Alternative Investments

Using Alternative Investments for Retirement Income in a 401(k) – Quiz!

Alice Wilson October 28, 2024

Discover how alternative assets can strengthen your 401(k) and potentially support steady retirement income.

 

A group of senior trekkers consulting a map, for "Using Alternative Investments for Retirement Income in a 401(k) - Quiz!"
You can use alternative assets in your 401(k) to potentially provide steady income during retirement

 

Why Consider Alternative Investments in Your 401(k)?

Alternative investments are becoming more and more important in retirement portfolios. Globally, over 25% of pension funds included them in 2019, up from just 5% in 1996.

By diversifying with alternatives like SBF notes, you can add growth potential and stability, as these assets are less linked to market swings, helping to cushion you against losses.

Plus, alternative investments also have the potential to give you much higher returns. That’s because alts can tap into different markets and opportunities that aren’t normally accessible through traditional investments like stocks and bonds.

 

Getting Started with Alternative Assets in Your 401(k)

To access alternatives, you’ll need a self-directed 401(k), which offers you broader asset options.

A balanced approach could include 60% in stocks and bonds, with 40% in alternatives like private equity or merchant cash advances.

Your mix depends on your risk tolerance and financial goals.

 

Tax Benefits for Greater Returns

With tax-deferred growth in your 401(k), alternative investments can let your investment grow without immediate tax deductions. This approach supports compounding growth, enhancing your portfolio over time.

 

If you add alternatives to your 401(k), you can diversify and potentially strengthen your retirement income strategy.

Do you want to know more about how to integrate alternative assets into your 401(k)?

Take our Interactive Quiz to learn more.

 

This information is being furnished solely for informational purposes. This material does not constitute an offer to buy or sell, or a solicitation of an offer to buy or sell, any security. This does not constitute and must not be construed as investment advice. Investing involves risk and possible loss of principal capital. Potential investors must rely upon their own examination of the merits and risks involved. Comments by viewers or third-party rankings and recognitions are no guarantee of future investment outcomes. Supervestor, LLC (“Supervestor”) has a reasonable belief that the content posted by a third-party does not contain untrue statements of material fact or misleading information. The opinions expressed herein are those of Supervestor and are subject to change without notice. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions, and may not necessarily come to pass. Certain statements included in these materials, including, without limitation, statements regarding investment objectives and strategies, and statements as to Supervestor’s beliefs, expectations or options may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to risks and uncertainties. Actual results and developments could be materially different from those expressed in or implied by such forward-looking statements. Charts are for illustrative purposes only and are not to be relied upon as investment advice. Unless it is explicitly identified otherwise all returns information presented herein is net of applicable fees and expenses.