Beyond Stocks: 10 Actually Good Investments for Real People (2023 Guide)

Honestly? When most folks think about investing, they immediately jump to stocks. But here's the thing I've learned over years - and yeah, made some mistakes along the way - there's a whole world of genuinely solid options out there. Stuff that doesn't require staring at charts all day or losing sleep over market swings. We're talking about good things to invest in that build actual wealth over time, not just gamble on hype. Remember that coworker bragging about their crypto "mooning" last year? Mine lost nearly 70% on a meme coin frenzy. Lesson learned the hard way. True, lasting wealth usually comes from boring consistency, not lottery tickets. So, let's cut through the noise and look at investments with real substance.

Foundations First: The Non-Negotiables

Before we dive into the shiny objects, let's get brutally practical. You wouldn't build a house on sand, right? Investing needs bedrock too.

Your Own Debt Hole (Especially the High-Interest Kind)

Seriously. Paying off credit card debt charging you 20% APR is like getting a guaranteed 20% return on your money. Where else can you find that? Absolutely nowhere safe. I tackled a $7,000 credit card bill years ago. That feeling of zero minimum payments? Better than any stock dividend I've ever gotten. It freed up cash to actually invest.

The Emergency Fund: Your Financial Shock Absorber

Three to six months of living expenses. Cash. In a boring, accessible high-yield savings account like Marcus by Goldman Sachs (around 4.5% APY as of late 2023) or Ally Bank (similar rates). This isn't "investing" for growth, it's investing in peace of mind. Without this, any market dip becomes a personal crisis forcing bad decisions.

Maxing Tax-Advantaged Accounts

Think 401(k)s, IRAs (Traditional or Roth), HSAs. This isn't *what* you invest in, but *where*. The tax breaks are massive multipliers. If your employer offers a 401(k) match, contribute at least enough to grab the full match. It's free money. Literally.

Quick Reality Check: If you're carrying high-interest debt or lack an emergency fund, chasing other investments is like trying to fill a leaky bucket. Fix the leaks first. Then pour in the good stuff.

Tangible Assets: Investing in Stuff You Can (Sometimes) Touch

There's something psychologically comforting about assets you can see or use. They often weather inflation better too.

Owning Your Roof: Primary Residence Real Estate

Forced savings, potential appreciation, tax benefits, and hey, you need a place to live. Historically, U.S. real estate appreciates around 3-4% annually on average, plus you build equity by paying down the mortgage. But it's not all roses. Closing costs are brutal (3-6% of purchase price), maintenance is relentless (budget 1-3% of home value yearly), and it's illiquid. Remember 2008? Prices *can* drop. I love my house, but the $12k roof replacement last year stung. Hard.

Hands-Off Real Estate: REITs

Real Estate Investment Tours (REITs) let you invest in real estate without fixing toilets. They trade like stocks. Look for solid ones like: * **VNQ (Vanguard Real Estate ETF):** Broad exposure, low expense ratio (0.12%). Around $80 per share as of late 2023. * **O (Realty Income):** The "Monthly Dividend Company," known for consistent payouts from commercial properties. Focus on low-fee funds over individual picks unless you really know the sector. Yields around 3-5% are typical.

The Golden Oldie: Precious Metals

Gold and silver are classic inflation hedges and crisis shelters. How to actually invest? * **Physical:** American Eagle coins (1oz Gold Eagle ~$2000+, 1oz Silver Eagle ~$25+ over spot price) or bars from reputable dealers like JM Bullion or APMEX. You'll pay premiums over the metal's "spot" price and need secure storage. Feels solid, but selling can be slower. * **ETFs:** GLD (SPDR Gold Shares) or SLV (iShares Silver Trust) track spot prices. Easy to buy/sell, low expenses (~0.40%). No storage hassle. Gold doesn't produce income (no dividends), and its price can stagnate for years. Don't expect moonshots. It's for stability.

Owning Slices of Business: The Power of Equity

This is where wealth truly compounds long-term. But discipline is key.

The Boring Champion: Low-Cost Index Funds & ETFs

Warren Buffett pushes this for a reason. You own tiny pieces of hundreds/thousands of companies. Pros: Instant diversification, ultra-low fees, historically strong returns (S&P 500 averages ~10% annually long-term). Cons: Requires patience, market drops test nerves. Core holdings should be: * **VTI (Vanguard Total Stock Market ETF):** The whole US market. Expense ratio: 0.03%. * **VXUS (Vanguard Total International Stock ETF):** Global diversification. Expense ratio: 0.07%. * **BND (Vanguard Total Bond Market ETF):** For stability/income (add as you age). Expense ratio: 0.03%. Invest consistently, regardless of market noise. Dollar-cost averaging is your best friend. I auto-invest $500 monthly into VTI. Set it and forget it.

