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Columns | Go Far With Kovar

Ways to Invest That Don't Involve the Stock Market

by Taylor Kovar
Hi Taylor - Things being what they are, I'm looking to invest some money outside of the stock market. Got any hot tips for me? - Lee

Hi Lee
- Alternative investments are always a strong bet, not just when the market is going through tumultuous times. There are so many ways to put your money to work outside of the traditional markets, but I'll stick with three of my favorites for now.

1. Timber. While the logging industry has certainly changed over the last couple generations to become more environmentally conscious, the demand for wood remains high. With farmed forests and access to so many unique types of lumber, you have inherent stability within this investing field. In addition to the importance of the material, you have a handful of ways to invest in the timber market. Buying acres of timberland is relatively straightforward, with value in the land itself as well as what the acreage produces. Many savvy investors go with timber-focused REITs to remove one degree of responsibility while still making money on the product. In any case, you can safely bet on timber to maintain value and weather financial downturns.

2. Real estate.
Buildings and land will fluctuate in value and consumer interest more than timber, but owning property means you always have an asset that typically increases its worth in the long run. If you have the time and means to buy a desirable vacation rental, you can create a steady flow of income in addition to the actual value of the property. You should at least consider some form of real estate, as few investments can deliver such long- and short-term rewards. Also, for the investor combating fears of market volatility, a physical piece of land or building can be an exceptionally comforting holding. As the old saying goes "They aren't making any more land!"

3. Precious metals. Precious metals make for useful alternative investments. Like real estate or timber, the intrinsic value of a physical element provides stability and diversification for standard portfolios. Buying gold bullion will give you a concrete investment that's excellent at value retention, while investing in precious metals ETFs or mining companies might allow you to escape a little market volatility while still enjoying the booms that come with economic progress. If you're looking for a non-stock investment you can rely on for long-term sustainability and insurance, precious metals should rank high on your list.

If you want to see more options, you can check out my article on GoFarWithKovar.com about alternative investments for this year. There are plenty of options and hopefully you'll find at least one of them exciting. Good luck!


© Taylor Kovar April 1, 2020
More "Go Far With Kovar"
Legal Disclaimer: Information presented is for educational purposes only and is not an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. To submit a question to be answered in this column, please send it via email to Question@GoFarWithKovar.com, or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.

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