How to Get Ultra-Wealthy Without Taking on the Risk of Crypto | The Motley Fool


I don’t consider myself an overly conservative investor. Despite that, I’m still nervous about the idea of sinking a lot of money into crypto.

There was a time when I was convinced cryptocurrency was a worthless investment entirely. Now, I feel differently — but I also don’t know that I have the stomach to bear the crypto-market’s ups and downs.

Plus, there are other reasons why digital coins don’t fit well into my investing strategy, which is centered on buying quality stocks and holding them for decades. But crypto hasn’t been around all that long, and we don’t know how viable investing in it long term will be.

A person at a laptop.

Image source: Getty Images.

It’s for this reason that I barely own any crypto right now. But that doesn’t mean I’ve given up on growing wealth in my portfolio. If you don’t want to take on the risk that comes with investing in crypto, here are a few other, less-risky options to look at.

1. Load up on S&P 500 ETFs

A diverse portfolio could be your ticket to growing wealth, and you get a lot of diversity when you invest in the S&P 500 index. That’s why S&P 500 exchange-traded funds (ETFs) are a great bet.

S&P 500 ETFs let you put your money into the broad market without researching different stocks. And while they won’t help you beat the market, matching the performance of the S&P 500 since its inception isn’t a bad thing at all.

2. Buy dividend stocks

The great thing about dividend stocks is that they offer two different opportunities to make money. First, like all stocks, their value can grow in time. But also, stocks that pay consistent dividends give you another income stream to work with.

In fact, a good bet is to set yourself up to have your dividends reinvested so you’re putting your extra money to work. Doing so could really help your portfolio value soar.

3. Invest in REITs

REITs, or real estate investment trusts, are companies that derive revenue from different properties. One benefit of owning REITs is that their value doesn’t always correlate to gains and losses in the broad stock market. So they’re another way to diversify and buy yourself some protection during periods of market turbulence.

REITs are also known to pay generous dividends. And that’s money you can reinvest regularly for added growth.

Within the realm of REITs, there are different sectors you can target. I happen to be a fan of industrial REITs right now because the need for warehousing space has exploded since the start of the pandemic. But there are different REIT categories you can choose from, based on your personal strategy and objectives. And of course, you could always pick your REITs based on their dividend yields.

Let’s be clear — any investment you take on comes with risk. You could buy shares of a stock that’s done well for years, only to see its value tumble. But for the most part, all of these options are less risky than crypto, so it pays to rely on them to grow your portfolio if digital coins aren’t your thing.

Read More: How to Get Ultra-Wealthy Without Taking on the Risk of Crypto | The Motley Fool

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