The one piece of advice I have constantly gotten in my 20s is to start investing. I started dabbling in the stock market as a 21 year old, literally after getting my first "real" pay check. Lately, I've been on the hunt to figure out how else I can grow my wealth over time (hopefully retire early?). I've found a bunch of different investment options on the way that I never even dreamed would be an investment possibility, and some of the returns on these consistently beat the stock market. Don't believe me? Read for yourself!
Wait? Did I just say invest in cars? That doesn't sound entirely right, considering the fact that over the course of their lifetime, cars will lose over 30% of their value in just 3 years!
However, when it comes to classic cars - the kind you would see during a visit to Cuba or at Classic Car rallies and conventions are a big exception to this rule.
Historically, investing in cars has been the domain of the wealthy. It requires a lot of capital to be able to buy a car, fix it up, and then sell it for a premium. Car enthusiasts with cash, however, have been doing this for centuries.
How do laypeople like you and I, who do not have the access not the capital to make such kind of a commitment jump on this trend, though? The answer is Rally. Rally is a platform for buying & selling equity shares in collectible assets. While Rally now lets you invest in all kinds of collectibles and physical assets - it's first investable asset were classic cars! With Rally, it is as easy to invest in cars as it would be in the stock market.
How Does Rally Work?
Rally has a beautiful app that you can sign up for that allows you to buy and sell "share" in your asset of choice, quite similar to how you would trade a company!
They actively manage their investments. This means that they source, verify, and acquire the most valuable items from collections and individuals all over the world, and turn them into a company - don't worry they handle all the paperwork as well! These companies are then split into equity shares and are offered to investors via their platform. After 90 days since the "Initial Offering", investors can buy or sell their shares in-app.
Currently, Rally is US centric, but with their newest round of funding, they should be expanding to other countries across the world!
NFTs have lately taken the world of cryptocurrency and digital assets by storm after a digital artist known as Beeple sold his artwork for a whooping $69 million dollars at a Christie's auction.
But what even are NFTs? NFT stands for Non-Fungible Token. I don't know about you, but when I first heard those words my first reaction was, "huh?".
"Non-Fungible" in the most basic terms, means something that is unique and cannot be replaced. Currency, for example, is fungible because for every $10 notes, there exist millions of other $10 notes. The famous "Mona Lisa" painting is, however, non-fungible because you can't replace it with anything else in the world and expect to receive the exact same thing.
These NFTs are based on the premise of blockchain, which means that they can be authenticated and verified. The first company with a licensed marketplace was CryptoKitties. CryptoKitties was started by Dapper Labs in 2017, and at one point over 15% of the Ethereum transaction made were to buy or sell CryptoKitties.
While it was originally intended as an engaging game, CryptoKitties also presented itself as a lucrative and secure investment opportunity. Cats have ranged anywhere from $5 to well over over $300,000!
Marketplaces like Nifty Gateway are great to find digital art collectibles that might appreciate in value.
Historically, artwork investments have been the per-view of the wealthy. However, with the rise of fractional investing, platforms like Otis and Masterworks are creating space for investors like you and I to invest in this age old form of investment. What is fractional investing you ask? Fractional investing simply means that instead of buying a whole piece of art which can cost upwards of millions of dollars, these platforms buy the artwork for you. They then divide the value of the artwork into issuable "shares", much like you would do in the stock market, and then issue these shares to art "shareholders" like you and I!
Why is this an enticing investment space? Because historically, Blue chip artwork has outperformed the stock market! It is also a really good way to diversify your investment portfolio and minimise risk because even if the stock market crashes (which it tends to do periodically), artwork will often still go up in value! However, bear in mind that while artwork is a good and stable source of income it is not a "get rich quick" investment. You will likely need to hold your investment for a long period of time - sometimes even a decade.