Most people have a hobby of some kind. Something they do that isn’t work-related, that makes them feel inspired, and makes their free time more fulfilling. Investing in your hobby may be a way to create another touch point between you and your real passion. Plus, you may have some insight that gives you an advantage over other investors.
The traditional investment markets offer limited opportunities for any creativity or means of self-expression. Mutual funds, exchange traded funds, easy access to information, low-cost trading, and turn-key platforms make traditional investing an administrative endeavor. This traditional investing, done consistently, is the real key to long-term investing success. However, it doesn’t usually ignite anyone's zeal for investing or zest for living. (Unless, of course, you're an investment advisor trying to keep clients on track for retirement. Hi.)
Why not look for investments that align with your real passions? These non-traditional investments may offer the possibility of investment returns, but they’ll also keep you engaged with your total investment portfolio. Check your asset allocation, and while you’re at it…how’s that new vineyard coming along? Did the young golfer you sponsored get their tour card? What if your favorite new song also paid you royalties? Tell your friends to go see this cool indie film because it’s really good, and also because you helped with the financing.
Several platforms offer access to non-traditional assets that are targeted toward enthusiasts. Some of these platforms are:
Vinovest - Wine & whiskey
Yieldstreet - Staggering number of alternative investment opportunities
Masterworks - Art
Fundrise - Real estate, private equity, private credit
Kickstarter - Crowdfunding, early-stage venture capital
Carry - Young professional golfers
FarmTogether - Farm land
SongVest - Music royalties
Royalty Exchange - Music royalties
Wefunder - Broad range of opportunities in technology, manufactured goods and entertainment
MovieInvestor - Independent films
Many more platforms offer access to other hobbies and areas of interest.
A few sports teams offer fans a means to be part of the owners group. You can purchase shares in your favorite football (soccer) club. Manchester United, Arsenal, Celtic, Borussia Dortmund, AS Roma and Juventus all have stock that you can purchase (with varying degrees of difficulty for US-based investors). Oddly, the Atlanta Braves and Green Bay Packers are the only major American sports franchises that offer any sort of direct investment. One would think American sports team owners would jump at the chance to sell some non-voting shares to rabid fans.
Investing in your passion can be fun and interesting, but these investments do have some risks.
It's important that you go into these investments with your eyes wide and expectations in check. This type of investing may align with your real passions, but that doesn't always translate to investment returns. Keep your passion investments to a reasonable allocation of your overall investment portfolio. The best attitude is a realization that investment returns aren't the only, or even primary, goal. Investing is another means to enjoy the hobby, interest, or team that makes you feel alive.
For passion investing, you are your own best counsel. Be smart, be brave, be careful, be passionate. For more traditional investing to meet your retirement goals, Windham Wealth Management is here to help. It’s rarely exciting, but it is important. Reach out to us to learn more.