Are There Any Other Investment Options?

We’ve discussed several things an investor can do in a tough stock market – pull yourself together, take advantage of losses in your portfolio, and cut your fees. Lastly, we’ll discuss some alternative investment options that can minimize your losses or take advantage of an unstable market.

With markets falling many investors may have wondered “is this all there is?” No. Alternative investments are just that – alternatives. These are investments which are sold by specially licensed dealers in such markets as construction mortgage financing, land development, research and development loans, factoring and rental properties to name a few. Sound confusing? It can be. Not only should an investor go through a licensed alternatives dealer, but they should also make sure to have a sober second opinion on the products for sale. Remember, these dealers work on commission.

In order to make a sound purchase of an alternative investment, which can be a good addition to an established portfolio, the investor needs to have a good understanding of the unique risks and benefits of alternative investments. They offer a different approach to the overall market depending on the product. However, there are business and liquidity risks and restrictions that come with these products that the average investor may be unfamiliar with.

Alternative investments can be a unique and effective addition to a portfolio, however, they come with their own risks and restrictions. Using these in conjunction with an updated financial plan, good tax planning and reduced fees can be an effective way to turn your portfolio around, or at least minimize your losses. Speak to Stride Business Works about any of the above to start making progress on your portfolio!

Dale Hein, CA, CPA

Alex Hein, CFP