What Are Alternative Investments?

Investing is a method that is used with the intent to help money grow by purchasing assets that are likely to increase in value over time. For instance, if you purchase stock, you are likely doing so with the hopes that the company you’ve invested in will grow such that your shares of stock increase in value. However, not all investment options are as straightforward as purchasing stock and watching its value change with the market’s ups and downs. The skilled professionals at Harvest Wealth Partners can guide you on using alternative investments as part of developing a plan that will help you work towards your financial goals. 

How Do Alternative Investments Differ From Conventional?

Stocks, bonds, and cash are all conventional investments that have relatively straightforward monetary values. However, these are not your only options when deciding how to attempt to grow your money’s value. Unlike conventional investments, the defining factor of alternative assets is that they are not as easily or directly able to be turned into cash, or are otherwise complex and not as well regulated. However, they can sometimes be used to diversify a portfolio.

As a category, “alternative investments” includes a fairly broad scope. If you are considering including these as part of your overall plan, a financial advisor may be able to help you understand the risks and potential rewards involved in investing in an alternative asset. 

Types of Alternative Investments

The types of investments that are considered alternative assets are diverse. At the same time, real estate is also considered an alternative investment.

Real estate, as an investment, most traditionally involves owning property that is projected to gain value over time. Flipping properties, purchasing properties to rent, and even improving your own home are all strategies that you can implement in hopes of helping your money grow. However, there are also real estate investment trusts that you can purchase stocks or bonds through as an indirect means of investing in real estate.

Why Invest?

The general intention behind investing is to purchase something and attempt to sell it later at a higher price. However, when choosing to invest, it’s important to understand the risks involved. Not all investments generate a profit, so there is value in consulting a professional for advice on managing the risks of investing. 

Financial Advising with Harvest Wealth Partners

Whether you have hopes for investing in alternative assets or taking more traditional routes, a financial advisor may be able to provide guidance for suitable ways to work towards your monetary goals. With services geared towards helping both individuals and businesses, our professionals are happy to work with you to develop a plan that is appropriate for your financial situation. Contact us today to learn more.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. Investing includes risks, including fluctuating prices and loss of principal.​ No strategy assures success or protects against loss.

Alternative investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor’s portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.

​Investments in real estate may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographical sector. Other risks can include, but are not limited to, declines in the value of real estate, potential illiquidity, risks related to general and economic conditions, stage of development, and defaults by borrower.​

Investing in Real Estate Investment Trusts (REITs) involves special risks such as potential illiquidity and may not be suitable for all investors. There is no assurance that the investment objectives of this program will be attained.