Chapter 8 - Alternative Investment Strategies

One’s investment portfolio need not be limited to only traditional securities such as stocks, bonds, funds, and other investment vehicles already referred to in this book.  A common criticism of the “traditional” investment portfolio is that overall returns, even over the long term, can be somewhat average.  Moreover, they may be vulnerable to several risks such as a poor economy, inflation, unfavorable currency valuations, and so on.  Most investment books and authors fail to provide their readers with alternative, “think outside the box”, investment products that can actually be far superior to those found in the mainstream investment arena.  Consider this chapter as a bonus to you.  Because you know that, in life, if you are just always following the crowd, your chances of getting ahead of the pack are usually slim.  Those who dare to question the status quo and take calculated risks are usually one step ahead of the others.  I am not telling you to pack your portfolio with alternative investment products.  But do consider some of the examples I will be describing to you shortly.  Each individual has his or her own knowledge, insight, and know-how with regard to what can become a successful or profitable endeavor.  So it’s up to you to find what works for you and what doesn’t.

Now it’s time to take a look at some fascinating investment alternatives.  Although the number of possible alternative investment products are only limited by one’s imagination, let’s examine some popular ones.  In no particular order, here are some interesting choices that can make investing even more exciting, while possibly increasing your wealth in the process:

1. Use Your Education
2. Start your own Business or Charitable Organization
3. Own Real Estate
4. Collect Collectibles
5. Invest in Water

1. Use Your Education

“The biggest mistake people make in life is not trying to make a living at doing what they most enjoy.”  – Malcolm Forbes, publisher of Forbes magazine

The best investment that you can ever make is to invest in yourself.  You are your most productive asset.  Keep in mind that if you decide to invest in higher education, there are financial incentives that can help you finance the endeavor.  In Chapter 1, I described the Lifelong Learning Plan (where Canadians can borrow funds from their RRSPs to invest for higher education).  Americans can also ease the financial burden of going to college by means of Student Loan Interest Deductions.  Whether you are just starting out in life or considering a career change, you need to consider these significant financial incentives. To invest in your education need not be restricted to going (or going back to) college or university; it simply means to better yourself by acquiring additional knowledge, skills, and abilities.  The means by which you do so is not what is most important.  You can learn by reading books, magazines, journals, newspapers, and by researching through oceans of information found on the Internet.  Spread your wings and find new subjects or topics of interest to expand your intellectual horizon.  Learn a new trade, profession, or language.  Learning a new language opens doors to opportunities that may not have existed before.  Today, with the Internet it is possible to go online, learn a new language, and network with people and prospective employers or partners around the globe.  Consider posting your resume online and even seeking employment abroad.  In short, make learning both an ongoing priority as well as a lifelong process.  There lies an infinite amount of potential in each individual human being.  You simply need to explore and see what’s in there.

2. Start your own Business or Charitable Organization

We often complain that our governments like to tax us like there is no tomorrow.  But one way in which both Canadian and American governments actually spend our tax dollars wisely is by providing a wealth of information, tools, and insights on how its citizens or residents can start their own businesses.  Is this possible?  Our tax dollars put to good use?  You bet.  In fact, this is one area, I must admit, where our governments actually do an outstanding job.  Give credit when credit is due, they say.

In North America, the three legal forms of business you can start are: a sole-proprietorship, a partnership, and a corporation.  There are other kinds of businesses that can be created, such as franchises, cooperatives, and so on, but we will leave them aside.  A sole-proprietorship is a business that has a single person who owns and operates it.  It’s quite simple and cheap to start a sole-proprietorship; all you need to do is go to your state or provincial business registry office, fill out an application form, and pay a small fee.  What is practical about a sole-proprietorship is that one can account for and report business-related income and expenses directly in one’s own individual income tax return.  It is not uncommon for business owners to experience a nil (or negative) amount of business income in the first few years of operations.  This is not all bad news, however, because you can still deduct business-related expenses in your income tax statement.  And when you incur a business loss for the year, the amount is usually deducted from your taxable income which, in turn, decreases the total amount of income tax you have to pay.  This is a tax break the government gives you in the hopes that sometime in the future your business will become profitable and they will be able to take their share of your profits.  There are all sorts of things that you can deduct as business expenses.  If you run a business out of your home, you may be able to deduct part of your house-related expenses (utilities, office furniture, etc.)  You may also be able to partly deduct expenses related to your automobile use (gas, repairs, maintenance, etc.) if you use it for your business.  Many other items such as computers, software, postage duties, and office supplies can be considered as business expenses.  Furthermore, money you spend on marketing and advertising can be deducted as well as professional services’ fees (accountants, lawyers, membership in a professional association, etc.)  For a full list of eligible expenses, please consult the links to your respective government’s website found in the link box further below. 

