Why You Should Invest in Alternative Assets
You work hard for your money. As you put it away, let it work for you. Your retirement money is precious; it’s your insurance for a good life after you leave your career behind. Our guest this past week understands the fears and the hopes that a retirement fund can hold. That’s why he started a company that allows you to make more money from your money in an accessible and affordable way.
On Season 6 episode 37 of the Making Bank podcast, Eric Satz sits down to chat about his finance company, Alto. At Alto, Eric and his team provide tools that improve financial literacy and resources for their clients. They match clients with potential alternative assets that align with their interests. In guiding clients through the world of alternative assets, they shed light on a previously unknown world. While it may seem scary and unknown, alternative assets, particularly long-term investments, are a great way to grow a retirement fund and reap the biggest benefits. So, whether you’re an entrepreneur or an employee, alternative assets should be harnessed by everyone.
Eric outlines why everyone should invest in alternative assets in the episode. Continue reading to see what those reasons are.
The first and most important reason to invest in alternative assets is diversification. Any finance person you talk to, book you read, or podcast you’ll listen to will stress the importance of a diverse portfolio. Some investments are riskier than others; some have larger payout. That’s why it’s imperative to build a nest egg in a variety of places, in case anything ever happens. Alternative assets are no different. While they can have great rewards, Eric understands the hesitation to have any sort of risk when it comes to retirement. That’s why he encourages any independent investor to consider using just a portion of their money to pursue alternative assets—it does not need to be a sizable commitment.
Another great reason to invest in alternative assets is that your retirement fund is long-term money, and that works to your advantage. With long-term money, you can choose to pursue long-term investments as well. In particular, he believes in illiquid investments. Eric puts forth that by investing with IRA dollars, it is tax advantaged. This includes reaping the benefits of compounding returns.
The great thing about alternative assets is that they’re…well, nontraditional. This could look like owning a share in a painting, a unique start-up, cryptocurrency and more. You can find assets that better align with your ethics, personal brand and more. You can ensure a more positive legacy by investing in assets that fulfill your personal values.
Many assets still get categorized as “alternative,” usually because they are less flashy—or flashier—than a typical stock. While there is nothing inherently wrong with these investments, they may have less of a track record than traditional options. A less in-depth track record does not necessarily mean they can’t be successful. In fact, the opposite can be true.
Many new assets, such as cryptocurrency, are placed under the guise of alternative asset due their modernity. However, investors could see larger rewards by being on the cutting edge of new trends.
If you’re interested in alternative investments, where should you start? You can begin by giving Eric and his team a call.
Eric started Alto to make a difference and disrupt a market. Many circles around investments are exclusive and inaccessible, even to the middle class. However, Eric believes that everyone deserves a chance to invest. There is no reason why anyone with a little nest egg shouldn’t be able to make that work for them. Unfortunately, current companies such as Fidelity and Schwab are intimidating to first time investor. Inspired by Turbo Tax, Eric created Alto.
At Alto, Eric and his team will provide you all the financial literary resources and tools to better understand how to make your money work for you. They will also allow you to bring your own deal to the table. Additionally, Eric eliminated unnecessary fees and restrictions that spend more of your money than you need to. When it comes to crypto exchanges, for example, Alto only charges 1%.
Investing can be nerve-wracking, especially with your retirement fund. As said, that money is a safety net for your later years—a safety net you want to be strong and stable.
Equipped with financial literary, the future doesn’t have to be so scary. Additionally, with portfolio diversification, you can also ensure that your retirement fund—and future—is less volatile. Through alternative assets, you can generate more revenue.
So, the question isn’t really, “why alternative assets?”
Rather, the question is: “why not?”