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Alternative investments are increasing in popularity as both individuals and institutions search for ways to change their volatility exposure and potentially generate surplus returns beyond traditional investments. From cattle to fishing rights, oil and gas investments to equipment leases, alternative investments can be a compelling choice for the right investor.
Alternative investors often prefer “hard” assets such as land, precious metals and other tangible items. Kingdom Trust enables you to hold a wide range of alternative assets and traditional investments via Self-Directed IRAs and other tax-advantaged and taxable accounts. Below are several reasons why alternative investing is surging in popularity.
Alternative investments offer an ideal way to diversify a portfolio because they tend to behave quite differently than typical stock and bond investments. Diversification remains a prevailing reason for investors moving investment funds into alternatives.
2. More Investment Options
The idea of new and innovative investment options has caught the interest of many consumers and with a Kingdom Trust account, investors can hold alternatives and traditional assets in a single account! Several assets not normally offered at traditional financial institutions include real estate, precious metals, private equity and even digital currency. With alternatives, your options are nearly endless!
3. High Potential Returns
While many alternative investments carry high risk profiles, they also tend to offer generous potential returns. However, with any investment, it’s important to conduct thorough research, ask questions about alternatives and consult with a financial advisor or team of professionals before investing.
4. Potential Shield Against Market Volatility
The stock market can be volatile, and many investors have chosen to not put their eggs in that basket alone. Investors want accounts backed by hard, real assets in most cases, to gain protection against the unthinkable. The traditional way of thinking about investing simply no longer applies to them.
5. Potential Shield Against Inflation
Many alternatives offer a long track record of gains during inflationary periods. It’s important for investors to understand the causes and effects of inflation so that their assets maintain their purchasing power. A diversified portfolio is the key to provide a measure of protection, regardless of what happens in the economy.
Unfortunately, most investment advisors and IRA administrators are either unaware of alternative investment possibilities or simply do not allow them in their narrow offerings. If you have questions about a potential alternative investment option in your Self-Directed IRA, contact Kingdom Trust today. While we are unable to give investment advice, we can let you know if an investment is feasible in your account type and if it is one Kingdom Trust can hold on its platform.