How To Invest Half a Million, $500.000 Dollars
Warren Buffet, self-made millionaire and investing legend, has famously been known to say, “never invest in a business you don’t understand”. True words indeed, especially if you’re investing a small fortune. However, Buffet’s quote also applies to industries, assets, stocks, shares and anything else you can put your money into; no matter how lucrative an investment looks, proper understanding and accurate information is absolutely key to a decent return. That said, there are some highly lucrative, alternative ways to invest your money if you know what and where. Let’s take a look at some of them:
Wine still ages well
You may think wine is just for hobbyists or ‘connoisseurs’. Or maybe you’re too busy drinking wine to think about investing in it! Either way, if you have half a million dollars to spend, wine can actually be a highly lucrative place to put your money if you’re in it for the long-term. According to The Telegraph newspaper in the United Kingdom, wine is one of the best performing asset classes of the last 20 years. At the world famous Bonham’s auction house recently, 12 bottles of 1988 Romanée-Conti wine went under the hammer for $230,000. That’s over $500 a sip!
Art is going through a renaissance
You don’t need to own a Picasso, Hockney or Pollock to make a high return on art. Thanks to the surge in popularity of street artists, like Banksy, over the last decade, the art market has boomed, opening up to a whole new generation of buyers and sellers. From the fierce imagination of Dublin born Lena Peters to the existential musings of ceramic sculptor Barnaby Barford, modern art is going through a bit of a renaissance (no pun intended) right now. Be careful to follow the market closely though, and diversify: a drop in value of one artist can pave the way for a drop in value of similar artists. As with wine, learn as much as you can, in particular how to discern the quality of an artists’ work. Remember, it’s better to buy a great Wesselmann than a bad Warhol, for example.
Gold is the standard
Gold is always a solid performer and a great way to turn $500.000 dollars into a ‘legacy’ for your family. If you compare the price of gold over the last 30 years and the last 15 years, the growth rate has been virtually identical (335% vs 315%). However, did you know that there are actually many different ways to own gold? From gold certificates to gold exchange ‘traded funds’, each one has its own pros and cons. Physical gold, for example, is extremely resilient in times of economic crisis, but it underperforms most other assets. Rare gold coins on the other hand, go up and down extremely quickly so are a lot more viable for investors.
Whatever you do, make sure you get expert advice first – there is always a learning curve. Speaking to a financial professional will provide you with that much-needed peace of mind and important guidance on the do’s and don’ts.
If you’d like further advice about investing in alternative assets like wine, gold and art, fill out the form below to speak to one of our experts. Our top-line advice is always free, and we can offer a range of resources to help you gain a better understanding of where to put your money: