The United States has one of the most mature financial markets in the world. There are so many things you could invest here. Making one investment means giving up all other investment opportunities at the same time. Many people miss investment opportunities simply because they are not aware of other investment options. I will try to list most of the investment options in the market to help you make an informed decision.
The chart below is an interactive map. You could click the note icon for my explanation and comments about that specific investment. On the left side of the chart, I list most of the common underlying investments. And most of the investment vehicles used to invest in some or all the underlying investments are listed on the right side.
Please be aware of that you may not be qualified to invest in all the investments listed above. To protect normal investors, federal securities laws require that certain type of private investments can only be offered to investors who meet certain income and/or net worth requirements. The requirements for different type of investments may vary. The most common requirement is “Accredited Investor”. Most of the private equities, hedge funds, venture capitals and real estate crowdfunding investments require their investor to be an accredited investor. Some of them also have a stricter “Qualified Purchaser” requirement. Private loan investments through Peer to Peer (P2P) lending platform have their own requirements. Platforms offering investments in business loans generally require the investor to meet the “Accredited Investor” requirement. Investing in personal loans through platforms like Lending Club and Prosper usually has a lower requirement. Investment companies will let you know about these requirements. From the investor perspective, these requirements remind you the risks associated with each type of investments. Generally, the stricter the requirements, the higher the risk. Your own due diligence is very important to make an investment decision.
The main purpose of this post is to give you a general picture of what investment options are available to you.In my humble opinion, no one investment is superior to another. There are only trade-offs. It all comes down to your own risk profile and investment objectives. Hopefully, this blog could help you make a better decision in the future.