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Alternative investment options

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As Wall Street becomes more and more confusing, a lot of investors have looked at alternative investments. Alternative investments are considered to be any type of investment that is not traded on a well-known public exchange. In addition to using private capital for these investments, it is possible to invest in alternative investments within a 401(k) or IRA.
The following list of alternative investments are only some of the options available on the market. They can all be a good place to start if you’re looking for a place to put your money that isn’t the typical stock or bond fund.
Private Equity – This is any investment that is made in a privately held business or asset. The most common example of this is owning your own business or investing in a friend’s business. Profit is earned when the business pays dividends from its profits or the business is sold.
Private Debt – This is similar to private equity, but this term typically refers to loaning out money to a person or business without the involvement of a bank. This investment usually works by having the investor loan money with a legal contract in place to protect his or her investment. Profit is earned by from the interest paid on the loan by the borrower.
Gold – This investment has gained a lot of popularity in recent years, but it has been an alternative investment for centuries. Gold is typically viewed as a good hedge against inflation. Profit is earned if the investor is able to sell his or her gold for more than what they paid for it.
Domestic real estate – Buying, renting out, and/or selling local real estate has been a popular investment for many years. While it comes with some risk, it can also have one of the highest returns of any investment.
International real estate – While buying individual foreign property is an option, most people choose to invest in an international real estate fund.

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