Once your business starts making a significant amount of income, you should consider starting a corporation in order to lessen a higher personal income tax burden.  It is more expensive and time consuming to start a corporation.  There are different types of corporations.  Here, you should seek the services of a competent accountant or lawyer who will help you structure and register your corporation, based on your needs and those of the business.  By the way, a corporation is a separate legal entity.  This means that the corporation and its affairs are separate and distinct from you.  In other words, should the corporation be sued or go bankrupt, you cannot personally be held liable nor can your personal assets be seized.  There are exceptions, but for the most part, this is usually the norm.

Finally, the last kind of business you can start is a partnership.  This simply means that you and one or more partners go into business together.  The important thing to remember here is that you should draft a Partnership Agreement which identifies who contributes what to the business, who can make decisions, what happens if there are disagreements between partners, etc.  The partnership agreement is a definite must; so make sure that you take the time to put things down clearly on paper before starting the partnership.

Starting a charitable organization can also be a good way to both deduct certain expenses while supporting a particular cause in the process.  Almost anyone can do so.  And personal monetary contributions or gifts that you (and your donors) make to a charitable organization are usually tax-deductible.  They can even significantly reduce your personal income tax burden.  The laws and rates differ between Canada and the United States but this idea is definitely worth looking into.  Plus, it will make you feel good about yourself as you will be helping others in a cause dear to your heart.

3. Own Real Estate

Real estate is perhaps the king of all investments.  I say this because real estate, for the most part, is an appreciating asset.  Its value appreciates regularly over the long term.  Some would even argue that real estate, in the long run, actually outperforms the stock market as a whole.  What’s even more important is that real estate such as a house, building, or land is something tangible.  Apart from reflecting the general state of the economy, real estate is not subject to risks that are commonly associated with intangibles such as stocks and other marketable securities.  Unless an unforeseen fire, natural disaster, or other uncontrollable event destroys it, the real estate investment will remain a physical and marketable commodity.

There are many advantages to owning both domestic and foreign real estate.  On the domestic front, if you are buying a home for yourself you can take advantage of certain breaks the government will offer you.  In Canada, first-time home buyers are allowed to remove funds from their RRSPs and use them as a down payment without penalty.  This is referred to as the Home Buyer’s Plan (as discussed in Chapter 1).  Individuals can contribute up to $20,000 from their RRSPs, and spouses or common-law partners may each do the same (for a maximum down payment of $40,000).  However, you must reimburse the amount borrowed from your RRSP within fifteen years.  The main advantage here is that you can decrease the total amount of money you need to borrow, thus paying less interest on your future mortgage payments.  At first glance this may not seem like much.  But depending on the interest rate and terms of the mortgage, it can actually save you the same amount of money as you borrowed from your RRSP for the down payment.  For Americans, Uncle Sam has asked his friends at the IRS to loosen its tax policies with regard to home ownership.  Americans may be eligible to deduct home mortgage interest payments on their income tax returns.  I have included some links in the box below so that you may find out more about the plan.

What’s more is that there is no capital gains tax on the sale of a home (primary residence only).  Furthermore, when you own a house you are in control of the investment.  In other words, you can make improvements to your home and land which can only further increase its value.  You reap what you sow.  Last but not least, you can also use the equity built in your mortgage to finance home improvements or even make other investments.  Generally, this means that you can borrow back roughly the equivalent of the principal you have already reimbursed to the bank.  For instance, suppose you’ve been making mortgage payments to the bank for the past ten years ($30,000 in principal, and $31,000 in interest), you can usually borrow back up to $30,000 at the same (or slightly higher) interest rate and use these funds to finance other investments or make renovations to your home.  If you had originally secured a low interest rate, it can be quite profitable to use the equity to invest in higher-yielding investments.  Such investments can include foreign land or property which I will discuss later.

