What are the long term safe investments for growing wealth, especially investments outside stock market?
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What are the long term safe investments for growing wealth, especially investments outside stock market?
This feels like cheating in a way. “Technically”, the bond market is a separate market than the stock market. If you want consistent bonds, then purchasing long-term Treasury bonds/government bonds are usually a good and safe bet. Again, unless you are betting against the collapse of the U.S. government (or whichever government bond you are investing in), you can be pretty sure that your loan will be repaid with interest.
To me, the best investment outside the stock market is real estate. Specifically rentals. Real estate can be purchased with high leverage and when structured correctly, the rent pays for the property. As rents go up, profits also rise.
Over the long term, property also appreciates. It is a very good combination.
The down side (and there is always a down side) is the problem of management. Renters can be some pretty nasty people. Property rarely if ever depreciates, unless the property is abused, and if you learn how, you can buy/flip houses and build into properties that earn you passive income by charging rents. That includes houses, apartments and commercial properties. If properly done, within 5 years you could have serious passive income coming in that will enable you to keep reinvesting into more properties.