When markets get bumpy or traditional portfolios start to feel a little “same old, same old,” it’s natural to wonder what else is out there. That curiosity often leads to a buzzy but often misunderstood corner of the investment world known as alternative investments. But before jumping in, it’s important to understand what these are, who they’re for, and what to watch out for. While alternatives can add a new dimension to your portfolio, they’re not always the right fit for everyone.

At its core, an alternative investment is really anything that’s not a stock or a bond. That makes it a broad category by definition. We’re talking about things like private equity (owning pieces of private companies), private credit (lending directly to businesses), hedge funds (pooled investments that use more flexible strategies), and real assets like real estate, infrastructure, or commodities. Even farmland and timber can fall under this umbrella.

Keep reading this article on Retirement Searcher, Wade Pfau - Blog.