with the other 99%. With that in mind, here are nine unconventional investments to consider.
Virtual Land
Although enthusiasm has diminished over the past few years, there are still plenty of believers in the future of the so-called “metaverse” – including billionaire Mark Zuckerberg, who went so far as to change the name of his company Facebook to Meta Platforms. The metaverse allows investors, speculators and those just looking to enjoy themselves to participate in something of a parallel universe to the physical world, one which proponents say will eventually have a fully functioning banking system and economy.
Within the metaverse, you can buy and sell plots of land. One of the most notable sales was someone who spent $450,000 just to be Snoop Dogg’s virtual neighbor.
Keep Financial Literacy Month going — learn how the MoneyLion app helps you track, manage and move your money in one place
Sports Teams
For most people, a sports team is something you watch and cheer on. But for a select few, professional sports teams are things that can be bought and sold.
In 2022, for example, the NFL’s Denver Broncos sold for a whopping $4.65 billion. Beyond the big-name teams, investors can also buy minor league teams for considerably less. For example, in 2010, the single-A baseball team, Hagerstown (MD) Suns, sold for a relatively low $6.7 million.
Burial Plot
Burial plots may seem to be an odd investment, but they continue to rise in value. As land for burials is limited – and constantly getting filled – burial plots tend to cost more every year. While it can be hard to “invest” in a burial plot – and you should verify that you’re legally allowed to resell them – they are an investment that tends to increase in value.
Music Catalog
If there is anything that the world learned from the notorious Big Machine Records/Taylor Swift feud, it’s that music catalogs can be extremely valuable. Often overlooked in the drama that followed – which included Taylor Swift re-recording most of her original masters – is the incredible $300 million price tag of the deal.
While few individuals could afford to cough up that type of coin for a music catalog, if you can find the right artist and latch on to them before they hit it big, you could score a big payday. Or, you could sign on for a share of royalties, in which case you might earn a small bit every time someone plays one of the songs in the catalog.
Parking Spots
Parking spots, particularly in big cities, are always valued at a premium. In places like New York, where real estate is extremely limited, monthly fees can run into the high hundreds of dollars per month, or even more.
This can make buying parking spots a potentially lucrative investment, whether you intend to rent the spaces out or flip them for more money later.
Luxury Goods
Any item that is rare and precious – like a luxury watch – can be a good investment, but you’ll have to know what you’re doing. The market for luxury goods like watches, handbags and shoes is rife with counterfeiters. While some ripoffs are obvious, others are very clever facsimiles, and it can often be hard for an amateur to discern between the two.
However, if you deal with reputable dealers – or just have an eye for the real McCoy – luxury goods like Rolex watches can be a fruitful market for investment.
Sneakers
Sneakers have become a new type of currency, especially for the younger generation. Shoe makers regularly offer “limited edition” sneakers, often tied to a sports personality, to hype up demand (and prices). Those lucky enough to gain access to a new release can often resell those sneakers on the secondary market for multiples of what they paid.
There is even a “SneakerCon” event dedicated to the buying and selling of coveted sneakers.
Microloans
Even a small investor could extend a microloan, which traditionally provides access to capital for underserved markets. For example, a small loan of $500 might be enough for a farmer in a third-world country to buy enough seeds and materials to develop a crop, the proceeds of which can pay back the loan.
Numerous apps and websites have sprung up to facilitate microloans, meaning you can often choose the exact individual or group that you want to loan your money to. Even if returns are small, many investors enjoy the satisfaction that their money is not only generating a return but also helping someone else.
Farmland
Investing in farmland can be aggressive, but it can also provide bountiful gains. As the population grows, so too does the demand for freshly grown food, and farmland is the only way to produce it.
In addition to speculating on the success of an individual crop, an investment in farmland is also a bet on the price of land. This is a specialized area of investment, so the best chance to get a payoff is if you understand the market for both real estate and crops in your area. But if you’re right, you can generate both income and long-term capital gains from a sound investment in farmland. If you don’t want to buy the land directly, you can invest in a real estate investment trust or crowdfunding organization.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.
More From MoneyLion:
Discover a Smarter Way to Keep Unexpected Expenses From Derailing Your Budget
The New Middle-Class Trap: Making $100K but Living Paycheck to Paycheck
