Smart Money Insights | Issue #9
Your weekly guide to mastering traditional and alternative investments. We transform complex financial concepts into actionable strategies for both new and experienced investors.
Issue #9 | Your Guide to Smarter Investing | April 2025
“How can I start investing in alternatives if I don’t have accredited investor status?”
This week, we’re exploring how retail investors can access alternative investments that were previously reserved for the ultra-wealthy or institutional investors.
The Access Revolution
Alternative investments — assets beyond traditional stocks and bonds — have historically been the playground of the elite. Minimum investments of $250,000 or more and accredited investor requirements kept most investors on the sidelines.
But a wave of financial innovation is democratizing access to these diversifying assets.
Three Pathways to Alternative Investing
- The New Marketplaces Alternative investment platforms have dramatically lowered minimums for assets like fine art, collectibles, farmland, and private credit. Companies like Masterworks (art), FarmTogether (farmland), and Yieldstreet (private credit) offer entry points as low as $500-$10,000. These platforms handle the complexity of sourcing, due diligence, and management while providing the liquidity mechanisms that traditional alternatives often lack.
- The Public Alternative Many alternative strategies are now available through publicly traded securities. Interval funds offer exposure to private credit, business development companies (BDCs) provide access to private equity-style investments, and specialized REITs focus on niche real estate sectors. These vehicles combine alternative exposure with the transparency and liquidity of public markets, though they may have higher correlation to stock markets during periods of stress.
- The ETF Evolution Exchange-traded funds increasingly offer exposure to alternative strategies previously available only through hedge funds or private partnerships. Managed futures, long-short equity, option-writing strategies, and commodity funds are now accessible with a single trade. The best of these funds capture the essence of alternative strategies while offering daily liquidity and lower fees than traditional hedge funds.
Today’s Action Steps
- Review your portfolio to identify where additional diversification would be most beneficial.
- Research one alternative investment platform or product that aligns with your investment goals and risk tolerance.
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