3 Ways to Invest Like a Billionaire

We have all dreamed of becoming a billionaire at some point. Traveling to private islands on a mega yacht without a care in the world sounds ideal, to say the least. Although the odds of achieving billionaire status are on the slim side, that doesn’t mean you shouldn’t try to emulate their investing strategies.

And thanks to new technology, more and more exclusive investment opportunities have been opened up to everyday investors. 

Why not take advantage of them? All you need is a stable internet connection to start investing like a billionaire.

1. Invest in Blue-Chip Art 

You probably assumed that only billionaires could invest in works by icons like Andy Warhol and Pablo Picasso.

But with a new investing platform called Masterworks, you can invest in multimillion-dollar paintings just like the world’s richest, ie: Jeff Bezos, Bill Gates and Oprah Winfrey.

On average, contemporary art appreciated 14% annually from 1995-2020. That’s a lot better than the average returns of 9.5% you get from the S&P 500.

When you invest with Masterworks, you avoid all of the hassles of art investing—you don’t have to go to art auctions, and you won’t have to stress about finding a buyer if you want to cash out. 

NYC based Masterworks is already worth more than $1 billion and is the only investing platform of its kind. Early investors realized a 32% annualized return from a Banksy painting last year. However, the platform is available by invite only.

If you want to own historic art— and channel your inner Billionaire— You can request your invitation by clicking this link.

2. Start a Roth IRA 

Roth IRAs are an essential tool for growing your wealth. Peter Thiel, the tech billionaire, has $5B in his Roth IRA. And there is a good reason for that.  When you decide to dip into your Roth IRA funds, withdrawals are tax-free if you reach a certain age. If you’re retired and you need $40,000 for a new car, a possible way to avoid debt would be to use cash from your retirement account. 

Withdrawing from a traditional IRA requires you to pay income taxes on the entire amount, which wouldn’t be as ideal.  

For example, you paid the $700 in taxes on that $6,000 and put it in a Roth IRA instead. Then assume you invest that sum for 40 years and earn an average 6% return. By age 65, you’d have turned that $6,000 into nearly $62,000, all of which could be withdrawn tax-free.

There are lots of different online brokerages that let you open Roth IRAs in just a few clicks. Putting that money away for a rainy day in retirement goes a long way down the road. 

3. Get a Financial Planner

Did you know that 68% of billionaires are actually self made? They didn’t start out as financial experts! 

Like any long-term goal, the first step to becoming a billionaire is to make a plan — ideally with the help of a financial expert. Most, if not all, billionaires have a trusted financial planner to help them manage their money.

If you want, you can start your planning online.

Once you come up with a plan, you can chart out your path to achieving financial freedom with an advisor. After all, it's hard to get to your final destination without knowing how to get there. 

Taking the time to review your finances with an expert can help tremendously.

Invest Like the 1%

Many of the wealthiest and most successful investors allocate a significant portion of their portfolios to alternative investments. These investments are typically tied to tangible assets that have low correlation with the stock market. While alternative investments have historically been out of reach to retail investors, new regulations and advances in technology are making these opportunities available to virtually anyone.

Check out Benzinga's list of the top alternative investment platforms that allow you to invest like the 1%.

*See important disclosures