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11,000 more Canadians became millionaires in 2024 — here are 3 secret ways your neighbours are getting rich (and how to copy them)

Last year was an excellent time to be an investor. According to the annual World Wealth Report from Capgemini, 11,000 Canadians became millionaires in 2024 — surging 2.4% from 2023.

This increase was aided by a 18.5% gain in the Canadian S&P/TSX, its highest gain since 2021.

However, according to Kris Bitterly, head of Citi Global Wealth at Work, alternative investments are another important element contributing to this rapid wealth accumulation.

“Many investors, presently, when you look at their asset allocations, they’re significantly underweight on alternatives,” Bitterly told Bloomberg, noting that alternatives present “unique opportunities that are not available in public markets that you want to express in your portfolio.”

If you’re interested in exploring some options that are usually reserved for the ultra wealthy, here are a few alternative investments you can easily add to your portfolio today.

Low barrier to entry for real estate investments

Real estate is a well known driver of high-net-worth individuals’ wealth.

But it may not be easy to break into property investing if you’re not already wealthy. Many new homeowners can only access the market because their parents have provided the down payment. In fact, 31% of first-time home buyers received some form of financial support from family in 2024 — an increase from 20% just a decade ago, according to Fidelity.

If you’re considering real estate investing, but don’t have enough saved for the down payment quite yet — or you just don’t want the hassle of being a landlord or homeowner — there are some real estate investment options with a lower barrier to entry.

Real Estate Investment Trusts (REITs) are particularly appealing for investors looking to grow their wealth and portfolio since they offer exposure to real estate without owning or managing physical properties.

REITs pool funds from investors to buy and manage income-generating real estate, including residential, commercial and industrial buildings.

They’re particularly attractive for Canadian investors as they provide steady income through dividends, portfolio diversification and access to real estate’s growth potential.

Furthermore, REITs provide tax advantages as they must distribute 90% of their taxable income to shareholders in Canada. With interest rates decreasing and market trends stabilizing, 2025 is an ideal time to consider adding Canadian REITs to your investment portfolio.

Gold is your neighbour’s best-kept secret

While it might not be the trendiest investment, gold still holds value in a properly diversified portfolio.

Over the past five years, from January 2020 to January 2025, gold has delivered a substantial return on investment (ROI). On January 1, 2020, gold was priced at approximately $1,518.40 per ounce. By January 1, 2025, the price had risen to around $2,623.96 per ounce.

This indicates that physical gold appreciated by approximately 72.77% over the five-year period. This growth reflects gold’s role as a hedge against inflation and economic uncertainty, factors that have influenced its price trajectory during this time. As a result, hedge fund managers like Ray Dalio are bullish on gold for this reason.

The crypto rise continues

Once considered a fad, crypto is now dominating the alternative investment conversation, especially since the election of Donald Trump. In May, Bitcoin hit a record high, skyrocketing by 3% and surpassing a US$110,000 valuation for the first time ever.

Investors may trade cryptocurrency for a variety of reasons. Some see it as a store of value, like gold, whose returns may be uncorrelated to the stock market. Others see it as a currency, albeit one that is decentralized from any government or central bank.

It’s too early to tell exactly how cryptocurrency behaves as an asset class. What’s clear is that its short history and volatile price movements make trading cryptocurrency a largely speculative endeavour.

For those looking to enter into this space while sidestepping some of the inherent risks of owning and purchasing crypto, Bitcoin ETFs — and crypto ETFs, in general — offer Canadians a straightforward way to gain exposure to price fluctuations.

Traded on stock exchanges, these crypto ETFs allow individuals to buy and sell shares — as you would with traditional stocks. These crypto ETFs can be held in unregistered, cash accounts, as well as in tax-advantaged accounts like TFSAs or RRSPs.

Bitcoin ETFs make crypto investment easier by eliminating the need for private wallets and technical knowledge, while also simplifying asset security. With Canadian regulatory oversight, these ETFs come with protections designed to reduce risks.

For investors, Bitcoin and crypto ETFs in Canada also offer a potentially diversified approach to entering the crypto market. Some crypto ETFs incorporate a mix of digital assets, helping spread risk across multiple cryptocurrencies, which may reduce exposure to individual asset volatility.