13 Things to Invest in Beyond Stocks: A Complete Guide to Non-Stock Investment Options

Most investors instinctively think of the stock market when considering where to put their money. However, building a robust portfolio that includes things to invest in besides stocks is often a smarter strategy. Whether you’re concerned about market volatility, want to explore alternatives to stocks, or simply aim to diversify your holdings, numerous investment options exist outside the traditional equity markets. These alternatives range from conservative, steady-return instruments to highly speculative ventures — so conducting thorough research before committing capital is essential.

Real Estate Investments Without Direct Property Ownership

Real Estate Investment Trusts (REITs) offer an excellent way to gain real estate exposure without requiring millions of dollars or extensive research into property markets. Rather than buying physical properties yourself, REITs pool investor funds to purchase and manage various real estate assets including residential complexes, commercial buildings, hospitality properties, and industrial warehouses. The income generated from rental operations gets distributed to shareholders, making this one of the most accessible things to invest in for those seeking real estate returns.

The beauty of REITs lies in their liquidity and accessibility. You can start with relatively modest amounts and still participate in a diversified real estate portfolio. This makes them particularly attractive for investors who recognize the limitations of direct property investment but still want real estate exposure in their portfolios.

Peer-to-Peer Lending: Direct Access to Loan Returns

Another compelling alternative to stocks involves lending money directly to individuals through peer-to-peer (P2P) lending platforms. Services like Prosper and Lending Club allow you to fund personal loans with contributions as small as $25. As borrowers repay these loans with interest, you receive your returns — providing a different income stream than traditional investments.

The key to managing risk in P2P lending is portfolio diversification. While investing in a single loan creates significant exposure to borrower default, spreading your capital across numerous smaller loans substantially reduces this risk. Many investors maintain portfolios of 50 to 100 individual loans, ensuring that even if several borrowers default, they still achieve positive overall returns.

Savings Bonds: Government-Backed Security

For those prioritizing safety over aggressive growth, savings bonds represent one of the most secure things to invest in beyond stocks. The federal government issues these instruments in two main varieties: Series EE bonds that provide fixed interest rates, and Series I bonds featuring inflation-adjusted returns. Since the government backs these bonds, you face minimal default risk — essentially only risking your capital if the U.S. government defaults on its obligations, an extraordinarily unlikely scenario.

While returns may lag long-term stock market appreciation, the guarantee of not losing your principal makes savings bonds invaluable for conservative investors and those with defined financial timelines.

Precious Metals: Tangible Wealth Storage

Gold investment represents a tangible alternative to stocks with multiple entry points. You can acquire gold through physical bullion, coins, mining company stocks, gold-focused mutual funds, or futures contracts. The Federal Trade Commission (FTC) advises potential buyers to research companies thoroughly before purchasing and to ensure secure storage arrangements, whether through bank safe deposit boxes or reputable custodians.

Gold prices fluctuate significantly based on market conditions, geopolitical events, and economic uncertainty. This volatility means gold serves as either a hedge against inflation or a speculative bet, depending on market timing and your investment thesis.

Certificates of Deposit: Guaranteed Fixed Returns

Certificates of Deposit (CDs) are time-deposit accounts offering predetermined interest rates protected by the Federal Deposit Insurance Corporation (FDIC). You commit your funds for a specific period — ranging from a few months to several years — and receive guaranteed interest. Early withdrawal typically triggers penalties, but your principal remains completely secure.

While CD returns typically underperform long-term stock market gains, the certainty of your returns and principal safety make CDs attractive for investors seeking predictability in portions of their portfolios.

Corporate Bonds: Ownership-Free Company Lending

When corporations need capital, they issue bonds that investors can purchase directly or through secondary markets. Bond investors receive regular interest payments and face value repayment upon maturity. Interest rates adjust according to the issuing company’s creditworthiness — riskier companies offer higher yields to compensate bondholders.

Unlike stocks, owning corporate bonds grants no ownership stake in the company. You won’t participate in exceptional profits during boom years, but you’re equally protected from income reduction during downturns. This predictability makes corporate bonds a stabilizing force in diversified portfolios, though company insolvency can result in partial or total loss.

