Use these alternative investment ideas to reshape your portfolio

Suppose you are worried about your investment portfolio and want to diversify to protect it from inflation, the economy, and the various other forces working against it. In that case, it's time to choose alternative investments like private equity, real estate, and more. 

Many more alternative investment ideas are floating around the blogosphere than in the past. This doesn't mean all of them are good or deserve your attention. 

So, how to pick the best ones out of the lot and have some of your assets in there? The curated list of alternative assets below should help in diversifying investments. 

Commodities and Precious Metals

When the going gets tough, the tough choose gold and precious metals. That's not how the saying goes, but it should. Gold is the most useful hedge during tough economic times.

It should be a given that some of your portfolio should be in non-traditional investments, and gold should be one of the chosen ones. 

Gold has been trading at all-time highs and recently went up to its highest point on October 20, 2025, when it reached US$4,379.13 per ounce. Is it a good time to buy gold?

Well, the idea here is to always have some gold in your portfolio as a hedge against anything that could potentially go wrong. Gold tends to rise when the stock market falls. 

In any case, if you feel like you need some solid and tangible assets in your portfolio, then purchase some physical gold coins and bars and either store them in a safety deposit box in your home (if you have one) or have your financial institution store them for you.

Many services out there where you can purchase gold from them, and they will store it for you as well. Makes owning gold much easier for the average investor. 

Cash-Flow Investing Exchange Traded Funds (ETFs)

Which investor doesn't like the sound of steady cash flow dripping into their accounts on a monthly basis? It is pure bliss. 

Well, Abacus Asset Group offers ETF and index-based investment products that focus on cash-flow investing and other income-generating strategies. 

If you are looking to have a monthly cash flow when you retire so you can focus on living your life to the max rather than worrying about getting a second or even third job like so many Americans are prone to do, then ETFs from Abacus Asset Group are something to consider. 

They also have other alternative investments like closed-end long-term funds investing in longevity assets (life settlements), and Reg-D private placement funds. 

Real Estate

Even though real estate might not be considered an alternative investment any longer, it is truly the bastion of investments for all. No matter what the rest of your investments are doing, you can at least rely upon the passive income that flows from your real estate investments, be it commercial, residential, or REITs. 

There are so many ways for an investor to get access to this investment, which was previously restricted to only the very rich. 

Do not assume that your primary residence is going to be part of your investment portfolio. In fact, it's better not to include it. 

Have other real estate investments, though, like condos, commercial buildings, apartment buildings, and more. Have a property manager taking care of things for you so you can truly have a hands-off attitude to your investments. 

Private Credit

Banks and financial institutions aren't the only ones lending to consumers anymore. You can become a private lender as well, if you have the means. It doesn't have to mean that you are lending out millions of dollars, either. 

You can start off with $10,000 with certain institutions and then go up from there. This is a great way to get high returns, but it also comes with high risk. 

That's why it's an alternative investment that should comprise only a small part of your investment portfolio. Just like cryptocurrencies, which can be quite volatile and should make up only about 2% of your investment portfolio, the same applies to private lending or private credit. 

Also, do your research before lending to private individuals, checking their credit scores, and ensuring they are reliable enough financially. You don't want them to go bankrupt and then default on your payments. 

Frequently Asked Questions

How Do I Become a Millionaire by Saving $100 a Month?

The name of the game here is consistency. If you save $100 a month from age 25 to 65 and invest it all into an index fund, then by the end of it, you should have around a million dollars saved up. This is assuming that you don't miss even a single month. 

Most people aren't going to be that consistent, unfortunately, and that's why there are fewer millionaires than should be. 

What Is Warren Buffett's 70/30 Rule?

Warren Buffett says that you should have 70% of your investment portfolio in stocks and 30% in bonds. This is just one strategy and should be taken with a grain of salt.

Everyone has a different risk portfolio, and if you are the kind of person who can manage a higher risk, then you should have a bigger part of your portfolio in stocks. Also, as you get older, you should reduce the percentage of stocks in your portfolio, as you wish to reduce your risk exposure. 

Again, you should consult a financial advisor on all of these matters so they can guide you on the best investment mix and which non-traditional investments to add to your portfolio. 

Add Some of Our Alternative Investment Ideas to Your Portfolio

Having alternative investments in your portfolio doesn't mean it's protected from all downturns, but it does act as a bit of a buffer, as any diversification is good for your investments. 

Now that you have some alternative investment ideas to work with, get going and move some of your money around. 

If you liked this article, then keep reading through related material on our website and stay informed. Knowledge is power after all, and never more so than when it comes to investments. 

This article was prepared by an independent contributor and helps us continue to deliver quality news and information.