You know that saving for retirement, education, and life’s big moments is more important than ever. If you’re considering making alternative investments a part of your savings plan, here are 8 great reasons you should get started today.
1. Follow the Path Less Traveled
Traditional investment portfolios contain a mix of stocks, bonds, and cash. With so many investors following this herd mentality, your investments may suffer from following the crowd. As the saying goes, “If you can’t spot the sucker in the room, it may be you.” With alternative investing you may be able to find opportunities that haven’t been trampled by the herd.
2. Do You Trust Wall Street?
Less than a decade has passed since the Wall Street big banks damaged the U.S. economy by inflating the housing bubble. Millions of Americans lost their savings and homes in the Great Recession that followed. Many investors are not willing to place their trust in these Wall Street banks by handing over their hard-earned savings.
3. Social Impact Investing
Investments in stocks and bonds benefit large publicly-traded corporations. By pursuing alternative investments, individual investors have the opportunity to make a social impact. Alternative investments allow you to put your money to work in support of environmentally-friendly ventures, social causes, or the military and veteran community as you can do with Veteran Business Bonds from StreetShares.
4. Support Small Businesses
If you care about job creation, economic opportunity, and vibrant communities, you care about small businesses. The Small Business Administration reports that small businesses account for two thirds of U.S. jobs created in the past 15 years [link: http://blog.streetshares.com/small-business-impact-on-the-u.s.-economy-how-business-funding-helps ]. Traditional investments have little impact on small businesses that are the engine of job creation. Alternative investments offer opportunities to support smaller businesses and provide funding that can be used to drive job creation.
5. Community Impact
Rather than investing in big corporations, alternative investing offers opportunities to invest in your community. That can mean real estate investments, backing small businesses in your community, or supporting a social group such as the military and veteran community with StreetShares.
6. Take a Hands-On Approach to Investing
Some investors prefer to keep their investments in “cruise control” with a traditional investment adviser they trust. But many investors prefer to take more of a hands-on approach with alternative investing. By taking an active role in managing your investments, you can understand how your savings are getting put to work, what the expected returns look like, and the impact of your investment on the world and on your community.
7. Avoid Expensive Investment Management Fees
When investors place their savings in the hands of a traditional investment adviser, they may find that these managed investing accounts come with high management fees that take a big bite out of returns. Many alternative investing options offer clear, transparent explanations about investing fees, and ways for you to reduce fees by doing more of the management yourself.
8. Harness Advances in Technology
Stocks and bonds are financial products that date from the 1700s and 1800s. While they have stood the test of time, many investors are looking for options that harness the technology and internet revolution of recent years. Some alternative investments use advances in automation and artificial intelligence, while others focus on the revolution in social networks such as peer-to-peer lending to build an online financial community.
At StreetShares, we’re dedicated to building a financial community for the military, veterans, and their supporters. Our 5% interest Veteran Business Bonds alternative investment allows the American public to join us in that effort. Currently, when you open a Veteran Business Bonds account and start investing, you can earn up to $1,000! Click here to learn more about Veteran Business Bonds.