Alternative Investments

Alternative Investment ideas and products should be viewed as a piece of your investment program. As an appropriate tool when needed. Some alternative investments may or may not be appropriate for all investors and should only be used after determining your comfort level of risk, investment timeframe, and liquidity needs.

 

Alternative Investments are usually:

  • Only open to Qualified Investors
  • Highly illiquid due to transfer restrictions or lack of secondary market
  • May or may not produce an immediate income stream
  • Be of a longer term, four to six  and up to 10 years in length before producing results

Market Linked Certificates Of Deposit (MLCD's)

  • Are sold by prospectus
  • Open to all investors based on the risk-return profile of the investor
  • Can be linked to individual stocks, indices, or baskets
  • When FDIC insured they do not risk principal if held to maturity up to applicable limits
  • Some MLCD's offer minimum returns at maturity even if underlying investment were to decline in value
  • Some risks include but are not limited to:
  1. Investors may recieve no interest or capital appreciation
  2. Investors may lose principal if they must sell prior to maturity
  3. Issuer may cap the product's return at a predetermined maximum percentage

 

Click on the link below for more information on Market Linked CD's

Market Linked Certificates of Deposit Brochure

 

 


Non-Traded Business Development Companies

Invest in America

  • Allows qualified investors to invest in private and publicly owned American companies.
  • Investments are made with the goal of generating income and, to a lesser extent, capital appreciation.
  • Could be used as a part of a broader fixed income portfolio of Bonds, REIT's, Annuities, Certificates of Deposit, and cash.
  • Sold by prospectus only and should be considered speculative and long term investments

Non-Traded Real Estate Investment Trust ("REIT")

A form of real estate investment method that is designed to reduce or eliminate tax while providing returns on real estate. A non-traded REIT does not trade on a securities exchange, and because of this it is quite illiquid for long periods of time.

 

Objectives:

  • Build a diversified portfolio of United States properties
  • Pay attractive cash distributions, generating a steady current return
  • Preserve, protect and grow long term value for shareholders

Characteristics: May provide

  • Portfolio diversification
  • Low correlations to fluctuations in day-to-day equity markets
  • a hedge against inflation
  • Income and Growth within a portfolio 

There is no assurance these objectives will be met

 

 

 

Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses.  They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested.