Now more than ever, planning for your future is becoming a more and more collaborative process between you and a financial advisor. Understanding how your assets are distributed is a great way to maintain control of not only your financial security, but also your future. If you’re looking for new ways to expand your current portfolio, then you need to be talking to your financial advisor about alternative investments and how you can start profiting from them.
Alternative Investments That Will Grow Your Portfolio
To better understand what alternative investments are, it’s actually easier to understand what they’re not. “Traditional” investment assets can be classified as either stocks, bonds or cash. Any kind of investment options that are not one of those three can be considered alternative investments. Below are a few common alternative investments that you can talk to you financial advisor about looking into. It’s important to point out that because everyone’s financial portfolios are different, some of these options might be better suited for you than others. The more you can educate yourself about your own portfolio, the better suited you’ll be for the long term.
Natural Gas & Oil
Since natural gas is becoming more popular as a viable energy option, the industry has boomed exponentially and is now another billion dollar titan. While oil is still king in terms of overall use and value, both natural gas and oil are extremely viable as alternative investments. Natural gas in particular benefits from tax breaks and an ever increasing profit potential. Oil wells do have a higher buy in point, meaning it will take up a larger part of your portfolio. That being said, oil has been (and continues to be) one of the most impactful industries around the world.
Along similar lines, renewable energy is now growing in popularity. Solar and wind energy are more accessible than ever to homeowners, in the agriculture industry, and for commercial projects. Many people are drawn to it not only because of the growth potential, but also because it’s an environmentally conscious choice that provides long term sustainability for the planet.
Moving away from talking about energy, real estate is still one of the most popular alternative investments available around the country. This could be investing in a new development, a second home to rent out, or even a plot of land that you simply want to let sit until the value increases. Be aware that real estate is more hands on in terms of alternative investments, but there is a lot of upside.
Diversify Your Financial Portfolio’s Alternative Investments
Now that you have a better understanding of various alternative investments, you should be talking to your financial planner about how these different options can become part of your own financial portfolio. If you’re looking for the right financial partners, our team at Western International Securities puts in the extra effort to know each and every one of our clients. We can create the absolute best financial solution for your future.