It is possible to invest in some alternative investments with your Super. Here are some you may not have considered…
Self managed supers are a fabulous opportunity to get creative about investment for retirement. The one-size-fits-all conventional fund has lost some ground and popularity as people realise they can explore a range of investment opportunities whilst enjoying the significant benefits of superannuation income tax concessions.
‘Today’s Best Investment’ website offers intriguing feedback about current returns on popular alternative forms of investment. According to their research:
- Green Investments average 3.8% per month.
- Stamps can earn an average of 13.2%.
- Fine Art investment comes in at around 30.15% annualized.
- Fine Wines earn 20-30%.
- Memorabilla/Collectors Items average 10-11% per year.
- Gold Investments bring 22% annual return.
The four most popular unusual investments are…
1. Agricultural & Food Investments
People are now successfully investing not only in agricultural land, but in seeds, farm machinery, wine, timber, olives, truffles, cricket bat willow plantations and the like.
Mary Robertson, a retired School-Teacher, invested successfully in fine wine. She says, “I love wine and being involved in the industry, and it’s made good money for me.”
2. Art & Cultural Investments
A truly fascinating way to invest is to buy art, cultural artifacts, memorabilia or collectibles, although your use and access to them until you reach retirement age is restricted by legislation.
John Crisp, a Music Producer, has created a rich reserve of investment pieces and harvested regular instalments of capital from his art collection, he says: “What I enjoy is that I have to keep an eye on art, which is far from being a chore!”
If you get it right art can be a stable investment. “Art tends not to fluctuate as much as the stock market and art investment portfolios can provide strong income streams in addition to potential long term capital growth,” says Raj Nanda, CEO of art investment company Art Equity, who manage art investment portfolios.
Now here’s an idea you may not have thought of… Invest in an ATM. ‘Own Your Own ATM ‘offers opportunities to invest between $14,000 to $37,500 in Automatic Teller Machines which then earns you 30¢ per transaction, or a minimum 20 per cent a year return on capital, whichever is higher.
So far the results of investment in ATM’s seem good. Chris Wright of ‘Smart Investor’ magazine states ‘ATM investment has a lot going for it as a stable income source.’
4. Gold Coins or Artefacts
Perth Mint reports doing a fine trade in gold coins as investments. They have an array of coins for sale ranging from 1.4 grams to 10 kilograms. There has been huge interest in gold as a safe haven in uncertain times, and as long as what you buy is pure it matters little what shape it comes in.
Clearly these are unconventional ways to invest your DIY super, and choosing them requires a lot more involvement, engagement and skill. There are many more conventional investments that you can make with your DIY super. But if you’ve ever dreamed of having good reason to collect Elvis memorabilia or invest in a vineyard, a self-managed super could be your moment to step up!