Other investment strategies on the domestic front include buying cheap or distressed properties.  Often these properties are owned by banks because previous owners couldn’t keep up with mortgage payments.  Check the classified ads in newspapers.  Banks will often add a statement like “Sale due to foreclosure” to the classified ad.  You can usually buy these properties at a discount.  Many entrepreneurs buy these kinds of properties (or those that are simply run down), fix them up, and resell them at a profit.  Be forewarned however, as you’ll have to pay some capital gains on your profits. 

With regard to owning real estate, perhaps the most lucrative investment you can ever make, at least in my opinion, is to purchase foreign land or property.  I would even dare to venture that, of all investment products available out there, this particular one is by far the most profitable and safest investment you can ever make.  Think about it for a minute.  Look at the current residential real estate market in Canada and the United States.  What do you see?  Here is what I see.  I see a market that is fully matured and saturated.  According to RE/MAX (an international real estate company) the average price of a home in Canada in 2006 was C$276,824.  In the United States, the median home price averaged US$225,000 for the same year, according to the National Association of Retailers (NAR).  We are at the peak of the market, folks.  Remember the rule: “Buy low, sell high”?  Well, buying more property at these prices would be just darn foolish.  Moreover, you have to look at the demographic picture.  More specifically, look at the baby boomer segment of society.  In Canada and the United States, we are looking at about ten thousand people a day who are turning sixty years old.  Moreover, over seventy million North Americans are poised to retire within the next two decades.  These “on-the-brink-of-retirement” baby boomers belong to one of the wealthiest generations to have ever been born.  They want to pamper themselves and want to retire in a warm, sunny, and comfortable environment.  What’s that?  “Florida, California, Texas, or Arizona” you say?  Think again.  The price of residential real estate in these markets has gone through the roof.  And this is not to mention all the risks associated with hurricanes and other natural disasters that are known to wreak havoc in these particular regions.  In addition, the cost of home (and hurricane) insurance alone is enough to terrify and deter prospective buyers.  Moreover, global warming is contributing to increases in weather-related disasters, and the situation doesn’t seem to be improving.  The simple fact is that more and more Canadian and American retirees are selling their current homes, packing their bags, and heading for sunny destinations like Mexico, Belize, Panama, and Costa Rica as well as other countries like the Dominican Republic, the Bahamas, and Turks and Caicos.  The requirements for entry as residents in these countries are usually minimal.  Foreigners are allowed to own and build property in these regions.  And the going prices for land, condos, villas, and homes are a fraction of what they are back home.  Furthermore, the cost of living (including health care costs) is very low.  And the people are quite friendly and welcoming to retirees as well as their wads of cash of course!  Mix all these ingredients together and you have a recipe for a foreign real estate boom.  Due to the tremendous increase in demand for these foreign properties, prices are soaring.  Some regions like Costa Rica and the Dominican Republic are seeing the value of certain properties nearly doubling each year.  The trick is to find the right property in the right market at the right time.  You need not necessarily be a retiree to consider this type of investment.  In fact, it is the younger generation who should enter this market because it will likely be gobbled up in the next few decades as many baby boomers flock to these regions.  By then, it will be nearly too late, as property values will be much higher and less accessible.  What’s more is that if you buy a property now, it will not only have a chance to greatly increase in value but you can also rent it out for additional profit.  Condos, villas, houses, and even hotel suites can be rented for hundreds or thousands of dollars per week to tourists and vacationers.  Hotel suites represent a particularly interesting new breed of property investments.  In this case, the buyer purchases a hotel room or suite in a nice hotel and is allowed to rent it out to vacationing tourists for profit.  The hotel usually charges a modest management and maintenance fee (to book the room, clean it, etc.)  It is a better alternative to the traditional “time-share”, as you own 100% of it 100% of the time and you are more likely to rent it out on a regular basis since it is located in a resort setting.  Such resorts are really popular with tourists from all around the world who want to go down south for a week or two in an attractive “all-inclusive”.  This is a fascinating concept and an alluring investment opportunity.  So be on the lookout for this growing segment of the foreign real estate market. 

