The world of investing is quite amusing. Many of us make investment decisions based on what we read or see on the news, what we’re advised by financial professionals, suggestions from friends and family, and at times, we rely on the hope that investment performance will yield the desirable returns we’re looking for. What’s more is that some of us are willing to risk our hard-earned cash without truly understanding what we are investing in — so long as our broker, or financial advisor says we’re making the right decision, we say, “Go for it”. It’s a gamble we take to expand the financial landscape of our lives. And when we take a loss, we are assured that it’s just part of the risk we have to take to grow our wealth. But what if we could offset that risk? What if there are other investment options out there that aren’t just traditional assets such as cash, bonds, and stocks? There actually are. They’re called ‘Alternative Investments’. And for many investors, it’s their secret to achieving higher returns.
Alternative investments are unregistered securities. They can include hedge funds, managed
futures, real estate ventures, commodities and derivatives contracts. Usually, people who invest in these types of investments are referred to as accredited investors — those who meet the net-worth guidelines outlined by the SEC (US Securities and Exchange Commision). To qualify as an accredited investor, an individual must have received an income greater than $200,000 ($300,000 combined if you’re including your spouse), or have an individual, or combined net worth that exceeds $1 million (this number remains the same if you include your spouse).
If you do meet one of the requirements, finding the right alternative investment could be great for your investment strategy and even help lower the overall risk of your investments. Even institutional investors understand the importance of adding alternative investments to their portfolios. Now, it’s not to say that you should put all of your savings into one particular investment (you definitely don’t want to do that), but you don’t want to limit your wealth potential to traditional investments either.
A lot of people are stuck with investment strategies that don’t really work for them, yet these traditional investments are all they know (or even feel comfortable with). And since alternative investments are unregistered securities, your broker will not be suggesting them to you — especially when their commission depends on selling you their employer’s products (even if it isn’t the best asset mix for your financial goals).
A growing number of people are realizing they don’t have the luxury of taking a loss, especially when it can directly affect their retirement. They are increasingly becoming dissatisfied with the direction and strategies they’ve received from their financial advisors. Investors, everywhere are looking for opportunities to propel their savings into a financial future they can actually live off of.
Does your financial advisor have your best interest in mind, or are you just another means of commission?
Here at Jakob Pek Fund, we offer an alternative investment in real estate. We don’t charge any fees to invest either. We offer a simple way to passively invest in real estate without the hassles of buying and flipping properties for profit, or for rental income. Our unique investment model combines low risk with high-yield returns. So, how does it work? Our accredited investors invest in a limited partnership. This capital allows us to issue private, real estate mortgages to qualified real estate investors. These mortgages are then paid off during the term of your investment (6 months — 3 years). And each limited partnership is secured by actual US real estate. Jakob Pek Fund is the primary lien holder on each property, minimizing risk for all of our investors.
Don’t be fooled by large financial institutions and sleazy marketing techniques. Do your own research and ask questions. Perhaps, something less traditional, could be just what your retirement strategy needs.
Are you an accredited investor? Get started here.
For more information on our current interest rates and minimum investment amount, click here.