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How to Invest in ALTERNATIVE INVESTMENTS (ALTS)?

Client Centered

There are several ways to diversify a portfolio with ALTS. 

One could:

  • reduce the allocation to traditional stocks, bonds or mutual funds and move some percentage to ALTS.
  • invest cash directly into one or more alternative asset classes through an advisor specializing in ALTS.
  • roll a traditional or Roth IRA or a 401K plan into a Self-Directed IRA (SDIRA). Then invest in various ALT categories through the SDRIA.
  • invest in Private Equity funds, such as Delaware Statutory Trusts (DSTs), (see below)

Alternative Investing through DSTs

Delaware Statutory Trusts (DSTs) are an investment vehicle used most often by investors doing a 1031 exchange. However, this vehicle can also be useful to cash investors. In addition to the above, some additional benefits to Alternative cash investors could include:

  • Passive income from professionally managed real estate.
  • Effective Diversification by type, asset class and geography.
    Historically less correlated with, and less volatile, than financial markets.
  • Access to institutional quality real estate. 
  • Reduced minimum investment for accredited investors. 
  • Significant depreciation deduction to shelter income.

Contact Dieter Thurow at 707-431-8898 or Dieter@dthurow.com to learn more about Alternative Investment opportunities.