Commodities Futures: Leveraged Commodity Exposure

Futures contracts allow you to speculate on future prices of commodities including agricultural products (corn, wheat, soybeans) and metals (copper, oil). As supply-and-demand dynamics shift, contract values fluctuate — potentially creating substantial profits or significant losses. Commodities can serve as inflation hedges since rising prices typically benefit commodity investors, but these markets involve sophisticated participants and considerable complexity.

Only experienced investors with strong risk tolerance should consider commodities futures, as the leverage involved can amplify losses dramatically. This represents one of the highest-risk alternatives to stocks.

Vacation Rental Properties: Property as Both Asset and Utility

Purchasing vacation properties to rent when not personally using them combines portfolio growth with lifestyle benefits. Platforms managing short-term rentals have simplified operational complexity, allowing owners to generate rental income covering expenses while waiting for property appreciation. The downside involves liquidity constraints — selling these properties takes time, making them unsuitable if you need emergency access to capital.

This strategy appeals to investors who want real estate exposure while maintaining the ability to enjoy their investment personally during selected periods.

Digital Assets: The Cryptocurrency Frontier

Cryptocurrencies like Bitcoin represent decentralized, non-governmental digital currencies experiencing worldwide adoption. While Bitcoin dominates name recognition, thousands of alternative cryptocurrencies exist. Current Bitcoin valuations reflect continued market interest, with trading volumes in the billions of dollars demonstrating significant capital deployment.

Crypto investments carry extreme volatility, with price swings that test even experienced traders’ emotional resilience. This category suits only sophisticated investors with substantial risk capital and genuine conviction about digital asset fundamentals — not casual portfolio diversification.

Municipal Bonds: Tax-Advantaged Government Lending

City and state governments issue municipal bonds to fund infrastructure projects like schools and highways. While municipal bond yields often trail corporate bonds, the interest earned typically remains exempt from federal taxation and sometimes state and local taxes as well. This tax advantage can make after-tax returns from municipal bonds competitive with higher-yielding taxable bonds.

For high-income earners in elevated tax brackets, municipal bonds offer particularly compelling after-tax value among things to invest in besides stocks.

Private Equity Funds: Professional Management of Private Companies

Private equity funds aggregate investor capital under professional management to acquire and develop privately-held companies. This structure can generate exceptional returns, but comes with drawbacks: significant management fees, capital lockup periods extending years or decades, and accreditation requirements limiting access to investors meeting income and net worth thresholds.

Most individuals cannot access private equity directly unless they qualify as accredited investors, making this a limited option for average portfolios.

Venture Capital: Early-Stage Company Funding

Venture capital investing means providing funding to startup companies pursuing growth. Similar to private equity but focused on earlier business stages, venture capital demands higher risk tolerance given startup failure rates. While some opportunities now exist through equity crowdfunding platforms, direct access typically remains restricted to accredited investors.

The potential for extraordinary returns exists, but so does the possibility of total capital loss.

Annuities: Structured Insurance-Backed Income

Annuities involve paying an insurance company a lump sum in exchange for guaranteed future payments over a specified period or lifetime. Variations include fixed-rate, variable, and indexed annuities — each calculating future payments differently. Tax-deferred growth on earnings provides advantages, but high fees and substantial broker commissions create headwinds.

Because brokers often earn significant commissions from annuity sales, skepticism regarding whether this recommendation serves your interests rather than the advisor’s is warranted. Independent research before purchasing remains essential.

Building Your Non-Stock Investment Strategy

The investment landscape extends far beyond equities and mutual funds. Recognizing multiple things to invest in besides stocks allows you to construct portfolios resilient to stock market fluctuations. Your optimal mix depends on risk tolerance, time horizon, and financial objectives. Whether emphasizing government-backed security through bonds, real estate exposure through REITs, or speculative upside through cryptocurrencies, alternatives to stocks deserve serious consideration in comprehensive wealth-building strategies.