"You can lead a horse to water, but you can't make it drink."
At the end of the day, people are responsible for the decisions they make. Whether it's related to relationships, careers, or investing, all the best advice in the world means nothing if people aren't ready or willing to act on it.
Here are some examples of advice that you've probably taken:
- Invest early and often
- Make the most of your 401(k)
Most people have heard this advice before and most have likely followed it, and are even glad they did.
Unfortunately, there's good investment advice that some people are hesitant to follow: Add alternative investments to your portfolio.
Maybe it's because they don't know the meaning of alternative investments. Maybe their financial adviser isn't a fan of alternative investments. Or maybe they just don't know where to start.
Fear not, intrepid investors, here are a few ideas about alternative investments designed to help you understand what they are, where to start, and how to connect with an adviser who can help you.
Idea: Alternative Investments = True Diversification
When most people think about diversification, they think about adding international stocks to their portfolio of stocks and bonds.
But true diversification means adding alternative investments in the form of non-correlated investments, which include those that are not impacted by the ups and downs of the stock market.
These alternatives can include life settlements, real estate, and commodities.
Adding these investments to your portfolio allows you to truly diversify – and protect yourself against the next stock market crash.
Idea: Alternatives Don't Have to Be Risky
It's a natural reaction. People tend to get a little hesitant to try anything that is called an "alternative." After all, there's a reason something becomes "the norm." Usually it's because the norm works, is time-tested, and people are comfortable with it.
People tend to think of alternatives as risky, but when it comes to investments, that couldn't be further from the truth.
Alternative investments have been paying dividends for decades. Think about all the people who have retired wealthy thanks to real estate investments, which is a well-regulated option. Or consider life settlements, which is a relatively young market but highly regulated by the government.
Both real estate and life settlements tend to beat the stock market. Life settlements, for example, typically deliver double-digit returns; and neither includes the risks associated with the stock market.
Idea: Hoping Isn't a Strategy
Elon Musk, the entrepreneur behind PayPal, once said that embracing change is necessary – especially when the alternative is disaster.
Many investors would rather keep their fingers crossed and hope that their nest eggs survive the next stock market crash rather than change their strategy to protect themselves.
Unfortunately, hoping for the best isn't a smart strategy - a smart strategy is to crash-proof your portfolio by adding a solid mix of alternative investments to your portfolio.
It's not all that difficult to do - all you need is the will and a financial adviser who understands the alternative investment market. Together you can devise a strategy that is within your comfort zone, identify the right alternative investments for your whole life insurance, life settlements, gold, real estate, short-term loans, etc. and take action.
Then, the next time the market takes a tumble, you won't be sitting there with your fingers crossed, hoping things work out.
Take a Drink Today
If you are ready to drink from the fountain of good advice and enjoy the prosperity that alternative investments provide, connect with us today.
You'll be glad you did.