What Are Alternative Investments? [The Simple Investor Guide]

One area that you should consider when investing is assets that fall into a category called, “alternative investments.” 

What Is An Alternative Investment? 

An alternative investment is any financial asset that does not fall into the standard or traditional investment categories, which include stocks, bonds, and cash. 

Pros of Alternative Investments

- More portfolio diversification - Helping hedge against inflation - Oher tax benefits not available in traditional investments

Cons of Alternative Investments

- Difficult to value what somethings are worth - Typically unregulated (if outside crowdfunding) - High-risk investments with no guarantee - Higher minimum investments required (If outside crowdfunding)

What Are The Main Types of Alternative Investments?

What you should know is that real estate is a great wealth building investment and part of the “alternative investing” crowd. Many people have built their wealth by buying and flipping properties, owning rental properties, or using AirBnb. 

Real Estate

What Are The Main Types of Alternative Investments?

Typically for wealthy individuals, there is an array of land options to consider: - Residential development land - Commercial development land - Farmland - Vineyards - Timberland - Mineral production land - Orchards

Land

Swipe up now for more  financial tips!