03/21/2024
The vast majority of financial advice is centered around traditional investments such as stocks, bonds, and REITs.
While those asset classes make up the foundation of a diversified portfolio, you should not overlook the power of alternative investments.
Simply put, alternative investments can allow you to earn higher returns (18-30%+ annually) while further diversifying your portfolio.
Let’s take a look at the returns of some traditional investments versus alternatives.
Traditional Investment Returns:
S&P 500 average ROI over 30 years, adjusted for inflation => 7.15%
Annual Residential Real Estate ROI (depending on the market) => 6%-11%
Annual Commercial Real Estate ROI (Cap Rate) => 3%-7%
Average Annual ROI for REIT => 8%-10%
Average Annual ROI for Celebrity Billionaire Real Estate Guru => 5%-8%, with a 1.5x Equity Multiple for a 7-10 year commitment.
All in all, you’re looking at about a 7% annual return.
Compare this with the returns of alternative investments
Our Indiana Hotel Portfolio Avg Annual ROI => 18% with a 2x Equity Multiple
Exuma Noire (Boutique Luxury Resort) Projected Annual ROI => 33.5% with a 2.75x Equity Multiple, conservatively, for a 6-7 year commitment.
If you remain conservative, alternatives provide a 20% annual return.
These are nice numbers to look at, but what is shocking is when you project out these returns over time.
If you invested $100,000 in traditional investments and let it grow at 7% per year, in 7 years you would have $160,578.15.
Not bad right?
But let's compare this to alternative investments.
If you invested $100,000 in alternative investments and assumed a return of 20% per year, in 7 years you’d have a whopping $358,318.08.
So, by investing in alternative investments instead of traditional investments, you could potentially have double the money in 7 years.
This shows the power of compound interest and picking the right vehicle to invest.
In summary, should you move all your money from traditional investments into alternative investments?
Probably not.
But, you should allocate a percentage of your portfolio to alternatives to take advantage of the high returns.
If you want to learn more about investing in alternatives and get access to our alternatives investments, click the link below to register for our FREE webinar on Monday, March 25th at 6pm Central (7pm Eastern).
👉 https://my.demio.com/ref/oFCyRiSkoHkKqroL
During the webinar, we’ll discuss how you can earn higher returns and diversify your portfolio through alternative investments.
See you there,
Jack Thomas,
Founder of Jetway Financial
This webinar is for Registered Investment Advisers & High Net Worth Individuals. We will show you the advantages of investing in alternatives so you can diversify your portfolio.