Types of Investments

By | February 2, 2012

There are many ways different types of investments. On this blog, I mainly focus on passive investments because that is a huge part of my plan to retire early. (Essentially by building up passive investments and focusing on cash flow, I will be able to retire within the next 2 and a half years.) Yet, focusing entirely on passive investments doesn’t always highlight the different types of investments. I could bore you with the different options available to you  like stock options, bonds, retirement investments, etc., but how about some non-traditional types of investments?

Looking Beyond the Traditional Types of Investments

Let’s face it. When you think of investments, your mind most likely leads to ideas like stock market, 401k’s, bonds, etc. It may just be me, but these seem to be pretty boring. There is nothing exciting about storing away a percentage of your income into a fund that you won’t touch for decades. Don’t get me wrong – it is an important aspect that everyone should be taking advantage of, but there is a reason why people get bored with their finances. These types of investments are likely to make someone go off and buy something to avoid the boredom. But, what if investing was more exciting? What if we could consider other aspects of investments that would get your blood running?

Instead of focusing on the essential types of investments – the traditional, cookie-cutter type investments – I want to come back to what I talk about a lot on this blog. Non-traditional forms of investing. The fact is that the world is changing and we have to step outside of the box to realize other areas where you can find a huge return on your investments.

Non-traditional Types of Investments

Blogs: I have written elsewhere that I think that blogs can be investments. I know many others think of investing in blogs similarly as hundreds, if not thousands, of websites are sold on a weekly basis. People are starting to understand that there is such a thing as online reality. While blogs do take effort and a time investment, I believe it is possible to hire out the many aspects of running a blog while still making a profit. If you have enough of these, why couldn’t you earn a full-time income from blogging?

Real Estate: Investing in real estate or rental properties may be more traditional, but it seems like less and less people are considering investing in real estate. In fact, it seems like people are shying away from real estate because of those few bad renter stories that ruins it for them. Yet, real estate continues to be a great idea in my mind. I look forward to investing in rental properties and am formulating my plan as we speak. I will be sure to write more about my plan to use real estate for retirement.

When you think of the different types of investments, do you think of Blogs and real estate? If my estimates are correct, I think you can see a larger return on these two areas than you can in the stock market. If this is the case, why are people not taking full advantage of these avenues? Is it just a lack of familiarity or is it the uncertainty of the return?