Dividend Growers: Reliable Cash Flow Machines

Companies with long streaks of increasing dividends are often financially strong. The cash in your pocket feels great. * **Schwab U.S. Dividend Equity ETF (SCHD):** Targets high-quality, sustainable dividend payers. Expense ratio: 0.06%. Yield ~3.5%. * **Individual Stocks (Do Your Homework!):** Think stalwarts like Johnson & Johnson (JNJ, 60+ years of dividend growth), Procter & Gamble (PG, over 65 years). But individual stocks carry more risk than funds. If Johnson & Johnson hits another lawsuit, your single stock takes the hit. Funds spread that risk.

Beyond the Usual: Underrated Good Things to Invest In

The best investments aren't always the most talked about.

Your Brain: Skills & Education

Increasing your earning power is the ultimate investment. That coding bootcamp ($10k-$20k) landing you a $20k salary bump? Massive ROI. Certifications, specialized training – these compound over a career. My friend doubled her salary in 5 years through targeted UX design courses. Hard to beat that return.

Small Business or Side Hustle

Using capital to start or scale a business you control. Could be buying equipment for a landscaping gig, inventory for an Etsy store, or software for freelance consulting. Risks are high, but so is potential reward. Requires serious sweat equity. Know your numbers cold.

Peer-to-Peer Lending & Crowdfunding

Platforms like LendingClub or Prosper let you lend money to individuals/small businesses for potentially higher returns than bonds (6-10%). Sites like Fundrise allow smaller real estate investments. But beware: * **Default Risk:** Borrowers can stop paying. Diversify across many loans ($25 minimums help spread risk). * **Illiquidity:** Your money is often locked up for 3-5 years. Treat this as a higher-risk satellite holding, not core. I allocated 5% of my portfolio here years ago; returns have been decent but volatile.

Choosing Your Mix: Building a Portfolio That Fits You

There's no single "best" investment. Your perfect mix depends on: * **Age:** Younger? Can generally handle more stocks/growth assets. Nearing retirement? Shift towards stability/income. * **Risk Tolerance:** Does market volatility make you panic-sell? Be honest. It kept me up nights early on. More bonds/cash. * **Goals:** Buying a house in 3 years? Saving for retirement in 30? Different assets for different timelines. * **Time:** Do you have hours to research stocks, or need a hands-off approach? Here’s a rough starting point for core portfolio allocation based on age:

Investor Stage	Approx. Age Range	Potential Core Allocation Focus	Key Considerations
Starting Out / Aggressive	20s - Early 30s	90% Stocks (Broad Index Funds/ETFs), 10% Bonds/Cash	Focus on growth, maximize time in market. Recovery time from downturns is long.
Building Wealth / Moderate	Mid 30s - 50s	60-80% Stocks, 20-40% Bonds + Alternatives (REITs)	Balancing growth with increasing stability needs. Start adding income streams.
Pre-Retirement / Conservative	50s - 60s	40-60% Stocks, 40-60% Bonds + Stable Income Assets	Capital preservation becomes crucial. Ensure sufficient cash/liquid assets.
Retirement Income Focused	65+	20-40% Stocks (Dividend Focused), 60-80% Bonds/Cash/Annuities	Prioritize reliable income streams and principal protection. Minimize sequence risk.

The golden rule? Diversification. Don't put all your eggs in one basket. Spread across different asset classes (stocks, bonds, real estate). This smooths the ride. When stocks tank, bonds often hold steadier or rise. Having that mix kept me sane during the 2020 plunge.

Action Steps: How to Actually Start Investing

Analysis paralysis is real. Break it down: 1. **Open the Right Account:** Choose a low-cost brokerage. * **Beginners/Hands-off:** Fidelity, Charles Schwab, Vanguard - all offer robust platforms, zero commissions on stocks/ETFs, and great customer service. Vanguard is my personal go-to for funds due to their rock-bottom fees. * **Fractional Shares/App Simplicity:** M1 Finance (great pie-based investing), Robinhood (easy interface, but scrutinize their order flow practices). Compare ACH transfer times, fees, and research tools. 2. **Define Your Budget:** How much can you invest *consistently* without affecting your emergency fund or essential bills? Start small if needed. $50/week is powerful with compounding. Automate it. 3. **Pick Your Core Investments:** Based on your chosen allocation (see table above), pick 1-3 broad funds to start. For most, VTI (Total US Stock) and BND (Total Bond) are a fantastic core. SCHD is good for dividend focus. Buy them. 4. **Schedule Regular Contributions:** Set up automatic transfers and investments from your checking account. Weekly, bi-weekly, monthly – whatever works. Consistency beats timing the market. Every. Single. Time. 5. **Review & Rebalance (Occasionally):** Once or twice a year, check your portfolio. If stocks soared and now make up 85% instead of your target 70%, sell some stocks and buy bonds to get back to 70/30. This forces you to "sell high, buy low." Don't overdo it.

