Imagine you usually put your money into assets like savings accounts, stocks, mutual funds or bonds. Consider them the salt and pepper of your pantry. They are well known, used often and present in most dishes. Alternative investments are your spices - paprika, cumin, coriander and more. They add to the complexity and flavor of your food. By understanding how and when to use these alternatives, you can elevate your portfolio and align your investments with your personal preferences. These investments are often used by higher net worth investors to potentially generate higher returns by capturing the illiquidity premium, the return you earn by holding an asset that is not highly liquid.

Because alternative investments have a lower correlation to traditional investments, adding them into a portfolio can temper against market volatility during periods of economic downturns. However, since they can be trickier to understand, you must work with an appropriate guide. Our team emphasizes education, transparency and ongoing monitoring of your assets.

We work with diverse real estate opportunities (multifamily, industrial spaces, data centers), delve into the oil & energy sector, and consider private equity and venture capital, to provide access to exclusive investment options not readily available to the general public.

Think about rolling a six sided die. You know that out of the universe of possibilities, rolling the dice can only lead to six defined possibilities, from one to six. A special type of investment, called a structured note, can also narrow the potential outcomes to a few predefined possibilities.

These structured notes are financial instruments that are created by combining elements of traditional bonds and derivatives. They are issued by financial institutions and offer investors a customizable way to potentially earn returns based on the performance of underlying assets, such as stocks or indices, and can include features such as downside protection, defined growth, accelerated upside and/or income.

Imagine you've just sold a property and made a profit. Normally, you'd have to pay taxes on that profit. But, if you use that money to buy another property that's as expensive, or more so, you won’t have to pay the taxes right away. This is a 1031 Exchange. Under Section 1031 of the United States IRS Code, a like-kind exchange or a tax-deferred exchange allows real estate investors to defer capital gains taxes when they sell a property and reinvest the proceeds into another property of equal or greater value.

Another option to reinvest your gain is a Delaware Statutory Trust (DST), a legal entity commonly used in real estate investment. DSTs are a type of trust structured under Delaware state law, that offers a way for multiple investors to collectively invest in and own income-generating real estate properties. Now, think of a Delaware Statutory Trust (DST) as several investors who pool their money to buy and own investment property, like apartment complexes or shopping centers. If you use the profit from the sale of your property to invest in a DST you can also delay paying taxes on your profit, thanks to the rules of the 1031 Exchange. This makes DSTs a popular choice for individuals looking to invest in real estate passively without immediately paying taxes on profits from sold properties.

If you own investment property, whether a rental home, office building, or strip mall, and want to better understand 1031 exchanges and DSTs, reach out to us.

Qualified Opportunity Zones (QOZs) are a special program that provide a helping hand for neighborhoods that need a boost. Investments in QOZs are used to improve areas, designated as Opportunity Zones by state governors, by stimulating development and economic growth through tax incentives directly to the investor. It's a way to encourage individuals to target their investment in areas that could really use the help. According to the IRS Code, QOZs are investment vehicles created as part of the Opportunity Zone program, which was established by the Tax Cuts and Jobs Act of 2017. These funds are designed to encourage long-term investment and economic development in economically distressed areas known as Opportunity Zones. The program provides tax incentives to investors who direct their capital into these designated zones.

Benefits of investing in opportunity zones:

Eligible gains, including capital gains and 1031 gains can be deferred until December 31, 2026.

If an investment in the QOZ Fund is held for at least 10 years, investors may exit the investment without paying any federal capital gains taxes on appreciation realized from the investment.

Small business owners have several retirement savings options to choose from to provide retirement benefits for themselves and their employees. Three common retirement plans for small business owners are the DB (Defined Benefit) plan, the SEP (Simplified Employee Pension) plan, and the 401(k) plan. Each of these plans has its own features, benefits, and considerations.