Non-Conventional Investments

After the 2008 crash, many financial advisors made a turn to alternative investments to offer their clients. Over the years, more products are offered at the Investment market as strategies for short and long term. Some years ago, the safest way to invest was shifting money to bonds to reduce risks, but now with critical low interest rates, this option is not very striking. The trend now is to have from 5 to 20% of a portfolio in different alternative investments for a better strategy mainly because every time, more products come to market.

Much has been said about non conventional investments as coins and art for example, but these alternatives are too risky to take them seriously so advisors tend to offer other safer and more real alternatives, for instance, real estate investments, multifamily leases of apartments, buildings, parking lots, warehouses, lodging, etc. This is a clear example of how an equity replacement can be compared to sharing profits with investors when a project is completed.  As you can see, non conventional investments are more openly accepted and its demand is continuously growing at a big pace. Just to mention a few benefits from non conventional investments:

• Reduced volatility and risk

• Greater returns (adjusted to risk)

• Heading against inflation or higher interest rates

• Diversification through low or non-correlated returns

• Protection and capital preservation

• Minimum investment

• Stable returns

Investors should previously consult a financial advisor to know what investments fit their needs and interests. It is important to have a strategy that includes a risk profile, if you plan to implement a non conventional investment strategy, you can always count on Thomson´s Multifamily Group to help you on your path to an investment lifestyle, we encourage you to sign up to our Investor Club now.