An alternative investment is an investment that is not one of the three traditional asset types (stocks, bonds, mutual funds). Most alternative investment assets are held by institutional investors or accredited, high-net-worth individuals because of their complex nature, limited regulations and relative lack of liquidity.
Alternative investments are favored mainly because their returns have a low correlation with those of standard asset classes. Because of this, many large institutional funds such as pensions and private endowments have begun to allocate a small portion of their portfolios to alternative investments.
At Wayne Messmer & Associates, the alternative investments usually fall under the income-producing portion of the products we offer. We serve as the bridge, allowing individual investors to invest alongside the big institutions like Harvard or Yale. These investments include but are not limited to equipment leasing, business development, and non-traded real estate investments trusts. We want to highlight “not limited to” because adapting to the constantly changing times and markets means we are constantly researching alternative investments and opportunities for our clients. In many cases, what you are investing in is a company’s ability to pay its’ bills rather than their ability to turn a profit. That is a powerful distinction particularly in the market we have experienced in recent years.
Like all investments, these are NOT suitable for everyone.
If you would like more information about alternative investment opportunities, call Wayne Messmer & Associates at 888-265-7443.