Alternative Investments
Alternative investments are a unique category that includes but not limited to private equity placements, closed end mutual funds, real estate investment trusts (REITs), and preferred stocks.
These investments cover a wide range of sectors, such as real estate, data centers, and projects in renewable and clean energy, both in the U.S. and abroad. This diversity gives investors the opportunity to explore different economic areas and capitalize on unique growth prospects, which can help reduce risks. Adding alternative investments to a portfolio helps investors diversify their holdings, potentially boosting returns and lowering overall risk. These assets usually require longer investment periods and might not be as readily accessible as traditional investments, but they are known for their potential to significantly increase yields and grow in value over time.
They are the investments that do exceptionally well in years like 2022 when both the stock market and bond market both performed terribly.
Despite their sizeable allocation in all large $3m portfolios managed by major Wall Street firms like Blackrock, BNY Mellon, Morgan Stanley, and Goldman Sachs, alternative investments are often beyond the reach of clients with smaller portfolios, such as those with $300,000 at retail investment firms like Fidelity, Schwab, or Vanguard.
Saor uses AIX platforms to make these offerings accessible to middle income earners who want to get ahead with investments as low as $10,000. We never recommend more than 3% of total net worth into any given investment, thus making some of these offerings perfect for the portfolio that is a combination of a moderate brokerage account, medium sized IRA, and small Roth.