Your Guide to an Alternative Investment Strategy for 2024

The number of investors and retirement savers seeking an alternative investment strategy is growing. The volatility of the stock market over the past few years has private investors, retirement planning firms, and investment brokerages exploring non-traditional alternatives to supplement their portfolios. Wall Street offerings are clearly not the only options savvy investors and retirement savers have to build wealth.

This article provides a deeper look into the growth of the alternative asset class, which is significant enough for you to consider. It’s important to learn about investment options you may not know exist for your personal investment portfolio and your retirement portfolio. All of the investments covered in this article are available to every investor—and also for self-directed IRAs and solo 401(k)s.

Why Consider an Alternative Investment Strategy?

In an economy that is uncertain, combined with a stock market that is particularly unreliable, smart investors look for creative ways to preserve retirement savings and personal investment portfolio income. Alternative investments provide an additional stream of earnings. When used in retirement plans, that income is tax-sheltered. Alternatives also create diversity that offsets market fluctuations. So, an alternative investment strategy is worthy of your consideration.

Interest in Alternatives Continues to Rise

The proof is in the data provided by industry experts.

Prequin specializes in global alternative asset management statistics. This private data collecting giant recently projected that by 2026 alternative assets under management will increase to $23T (up from $13.32tn at the end of 2021).

Additionally, the 2023 Trends in Investing Survey conducted by the Financial Image of an investor pointing to the numbers 2024 over investment models, developing his alternative investment strategy.Planning Association discusses the use of alternative investments by investment professionals. This survey’s results reflected that as of 2023, alternative investments in retirement plans are growing. Twenty-eight percent of survey participants indicated they were actively investing in or seeking alternative investments for their clients’ portfolios. Additionally, they reported that private equity leads as a favored asset, with 23 percent of their survey participants already investing in that sector. Per their survey, additional alternative investment favorites are real estate and private debt.

These options and more are permissible in self-directed IRAs and solo 401(k)s.

Self-Directed Retirement Plans Allow Alternative Assets

This shift towards alternative investments for mainstream financial and investment firms is not new to individuals who use self-directed IRAs and solo 401(k)s.

Self-directed investors already use an alternative investment strategy to create portfolio diversification. They understand the potential the of alternatives to perform better than traditional stocks, bonds, and mutual funds. They also enjoy the control they have—they choose their own investments and manage their own retirement funds.

Inclusion of alternative investments like real estate and private equity in conventional retirement plans remains relatively limited, even though it is evolving.

So, if you’re self-directing your retirement plan, congratulate yourself. You’re ahead of the game.

If you’re not self-directing your retirement plan. It’s time to consider taking control of your financial future. And there’s no better time to revamp your retirement planning strategy than the start of a brand-new year.

So, let’s take a look at a few alternative investment options for 2024.

Examples of Alternative Investments

Below is a short list of assets—and all of these are allowed in self-directed accounts. The only alternative investments the IRS does not allow in self-directed IRAs are collectibles and life insurance. Other than that, well…the world is your oyster.

As a self-directed IRA administrator, Advanta IRA does not sell investments or give advice. But we can tell you what’s available. You can decide which of these stock market alternatives best suits your alternative investment strategy in your IRA.

50+ Assets to Supplement Your Alternative Investment Strategy

These examples are for your personal investment portfolio and are also permissible in self-directed IRAs and solo 401(k)s.

And the opportunities don’t stop there. There is a wide pool of offerings you won’t find on Wall Street that encompass the alternative asset class. We suggest you do a bit of research on your own to discover additional possibilities that can potentially and significantly compliment your portfolio. Knowledge is power, after all. And once you discover the power an alternative investment strategy means for your financial future—we’re certain you can find an investment or two to add to your portfolio.

Resources on How to Implement Your IRA Alternative Investment Strategy

Free Self-Directed IRA Webinars

Advanta IRA Alternative Investing Advantage Podcast

Self-Directed Investing Case Studies and eBooks

SDIRA Video Library

If you’d like to speak with someone about how self-direction can help increase the wealth-building potential of your retirement portfolio, contact Advanta IRA today.

About Scott Maurer

Scott Maurer, Vice President of Sales for Advanta IRA, is a recognized expert in the field of self-directed IRAs. With a law degree from the University of Florida and as a designated Certified IRA Services Professional (CISP), Scott’s keen understanding of rules and regulations fuels his passion to educate others on the power of investing in alternative assets using self-directed IRAs. Scott is a frequent guest on retirement and investing webinars and podcasts, and he has shown thousands of individuals how to achieve financial freedom by teaching them how to use their retirement funds to invest in private placements, real estate, private lending, and more. Throughout his two decades in the industry, he has watched numerous unique investments unfold, giving him great perspective of what is possible when people take control of their retirement funds and investing decisions.