If you’re looking to diversify your retirement savings, consider investing in the future income of up-and-coming tech superstars and creatives. Companies like Upstart and Pave offer “human capital contracts” that allow you to invest in the future careers of others in exchange for a share of their future earnings. You put up the money early in their lives when they need it most, and hopefully you’ll get a return on your investment later in life, when you need it most.
Investing in human capital doesn’t come without risks, of course, and some critics say these type of contracts sound like indentured servitude. Still, this is an emerging way to diversify your investments and maybe make more than you would with the standard mix of stocks and bonds.
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