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Are Alternative Investments a Good Fit for You?
YES
NO
Do you like the idea of adding diversification to your portfolio while also increasing your potential returns?
You might want to find a different flowchart.
Are you planning on using this money for any big purchases in the next 3-5 years? (House? Wedding? Show pony?)
Do you already have an emergency fund?
How would you describe your risk tolerance?
Now is probably not the best time. Alternative investments like private credit and private equity can take a while to start earning a return, and if you need your money suddenly, they can take some time to cash out.
Alternatives can be riskier than public investments. They're probably not for you.
Can you commit to holding these investments for at least 5 years (ideally longer)?
Are you someone who likes to check your investment balance every day?
Do you mind only having access to your money every 3 months (or sometimes longer)?
Unlike stocks, alternatives aren’t traded daily, which means their values are assessed less frequently, and opportunities to withdraw your money are limited. Investors need to be comfortable with that.
Alternatives could be a great fit for you.
I wear sunscreen under fluorescent lighting.
Average to high
No. I prefer a peaceful life.
Yes. I am annoyed by the slightest delay.