There are two important pieces of advice I need to tell you if you are considering buying a foreign property.  The first one is that you should get title insurance when buying any foreign property.  This type of insurance is absolutely essential because, should something go wrong with respect to the title of the property (e.g., another party other than the seller has a legal claim on the property), then you will get reimbursed by the title insurance company.  One very well known and reputable title insurance company is Stewart Title.  They are an American company with operations in many countries and have been in business for over one hundred years.  The next thing you should do is buy the property by creating a corporation and having it hold and own the property.  There are two significant benefits to owning the property through a corporation.  First, it will be owned by the corporation and not by you.  So if some party wants to sue you they will not be able to seize the property because you do not own it; it is owned by the corporation.  If you wish, you can also set up an offshore Property Owning Company (see Chapter 9 – The Offshore Advantage for more details) for extra protection.  The second advantage for the property investor lies in the fact that when you sell the property you can avoid having to pay Transfer Taxes that are usually associated with the sale of a property between a buyer and a seller.  All you need to do is sell and render the shares of your corporation to the buyer, thus avoiding any transfer taxes.  Transfer taxes can lie in the 4% to 5% range (or even higher in some countries).  Therefore you can save a lot of money.  Costs related to creating a corporation can typically amount to about US$500.  Yearly maintenance fees are similar.  So it’s not too expensive, given the benefits.  A final world of caution when buying foreign real estate is that, as with all your investments, you must do your homework.  This is even more important for this particular type of investment.  There are scammers and fraudsters out there so you need to be careful.  Take the time to carefully research the local market and the developer or owner of the property you are considering.  Ask for references and get in contact with other owners in the particular development or region you are looking at.  And never buy land or property you have not seen in person.  If you do your homework and get it right, you will never find a better investment.  I will leave you with some links on the subject below.

4. Collect Collectibles

Through the ages, human beings have collected all sorts of items.  People collect things for many different reasons.  Many collect items for their own personal pleasure or interest, with no intent of ever selling their collection; it’s the sentimental, aesthetic, or intrinsic value that is most dear to them.  Others prefer to find those hidden treasures and capitalize on their monetary value.  Whatever the intent of the collector may be, one thing is certain.  Collecting can be fun, exciting, and fruitful.  Today, thanks to the advancements in electronic communication, namely the Internet, online vendors and auction portals such as eBay enable collectors from all around the world to communicate with each other and swap collectibles.  While some are looking to rid themselves of “junk” found in the attic, others are searching for that pièce-de-résistance or hidden treasure.  Many collectors have found very fine collectibles at incredible prices on eBay and other online auction sites.  The trick is to educate yourself by doing a lot of research about what you are collecting and to know where to look.  eBay is an international auction portal that operates in over thirty countries around the world.  Take a look at what is available overseas.  It’s only a shipment away. 

There are some particular collectibles that are of interest to investors including:

a. Coins
b. Art & Antiques
c. Wine
d. Comics

Let’s examine the merits of collecting these particular items from an investment perspective.

a. Coins

Coins, and especially rare coins, can prove to be a very good investment.  The same can be said about gold and silver coins.  This is mostly due to the fact that, at the very least, they are worth their weight in gold (or silver) and, depending on the rarity of the coin itself, additional value can be added to the shiny asset.  Furthermore, coins represent a very practical investment because they are tangible assets that you can touch, hold, and store for safe-keeping.  Little maintenance is required on this portable investment.  And unlike traditional investments, coin ownership is a private matter.  Aside from their aesthetic value, gold and silver coins can provide an effective hedge against inflation and market swings.  Other advantages include the fact that they can provide long-term tax-deferred capital appreciation.  Coin dealers and collectors can actually swap coins on trading networks such as the Certified Coin Exchange (CCE) and Certified CoinNet.  And they can do so without incurring any capital gains taxes.  Depending on the rarity, quality or grade of the metal used, the date and country of issue, and the overall condition, coins can greatly appreciate in value, especially over the long term.  For instance, over the past thirty-five years investment grade rare U.S. coins have seen a 12.7% compounded annual rate of return.  Rare foreign coins can also prove to be a good investment.  It is still possible to find rare coins dating back to ancient Greece as well as the Roman Empire.  Savvy rare coin collectors, or numismatists as they are called, will know where to look for them and will ensure that the coins in their possession are authentic and in good condition.  Commemorative coins in particular have been known to be good investments.  If you are going to invest in coins, make sure you buy them from a reputable dealer, ask for a certificate of authenticity, and keep them in safe storage.  You can also consider holding this particular kind of asset offshore (see next chapter).

