But payoffs can be big.
Further up the risk curve, online brokerages let you invest in the next Twitter, though you’ll need nerves of steel. “New launches are luring investors,” says Jeffrey Sohl, director of the Center for Venture Research at the University of New Hampshire. “But if you can lose money without changing your lifestyle, that investment is fine.”
Here are some other alternative investments to consider.
Some out-of-the-box, alternative investments can pay you beefy interest rates — and can even be fun or help others. They range from investing in Broadway shows, becoming a hard-money lender, funding startup companies and dishing out loans to peers. The vehicle you choose depends a lot on your risk tolerance.