My Personal Stumble: I tried stock picking early on. Read some articles, got excited, dumped money into a "hot" renewable energy company. Lost 40% in 6 months when the hype died. Switched to index funds and haven't looked back. Lesson? For most of us, simplicity wins. Focus on the boring, broad-market stuff for the core. Save speculative plays for tiny slices of "fun money" if you must.

Answering Your Burning Questions: Good Things to Invest In Q&A

Is real estate one of the good things to invest in with little money?

Direct ownership? Usually no (down payments, closing costs). But REITs (like VNQ) let you start with the price of a single share (~$80). Fractional shares on brokers like M1 Finance let you start with even less. Crowdfunding platforms (Fundrise) often have minimums around $500-$1000. So yes, you can access real estate without being a millionaire.

What are the best good things to invest in during high inflation?

Inflation erodes cash savings. Assets that tend to fare better: * **TIPS (Treasury Inflation-Protected Securities):** Bonds where the principal adjusts with CPI. Buy via ETFs like SCHP or individual TIPS. * **Real Assets:** Real estate (property values/rents often rise with inflation), commodities (gold, oil - via ETFs like GLD, USO). * **Stocks of Companies with Pricing Power:** Businesses that can easily raise prices (consumer staples, utilities, strong brands). Think companies like Procter & Gamble (PG) or Coca-Cola (KO). But it's not guaranteed.

Are bonds still good things to invest in when interest rates rise?

Short answer: Rising rates hurt *existing* bond prices. However, newly issued bonds pay higher yields. So: * Shorter-term bonds are less sensitive to rate hikes (hold to maturity). * Bond *funds* (like BND) will see price drops when rates rise sharply but will gradually increase their yields. It's a trade-off. Don't abandon bonds entirely; they provide crucial stability. Consider short-term bond funds (like VGSH) if rates are expected to keep climbing.

What good things to invest in for passive income?

* **Dividend Stocks/Funds:** SCHD, individual stalwarts like JNJ, PG. Provides quarterly cash payments. * **REITs:** Required to pay out most income as dividends (VNQ, O). Often monthly or quarterly payments. * **Bonds/Bond Funds (BND):** Regular interest payments. * **Peer-to-Peer Lending:** Monthly repayments (principal + interest). * **High-Yield Savings/CDs:** Interest deposited monthly/quarterly (safe, but lower returns). Aim for a mix; don't chase yield recklessly.

How do I know if something is a genuinely good investment or just hype?

Red flags: Promises of guaranteed high returns, pressure to "act now," complex strategies you don't understand, celebrity endorsements. Green flags: Long track record (decades), transparent fees, clear explanation of risks, alignment with your goals and risk tolerance, regulated platforms. If it sounds too good to be true (crypto doubling overnight promises?), it almost always is. Stick to fundamentals.

The Long Game: Patience, Consistency, and Avoiding Pitfalls

Finding truly good things to invest in is crucial, but execution matters more. Here's the reality check most gloss over: * **Time Horizon is Everything:** Money you need within 5 years doesn't belong in volatile stocks. Keep it safe (high-yield savings, CDs, short-term bonds). Retirement money has decades to ride out bumps. My biggest wins came from investments I ignored for 10+ years. * **Fees are Silent Killers:** A 1% annual fee might seem small, but over 30 years, it can eat 25%+ of your potential gains. Fight for low-cost funds (expense ratios under 0.20%, ideally under 0.10%). * **Emotions = Worst Advisor:** Fear makes you sell low. Greed makes you buy high. My crypto FOMO? Disaster. Create a plan *before* market chaos hits and stick to it. Automate investments to remove emotion. * **Taxes Take a Bite:** Understand capital gains taxes. Hold investments for over a year for lower long-term rates. Use tax-advantaged accounts (401k, IRA, HSA) whenever possible. Selling frequently for short-term gains? The taxman loves you (and takes more). * **"Set It and Forget It" Usually Wins:** Constant tinkering rarely beats a simple, diversified portfolio held long-term. Warren Buffett's famous bet that an S&P 500 index fund would beat hedge funds over 10 years? He won handily. Complexity isn't sophistication. Look. There's no magic bullet. The best investments are often the simplest, most boring ones held consistently over very long periods. Avoid get-rich-quick schemes. Focus on building a solid foundation, controlling fees, harnessing compounding, and staying the course through inevitable market storms. That's how real, lasting wealth is built – slowly, steadily, and sometimes a bit boringly. But hey, boring wealth beats exciting poverty any day. Start where you are, use the strategies here, and keep putting one financial foot in front of the other. You've got this.