b. Art & Antiques

Perhaps, investing in art or antiques should be left to the knowledgeable and dauntless connoisseur.  Being really wealthy doesn’t hurt either.  Nonetheless, investing in works of art or antiques can be done by anyone willing and motivated enough to devote the time and energy to do so.  Such an undertaking will undoubtedly entail a certain level of risk and patience on the part of the investor or collector.  Art is perhaps one of the most difficult forms of alternative investments to consider.  This is the case because both costs and risks associated with this asset class can be quite high.  One must consider the time and devotion it takes to get acquainted with the intricacies of the art world.  Apart from a steep learning curve, another challenge when investing in art includes the high costs related to purchasing and owning this type of investment.  Art dealers or auction houses usually ask for fairly steep commissions, sometimes as high as 10%, to buy or sell art.  Other costs include transportation, maintenance or restoration, storage, and insurance.  Add the fact that art is not a terribly liquid asset and cannot easily be resold quickly at a decent profit.  In addition, taxes on the sale of art usually are calculated at the full rate.  Nevertheless, there are advantages to owning art or antiques.  According to Jianping Mei and Michael Moses, two professors at New York’s University Stern School of Business, art has outperformed bonds and treasury bills as far back as 1876.  In addition, they found that over the past ten years art has narrowly edged out stocks, returning 8.5% annually.  And contemporary art (anything since 1950) has returned 12.7% over the same period.  London-based Art Market Research’s Contemporary Art Index shows an 8.7% return over twenty-five years ending in 2005.  Of course all this depends on what pieces you should happen to own.  While you hold on to the art you can take advantage of tax-deferred capital appreciation.  There are also certain advantages to holding this particular type of asset class offshore (see next chapter).  The best way to limit your risk when investing in art is to acquire as much information about your particular area of interest and get in touch with knowledgeable experts in the field.  Be sure to seek top quality works of art from reputable and well-established dealers.  Consider obtaining the services of a professional appraiser who will be able to ascertain the quality, authenticity, rarity, and provenance of the piece in question.

c. Wine

Wine-investing is becoming popular.  There are three basic approaches to wine-investing.  You can either invest in a particular wine producer or vineyard by buying shares of its stock, invest in a wine-related fund, or you can buy the actual wine itself.  The latter method is not dissimilar to investing in commodities, since wine can be viewed as a commodity.  When commodities become rare or scarce and are in high demand, their prices tend to move up.  Obviously, you need to have some knowledge about the industry.  It is not easy to predict which particular wines will be in demand in the future (and who its potential consumers may be).  If you choose the right wines, buy them at the lowest possible price, and then sell them later once their value has increased, you can make some hefty profits.  Suppose you had invested $10,000 in a select vintage Bordeaux in 1975 and sold it nearly twenty years later in 1996; you would have realized a $215,000 profit.  It is pretty difficult for the average investor to know which fine and rare wines will be in demand in the future. 

The two other, perhaps less riskier, means by which you can invest in wine is to purchase shares of stock in publicly-traded companies involved in wine making.  Should you employ this particular strategy, be sure to buy when shares can be obtained at a bargain price, since wines tend to be linked to the health of the overall economy.  Buy low and sell high, as recommended earlier in Chapter 4. 

Finally, you can buy a wine-related fund such as the International Wine Investment Fund.  This particular fund has secured a total return of over 275% in the past decade alone.  Beware, however, as these types of funds usually require a substantial minimum investment.

d. Comics

Here I am not talking about stand-up comedians but rather comic books.  You know: the ones your father or grandfather bought and collected when they were young boys.   Back then those superhero comic books were both popular and quite cheap.  Back in 1938 DC Comics published its first issue about a fairly shapely guy with blue tights and a red cape.  They called him Superman.  The cover price of the issue in question was only ten cents.  Today, you could easily get $100,000 or more for that vintage issue.  On eBay alone you can find thousand of comic book items at any particular time.  Some traditional bricks-and-mortar stores also specialize in comic books.  So be sure to check the Yellow Pages and other online sources to help you find that rare Spiderman or Captain America comic book. 

