Should Millennials Invest in Alternatives to the Stock Market?

By Brendan Hughes0 Comments
Investment decisions at any age are made based on a multitude of factors and people should consult with financial professionals before moving forward with any decision. But with the proliferation of investment strategies and asset types, how seriously should a young person, such as a millennial, consider investing in an alternative to the stock market?

Financial professionals in a CNNMoney article discussed the pros and cons of investing in alternatives based on a question from a 25 year-old from Michigan. In the article Should real estate be part of my retirement plan? several professionals detail the potential benefits and drawbacks for a younger investor.

Important considerations for investing in an alternative such as real estate include: previous knowledge of real estate, encountering surprise expenses, time and work commitment, and having exit strategies. The diversification of real estate from the stock market is cited as a potential benefit.

When investing for the future, retirement plans such as Traditional and Roth IRAs offer tax-advantages and may hold a variety of asset types beyond just the market. Specialized custodians, such as Equity Trust Company, will custody assets such as real estate, private debt, precious metals, and they benefit from the same tax-advantages as a stock or bond in an IRA.

To get more information on alternative investments in an IRA, set up a free consultation with a Senior Account Executive.