Art, Collectibles, And Culture
Art, collectibles, and culture investments look to capitalize on the appreciation and demand for rare things. That can be a famous work of art, a significant piece of history or culture, rare collectible assets, or rare luxury goods.
Accessibility
- Accreditation not required
- Good liquidity – secondary markets are somewhat common
- Low minimums ($10 – $500)
Return Profile
- Appreciation can vary greatly based on the underlying asset – sports cards, luxury watches, fine art, old cars
- Average appreciation could range from 1-10% annually
Unique Attributes
- A large range of potential investment options
- In some cases, such as with sports cards, investors may be able to leverage their expertise to select a better mix of assets
- The opportunity to own a piece of truly one-of-a-kind assets
Equity Crowdfunding And Startups
When companies debut on public stock markets, they often do so with large market capitalization. Those high valuations make it harder for public market investors to see significant gains. Equity crowdfunding and startup investments target smaller private companies in the hope of capturing more of a company’s high-growth years.
Accessibility
- Accreditation not required
- No or limited liquidity
- Low minimums available ($100)
Return Profile
- Equity crowdfunding and startup investments are generally appreciation-focused in their return profile.
- Returns will depend entirely on how well companies are selected.
- According to some research, venture capital funds have seen returns as much as 15-25% annually.
Unique Attributes
- Startup investments offer the potential for massive appreciation
- However, many companies will fail and the value of the investment will be completely lost
Farmland
Farmland benefits from some very important facts of life – we all need to eat, they aren’t making more land, and the supply of agricultural land is diminishing. This asset class can potentially offer investors appreciation, yield, uncorrelated returns, and a hedge against inflation.
Accessibility
- Accreditation Typically Required
- No or limited liquidity
- High minimums ($10K – $25K)
Return Profile
- Can offer both appreciation and yield
- Yields can range from 2-8%
- Appreciation has recently averaged 4-6% annually nationwide
Unique Attributes
- Row and permanent crops offer different risks and returns
- Historically low correlation to other risk assets
- Historically a good hedge against inflation
Music Royalties
Music royalties are the secret to how many parts of the music industry get paid. Learn how this unique asset class can help generate sustainable passive income for decades.
Accessibility
- Accreditation Not Required
- Variable liquidity
- Low minimums ($5 – $150)
Return Profile
- Yield-focused
- Returns 2-15% yearly
- Limited appreciation, possible depreciation
Unique Attributes
- Uneven yield profile
- Consistency based on song age
- Life of copyright term
Private Credit
In some ways, the economy is built on debt and lending. From buying a house to starting a business, loans are a consistent part of our personal and entrepreneurial lives. There are a variety of ways that investors can provide capital in exchange for yield and passive income.
Accessibility
- Accreditation sometimes required
- No or limited liquidity
- Low minimums ($10 – $100)
Return Profile
- Yields can range from 5-25%
- Charge-offs, foreclosures, and loss of principal are expected in at least some subset of loans
- A diversified portfolio of loans on a given platform could result in 5-10% annualized return
Unique Attributes
- Loans can be secured to help protect invested principal
- A huge variety of underlying asset types, as well as loan and repayment structures
- Possibility for uncorrelated returns, depending on the underlying assets in the lending or financing arrangement
Real Estate
Real estate investments seek to capitalize on our reliance on buildings and properties to live, work, and enjoy life. This asset class can offer appreciation, yield, and some potential tax advantages.
Accessibility
- Accreditation Not Required
- Variable liquidity
- Low minimums ($5 – $100)
Return Profile
- Can offer both yield and appreciation
- Yields often start at 1-5% yearly
- Residential real estate appreciation averages 3.5% nationwide, strong markets can appreciate more
Unique Attributes
- Depreciation can be used to offset taxable income
- A wide range of different opportunities within the asset class
Renewable Energy
Renewable energy investments look to generate income from the production and sale of energy to the power grid.
Accessibility
- Accreditation not required
- Limited liquidity
- Low minimums ($100)
Return Profile
- Total returns are earned only through yield
- The underlying assets are depreciating assets, meaning they lose value over time
- Yearly returns can range from 5-10%
Unique Attributes
- Uncorrelated returns – the stock market going down doesn’t make the sun less likely to shine
Wine, Whiskey, And Spirits
Investments into wine, whiskey, and spirits look to capitalize on the appreciation of scarce, high-quality assets. The production of the best wines and spirits are limited and supply tends to decrease over time as they are consumed.
Accessibility
- Accreditation Not Required
- Variable liquidity
- Low minimums ($50 – $100)
Return Profile
- Returns are earned through appreciation
- Wines appreciate as they mature, with a window of peak value
- Appreciation can vary greatly between the asset (wine vs spirits), the wine region and the vintage
- Appreciation has recently ranged from 3-10% yearly
Unique Attributes
- Potential for uncorrelated returns
- Value and scarcity increases with the age of the asset