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What Is an “Alternative” Investment?

Diversification is not just a financial industry buzzword; it’s often an important part of just about anyone’s financial strategy.  A common form is a simple one: stocks, bonds, and cash.  But is that true diversification?  For some people, that may work just fine.  Others, though, may want to consider a little extra: something known as an “alternative investment.”

Whether these are suitable for an individual investor, though, depends on several factors.  So before you jump into anything non-traditional, it’s a good idea to know what you’re getting into and why.

On this week’s edition of Lucia Capital Group Weekly, you’ll learn from our “Professor” Rick Plum, CFP®, about who might consider alternative investments and why.  What’s the good and the bad?  Watch today’s installment and find out more!

Important Information:

Different types of investments and/or investment strategies involve varying levels of risk, and there can be no assurance that any specific investment or investment strategy (including the investments purchased and/or investment strategies devised by Lucia Capital Group (“LCG”)) will be either suitable or profitable for a client's or prospective client's portfolio, thus, investments may result in a loss of principal. Accordingly, no client or prospective client should assume that the presentation (or any component thereof) serves as the receipt of, or a substitute for, personalized advice from LCG or from any other investment professional.

You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy securities. Investment products described herein may not be offered for sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful or prohibited by the specific offering documentation.

Diversification strategies do not ensure a profit and cannot protect against losses in a declining market.

It is important to keep in mind that investments in fixed income products are subject to liquidity (or market) risk, interest rate risk (bonds ordinarily decline in price when interest rates rise and rise in price when interest rates fall), financial (or credit) risk, inflation (or purchasing power) risk and special tax liabilities. Interest may be subject to the alternative minimum tax. Treasury securities are backed by full faith and credit of the U. S. Government but are subject to inflation risk.

Rick Plum is a registered representative with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group, a separate entity from LPL Financial.

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