Alternative Investments 101: Options to Consider Today [2021]

A truly diversified investment portfolio should also include “alternative investments.” By definition, these represent financial assets which do not fall into either of these conventional asset classes.

→ Diversification → Higher Potential Expected Returns → Not Correlated with the Stock or Bond Markets → Tax Benefits

Pros of Alternative Investments

→ Risk of Loss → Unfamiliar Assets and Risks → Tax Disadvantages / Complexity → Some Alternative Investments Require a High Minimum Investment → Some Alternative Investments Options are for High Net Worth Individuals Only → Illiquid

Cons of Alternative Investments

1

Commercial real estate creates a steady income from rent and the property values typically appreciate in value over time.

Invest in Crowdsourced Real Estate

2

Over the past several decades, farmland has consistently yielded returns over 10%; after all, the primary use for the land is food, and people will always need to eat.

Invest in Farmland

3

A REIT is a real estate investment trust, which is technical jargon for a type of real estate investment company that owns and manages real estate on behalf of a group of investors looking to earn passive income.

Real Estate Investment Trusts (REITs)

4

“Blue-chip” refers to well-established art and artists with high aesthetic quality. Long-term, fine art has shown to be a reliable and lucrative investment. However, multi-million dollar artwork is typically only an investment available to the extremely wealthy. 

Invest in “Blue-Chip” Art Investment Company Masterworks

5

They require collateral, specifically cryptocurrency, to back all loans made on the platform.  This secured loan represents a lower risk than a non-secured loan, all things being equal.

Secured P2P Loans with MyConstant

6

Buying expensive wines may be one of your favorite activities, but did you know it could make you money? As a tangible asset, wine has a low correlation with global equities and has less long-term market volatility than other investments.

Invest in Fine Wine with Vinovest

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