tax liens

10 Top Alternative Investments You Probably Have Never Heard of

 

10 Top Alternative Investments You Probably never heard of

 

“Curiosity about life in all of its aspects, I think, is still the secret of great creative people” – Leo Burnett

Most people are familiar with the stock market. There are TV stations which have the stock market and stock market related information on 24 hours every day. It is hard to escape it. When the stock market crashes, it makes the headlines in every newspaper, news station, and media outlet. When it reaches all time highs, it is on every magazine cover, even the shoeshine boys are talking about it. But what about other investments?

Huh? There are other investments?

Yes there are investments outside of the stock market. There is no rule that says you have to invest in the stock market, pitting yourself against the best and brightest investors in the world. Investors compound this problem by investing in areas that they are not experts in. Do you think that is a good idea?

Maybe there is a better way to invest…

Can You Invest Outside the Stock Market?

Peter Lynch famously said , “Invest in what you know.” While he was referring to stocks, the concept is sound. If you are an expert in technology then why not apply your knowledge and expertise into your investments. Invest in technology. Don’t invest in horses, or diamond mines. That would minimize your advantage with your investments. This does not mean you should not diversify your investments, rather it means you should take advantage of your particular skill set and expertise and ply it to your investments to make good choices.

While the stock market provides investors easy access to a wide variety of companies, it is somewhat limited to publicly traded companies. These companies cover a wide range of investments: technology, timberland, transportation,  real estate, commodities,  health care, etc. , but they are still stock shares in companies run by other people.

You could also invest in bonds of these companies. This is also an investment strategy many people and institutions use to invest their capital. It is a good strategy to use, but why stop there? What else can you invest in?

There is a whole world of investments outside the stock market that individuals and institutions invest in. There are no limits to these investments except for your creativity.

What are Alternative Investments?

The term alternative investments requires some explanation due to its lack of definition in popular media. The term alternative investments does not actually refer to any specific group of investments. It is only a descriptive term typically used to describe investments outside the stock market. This includes assets that are also available in the stock market, but available individually. The first investment on the list is a good example of that.

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8 Common Mistakes Using a Self Directed IRA

 

self directed IRA mistakes

I decided to write this post because over the years while working with clients, I have come across the same mistakes over and over again. Some of these mistakes are from a misinterpretation of the rules, some are through a lack of knowledge in certain areas, and the most common one being unaware of the capability to invest in alternative investments inside a self directed IRA. While most of the rules are easy to find, unfortunately they don’t all appear in one place. I wrote this post to help address these common mistakes using a self directed IRA.

What is a self directed IRA?

I want to define “self directed IRA” for people who are unaware of the definition. A self directed IRA is an account with preferential tax treatment, which is capable of investing in alternative investments. These alternative investments could be assets such as real estate, tax liens, private mortgages, gold & silver, horses, livestock, farmland, medical equipment, and more. While a self directed IRA can invest in traditional assets such as stock, bonds and mutual funds, it is typically used to invest in alternative investments. For further information about what a self directed IRA is, please read the following post about self-directed retirement accounts

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