5. Invest in Water

Without a doubt, water is the world’s most precious commodity.  It is essential for our survival.  And it is something we take for granted.  Just think about how dependent you are on water on a daily basis.  Without fresh water, human beings could not survive longer than a week.  Although about three quarters of our planet is composed of water, only about 1% of it is suitable for consumption; and some two-thirds of this amount is already polluted, according to experts at UNESCO.  About 98% of the world’s water is salt water, which is unsuitable for consumption due to its high level of salt.  So, fresh water is actually a scarce commodity.  According to the World Health Organization, 2.6 billion people, or 40% of the world’s inhabitants, do not even have the most basic sanitation, and more than one billion people drink unsafe water.  Moreover, sixty thousand children die each day from lack of water or by consuming dirty water.  This represents, by far, the largest health problem in the world.  Here are some interesting facts about water:

• Only 20% of the world’s population has running water.
• According to the World Bank, every year the amount of global water polluted equals the water consumed.
• About 500,000 tons of pollutants are poured into U.S. lakes and rivers each day.
• According to the World Water Council, the world’s population tripled in the twentieth century while water consumption increased six-fold.
• According to the United Nations, the consumption of water worldwide is doubling every two decades (twice the rate of population growth).  And by 2025, the U.N. estimates that 2.7 billion people will suffer from severe water shortages.
• Agriculture consumes 75% of the world’s fresh water.
• It takes 1,000 tons of water to produce one ton of grain.
• One orange needs fifty liters of water to ripen.

Supply and Demand

All commodities, including water, are largely driven by the laws of supply and demand.  As you can see from what has been discussed thus far, the supply side of fresh water is definitely going to be a big issue in the twenty-first century.  Although some would argue that water is a renewable resource (because of rainfall), many believe that the supply of fresh water is drying up.  This is not to mention the amount of acid rain that falls from the sky.  The simple fact is that demand for fresh water is largely outpacing supply.  As stated previously, the world’s population tripled in the last century, while water consumption increased six-fold.  This doesn’t represent a balanced ratio.  The problem is only going to get worse in the twenty-first century as 85 million people are born each year.  Moreover, the demand for water is growing steadily with the emergence of strong economies such as those in China and India.  The population of these two countries alone accounts for over 2.45 billion people, or 37% of the world’s inhabitants. The quality and availability of fresh water will be of great concern for these two rising superpowers.  The main problem is that drinkable water is becoming more polluted due to strong urbanization and the industrialization of rural areas in these countries.  Let’s face it: water is the oil of the twenty-first century. 

The Water Industry and Investment Plays

The water industry is wide and complex.  There are distinct segments operating in the water industry, and they can be divided as follows:

• Water Suppliers
• Water Technology
• Environmental Services
• Water Bottlers

Water suppliers are typically owned and run by all levels of government, although some are deciding to privatize the sector in order to make it more efficient and effective.  The companies or water utilities that operate in this segment mostly “provide” rather than “sell” water.  In other words, they have limited pricing power because water is seen as a “social good”, and governments will limit the profitability of such players.  Companies that focus on water treatment and water infrastructure projects are usually key partners with these water suppliers or utilities.  They can make for a better investment, should one be inclined to target specific companies in the industry.  Large companies that can design, build, and maintain water-processing facilities as well as recycling plants are also well-positioned players.  Wastewater management companies, as well as companies that build and lay pipelines, are other suitable bets.  Other good possibilities in the industry include companies that operate in the water technology segment.  They are basically involved in the purification or desalination of seawater.  Saudi Arabia’s supply of water, for instance, comes almost exclusively from suppliers using this technology.  Environmental services companies are mostly concerned with pollution-control issues surrounding water.  Finally, water bottlers actually package and sell the commodity to the public.  These are excellent bets, since they obtain the resource at a very low cost, while the masses dish out billions of dollars each year to buy bottled water.  That makes for a very successful business model.  And the few key players in the bottled-water industry are well positioned to maintain a stronghold in the market.

An excellent opportunity for the average investor who doesn’t want to pick individual stocks in the water industry can turn to water-related funds.  One such fund is the PowerShares Water Resource ETF.  This fund tracks the performance of water-related companies that make up the Palisades Water Index.  This fund is about as close as you can get to trading water as a commodity, since no trading platform currently exists to trade options or futures like oil.  Links to both the ETF and water-based indices are found in the link box below.

In brief, water is an alternative investment that cannot be ignored.  It is a precious, scarce, and vital commodity that we cannot live without.  Just as water keeps your body healthy and alive, it can also help to preserve the livelihood of your investment portfolio.

In conclusion, I have offered but a few suggestions regarding alternative investments.  Remember that alternative investments are only limited by the confines of your imagination.  Just be sure not to include too many of these in your investment portfolio.  At most, you should see no more than about 10% of alternative investments in your investment portfolio.

© Dan Fournier, 2007-2011