Alternative Investments

  1. Introduction
  2. Securities Markets
  3. Brokers and Dealers
  4. Economic Factors
  5. Stocks and Shareholder's Rights
  6. Options
  7. Investment Products
  8. Alternative Investments
  9. Risk of Investing
  10. Trading Types and Accounts
  11. Rules of SEC and FINRA
  12. Prohibited Activities

Limited Partnerships

Limited vs. General Partnerships

A limited partnership is a type of business structure in which there are two types of partners, general partners who manage the business and limited partners who are passive investors. Limited partnerships are taxed as pass-through entities, meaning that profits and losses are passed through to the partners for taxation purposes. Hedge funds are often structured as limited partnerships.

Limited Partnerships

Real Estate Investment Trusts

Real Estate Investment Trusts (REITs)

REITs are investment vehicles that allow individuals to invest in real estate without owning physical property. REITs may provide benefits such as portfolio diversification, taxation advantages, and potential distributions/dividends. There are several types of REITs, including publicly traded, non-traded, and private REITs.

Publicly Traded REITs Non-Traded REITs Private REITs

Overall, REITs can be a valuable addition to a well-diversified investment portfolio, but investors should carefully consider the risks, fees, and investment objectives of each REIT before investing.

Exchange Traded Funds

Exchange Traded Funds (ETFs)

ETFs are investment funds that are traded on an exchange like a stock. They offer benefits such as liquidity, portfolio transparency, and targeted portfolios, but may also have disadvantages such as trading fees and potential tracking errors. There are several types of ETFs, including leveraged and inverse ETFs.

There are several types of exchange-traded funds (ETFs), which can be categorized based on various factors, including investment objective, asset class, and investment strategy. Here are some of the most common types of ETFs:

Broad Market ETFs Sector ETFs Commodity ETFs International ETDs Bond ETFs Currency ETFs Leveraged and Inverse ETFs

Overall, REITs can be a valuable addition to a well-diversified investment portfolio, but investors should carefully consider the risks, fees, and investment objectives of each REIT before investing.

Exchange Traded Notes

Exchange Traded Notes

Exchange-traded notes (ETNs) are unsecured debt securities that are traded on an exchange like a stock. Similar to exchange-traded funds (ETFs), ETNs provide investors with exposure to the performance of an underlying index, asset, or strategy, but their structure is quite different. When an investor buys an ETN, they are essentially buying a debt obligation from the issuer, who promises to pay a return based on the performance of the underlying asset or index. At maturity, the investor receives a cash payment from the issuer, which may be greater or less than the original investment depending on the performance of the underlying asset.

ETNs can provide investors with access to a wide range of markets and asset classes, including equities, commodities, currencies, and fixed income. They can be a useful tool for investors looking to diversify their portfolios and gain exposure to non-traditional assets or strategies. However, like any investment, ETNs carry risks, including credit risk (the risk that the issuer may default on the obligation), market risk (the risk that the value of the underlying asset may decline), and price volatility (the risk of large price swings). Investors should carefully evaluate the risks and benefits of ETNs before investing.

There are different types of Exchange Traded Notes (ETNs), which are financial instruments that track the performance of an underlying index, asset or strategy. Here are some common types of ETNs:

Market ETNs Commodity ETNs Currency ETNs Strategy ETNs Leveraged ETNs Inverse ETNs

Fixed and Variable Annuities

Fixed Annuities & Variable Annuities:

Fixed annuities and variable annuities are types of insurance contracts that are designed to provide a regular stream of income during retirement. The key difference between the two is in how the premiums are invested and the payout amounts are determined.

Fixed annuities are contracts where the premiums paid by the investor are invested in conservative, low-risk securities, such as government bonds. The interest rate paid on the annuity is typically guaranteed for a certain period, and the payouts are determined by the performance of the investments made by the insurance company. Surrender charges may apply if the investor wants to withdraw funds before the end of the contract term.

Variable annuities, on the other hand, allow investors to choose from a variety of investment options, including stocks, bonds, and mutual funds. The payout amount is determined by the performance of the investments, which can fluctuate with market conditions. Variable annuities also typically include a death benefit, which guarantees that a certain amount will be paid to the investor's beneficiaries upon their death.

When comparing annuities to life insurance, the key difference is in the payout structure. Life insurance pays out a lump sum to beneficiaries upon the death of the policyholder, while annuities provide regular payments during the policyholder's lifetime.

The annuity payout structure can be set up in several ways. A single life annuity pays out income to the policyholder for their lifetime only, while a joint life annuity can pay out to the policyholder and a spouse for their lifetimes. Annuities can also be structured to include a period certain, which guarantees a minimum payout period regardless of the policyholder's lifespan.

It is important to carefully consider the surrender charges associated with annuities, as they can be significant if the policyholder needs to withdraw funds before the end of the contract term. Additionally, variable annuities can carry higher fees and expenses compared to fixed annuities, due to the investment options and guarantees provided.

Fixed Annuities Variable Annuities

Welcome to your Alternative Investments