139: Optimizing Your Portfolio with Alternative Investments

Absolute Trust Talk

We’ve all heard the saying, “Don’t put all your eggs into one basket,” which rings true for building your portfolio. The ideal portfolio consists of more than stocks and bonds – it includes Alternative Investments, like real estate, drilling funds, and value adds. In this episode of Absolute Trust Counsel, certified financial planner Miguel Delgado joins us for a third installment of our financial planning discussion to take a deep dive into this invaluable topic. Together, we’ll discuss the benefits of Alternative Investments, the different types, how to qualify, and how you can get the most out of them. These strategies include qualified opportunity zones (QOZ), 1031 exchanges, and so much more. Don’t miss out - tune in now!

Time-stamped Show Notes:

0:00 Introduction

1:33 We’ve all heard the saying, “Don’t put all your eggs in one basket,” so to start us out, we’re discussing asset diversification and what it truly means.

2:51 Having a diverse mix of stocks and bonds can lessen your risk to an extent, but at the end of the day, they all belong to the same asset class. That’s why, in this segment, we explore Alternative Investments.

5:40 What makes alternative investments less volatile? They’re not affected by the same risks as publicly traded markets, like stocks and bonds.

8:37 Not everyone qualifies for Alternative Investments. Here’s what you need to know.

11:15 Why are Alternative Investments crucial for a portfolio? The number one reason is spreading out risk.

13:09 Press Play as we explore some Alternative Investments and their benefits, starting with drilling funds.

15:37 A Qualified Opportunity Zone (QOZ) investment allows you to defer taxes for an event where capital gain is triggered.

18:35 A QOZ investment and 1031 Exchange are similar but have key differences. Listen in for everything you need to know.

20:41 While QOZ investments and 1031 Exchanges can both be used on real estate assets, one could be preferred over the other, depending on the circumstance. Here’s why.

22:47 Thank you, Miguel, for sharing your incredible insights with us!