Alternative Investments

Introduction

Alternative Investments can provide very attractive returns, but also generally carry a much higher level of risk. Accordingly, they are placed higher on the Intrinsic Value Wealth Creation Pyramid (TM). There are many different asset classes that are considered Alternative Investments. The following are some of the more common Alternative Investment asset classes:

Real Estate
Oil and Gas
Private Equity

Potential Benefits of Alternative Investments

May reduce the overall volatility of your investment portfolio
May provide greater investment returns
May provide greater diversification
May provide greater investment flexibility

Other Considerations

We think the investment programs offered by the following sponsors are worth a look for possible investment. We are not recommending any particular investment or sponsor. You must contact the sponsor directly and are responsible for conducting your own due diligence on these sponsors and their programs. Some of these sponsors offer investment programs which are considered private placements and are suitable only for Accredited Investors. Other programs will fall under different securities registrations and exemptions and will have varying suitability requirements. There will typically be higher fees that are charged by the Alternative Investment sponsors. Quite often, the sponsor will take a portion of the investment returns as a part of their compensation for managing the investments. Most, if not all, of these programs have a higher risk profile than investments that are lower on the Intrinsic Value Wealth Creation Pyramid (TM).

You must also carefully consider the appropriate asset allocation of your portfolio that is suitable for your own unique circumstances, including your tolerance for risk. While adding one or more of the Alternative Investment asset classes to your portfolio may reduce the overall risk of your portfolio, these investments may not be appropriate for you given your risk tolerance and asset allocation needs. Please see the Asset Allocation section of this book to help you determine an appropriate asset allocation for your particular needs and circumstances. Please remember that these asset allocation guidelines are only estimates of what may be appropriate for you. We cannot guarantee that the asset allocation determined by the asset allocation guidelines in this section of the book will be appropriate for you. You must make this determination on your own with the help of your financial advisor, accountant, attorney, and other advisors.

Please see these other Disclaimers by clicking the link.