What You Should Invest In Beyond Stocks: 13 Alternative Options to Grow Your Wealth

Thinking about where to invest your money but want to explore options besides stocks? You’re not alone. While the stock market gets most of the attention, there are actually numerous ways to invest and build wealth that don’t depend on equity markets at all. In fact, spreading your investments across different asset classes—especially those that move independently from stocks—is often considered a smart diversification strategy.

Beyond just mutual funds and exchange-traded funds, alternative investments can help protect your portfolio from market volatility while potentially offering competitive returns. Whether you’re hesitant about Wall Street or simply want a more balanced approach, understanding these investment vehicles can help you make more informed financial decisions.

Lower-Risk Investment Options for Conservative Investors

If protecting your principal is a priority, several investment types offer relative stability and predictable income streams without the ups and downs of equities.

Certificates of Deposit (CDs)

Bank-backed CDs provide a guaranteed interest rate for a fixed time period, with your deposits protected by the Federal Deposit Insurance Corporation (FDIC). You’ll know exactly what you’ll earn before you invest, though you’ll face penalties if you withdraw early. While returns typically won’t match long-term stock gains, your money won’t lose value—backed by the full faith and credit of the U.S. government. This makes CDs ideal for money you know you won’t need in the short term.

Savings Bonds

The federal government offers savings bonds as another government-backed option. Series EE bonds provide fixed interest rates, while Series I bonds include inflation protection by tying part of their return to inflation rates. The security is unmatched since you’d only lose money if the government itself defaults—an extremely unlikely scenario. These work well for conservative investors seeking stability over growth.

Corporate Bonds

When companies need capital, they issue bonds that you can purchase. You’ll receive regular interest payments and get the face value back at maturity. The interest rate depends on the company’s creditworthiness—riskier borrowers offer higher yields to compensate. Unlike owning stock, bondholders don’t share in company profits during good years, but their interest income stays constant even when the company struggles. Still, while corporate bonds are often quite secure, bankruptcy could mean losing most or all of your investment.

Municipal Bonds

Cities and states raise money for infrastructure projects like schools or highways through municipal bonds. These often offer lower interest rates than corporate bonds, but here’s the advantage: the interest is typically exempt from federal taxes and possibly state/local taxes too. This tax advantage can make your after-tax return competitive with higher-yielding bonds elsewhere.

Moderate-Risk Options for Balanced Investors

Ready for more growth potential but still want reasonable stability? These alternatives offer a middle ground between safety and opportunity.

Real Estate Investment Trusts (REITs)

Want exposure to real estate without buying property yourself? Real estate investment trusts invest in various properties—residential, commercial, hotels, warehouses—and distribute rental income to shareholders. You can build real estate into your investment portfolio without needing millions of dollars or spending countless hours researching local markets. REITs provide liquidity that physical property ownership can’t match.

Peer-to-Peer Lending

Through platforms like Prosper and Lending Club, you can become a lender to individual borrowers. You might contribute as little as $25 to fund a loan and earn interest as borrowers repay. The catch? Borrowers can default, and you could lose that money. However, by spreading small amounts across many loans instead of betting everything on one borrower, you significantly reduce individual default risk. If one borrower fails among a hundred, you’d likely still profit overall.

Gold and Precious Metals

Gold serves as both an inflation hedge and a portfolio diversifier since it often moves differently than stocks. You can invest through physical bullion, coins, mining company stocks, futures contracts, or mutual funds holding gold. If purchasing bullion or coins directly, ensure secure storage like a bank safe deposit box. The Federal Trade Commission warns that gold prices fluctuate and advises investigating any storage company thoroughly—especially important if they’re holding your gold rather than you taking physical possession.

Higher-Risk, Higher-Reward Alternatives

For investors with greater risk tolerance and longer time horizons, these options offer substantial growth potential alongside significant volatility.

Vacation Rental Properties

Owning a vacation home that generates rental income when you’re not using it can balance personal enjoyment with financial returns. You get to use the property for vacations while rental income helps cover expenses and the real estate appreciates over time. The downside: property isn’t highly liquid, so if you urgently need cash, finding a buyer might take time.

Commodities Futures

You can buy and sell contracts representing future delivery of commodities—grains, metals like copper, and foodstuffs. As supply and demand shift, contract values change dramatically. This creates opportunities for substantial profits or losses. Commodities can hedge against inflation, but the market is complex and highly competitive. Enter with extreme caution, as this requires significant expertise.

Cryptocurrencies

Digital currencies like Bitcoin operate outside traditional financial systems and have gained worldwide adoption. Bitcoin is the most recognized, but many alternatives exist. Crypto prices swing wildly and aren’t for the risk-averse. This investment type suits only those who can stomach extreme volatility or believe they genuinely understand the space.

Private Equity Funds

These funds pool capital to invest in privately held companies, with professional managers working to help those companies grow. Returns can exceed public market results, but management fees run high and your money typically stays locked up for years. Additionally, most private equity funds restrict investment to accredited investors—you’ll need sufficient net worth or income to qualify.

Venture Capital

Similar to private equity but focused on early-stage startups, venture capital investing means funding new businesses. These investments carry substantial risk but offer massive upside if companies succeed. Like private equity, opportunities are traditionally limited to accredited investors, though newer options like equity crowdfunding have opened doors for some retail investors.

Annuities

Insurance companies offer annuities: you pay an upfront amount and receive scheduled payments over time or for life. They come in fixed versions (predictable payments), variable types (payments tied to market performance), or indexed versions (linked to specific indexes). Annuities let you defer taxes on earnings until payments begin, but high fees can eat into returns. Be cautious since brokers earn substantial commissions, which might cloud their recommendations. Do your own research before committing.

Making Your Investment Decision

These alternatives range from nearly risk-free to highly speculative, so understanding your personal risk tolerance, time horizon, and financial goals is essential. Many investors find that combining several of these approaches creates a resilient, diversified portfolio that doesn’t depend solely on stock market performance.

Before investing in anything, educate yourself thoroughly. Understand how each vehicle works, what risks you’re taking, and how it fits into your broader financial picture. The right investment strategy for you depends on your unique circumstances—not what works for someone else. By exploring options beyond stocks, you’re already taking a smart step toward more intentional wealth building.

Whether you’re seeking stable income, long-term growth, or maximum diversification, understanding what to invest in besides stocks gives you more control over your financial future and more paths to reach your wealth-building goals.