How This Startup is Making Alternative Investments More Accessible
The term “alternative investment” is enough to give many investors heart palpitations. For many, the words are synonymous with excessive risk. They invoke thoughts of newer, oft-unproven investing options.
But the truth is, alternative investing doesn’t have to be risky. Nor does it need to be scary. As long as an individual uses these options as part of a well-balanced portfolio, alternative investments can be a great way to grow wealth.
The issue that often arises, though, is figuring out how to access new or off-beat investment opportunities in the first place. That’s where Rocket Dollar comes into the picture.
How Rocket Dollar Is Opening the Doors to Alternative Investments
Rocket Dollar is an alternative investment platform that is simplifying the investment process. Its tools make investing straightforward and accessible.
The company’s goal is to put the power back into the hands of investors. Rather than restricting investment options to pre-set choices, the startup proudly empowers individuals to invest in the specific assets that they choose.
This doesn’t just apply to those who have a degree in finance. It also includes everyday individuals whose investing familiarity stops with traditional things like stocks and bonds. Rocket Dollar is designed to give anyone with an IRA a chance to tap into alternative investments that can supercharge their portfolios.
According to a nationwide study conducted by the company, younger investors, and especially Millennials, are blazing the trail when it comes to alternative investments. In fact, that generation is investing significantly more than all other age groups in nearly every type of alternative investing choice.
With a new wave of investors looking to expand their retirement options, it’s important for investment platforms to accommodate.
What Is an Alternative Investment?
The ability to diversify retirement savings is nice. But it begs the question. What is an alternative investment in the first place?
The term “alternative investment” doesn’t have a formal definition. Instead, it generally consists of any investment outside of the traditional option of stocks, bonds, and mutual funds. Harvard Business School lists seven common alternative investments, including:
- private equity;
- private debt;
- hedge funds;
- real estate;
- collectibles; and
- structured products.
Forbes adds investments like venture capital and managed futures into the mix. Rocket Dollar itself also includes cryptocurrency as a viable option.
There may not be a hard and fast definition. But there’s no doubt that there are many alternative investment options available. That’s why Rocket Dollar appeals to so many investors. It opens up possibilities that aren’t even on the table when stocks, bonds, and mutual funds are your only choices.
Investing in Your Own Deals
As already mentioned, for the team at Rocket Dollar, the primary objective isn’t to diversify investments. Nor is it to enable high-risk scenarios. The chief goal of the company is to put investors in the driver’s seat.
This is exemplified by the company’s BYOD or “bring your own deal” mindset. The alternative investment platform is so interested in empowering investors that it even allows them to invest in their own strategies.
All members need to do is bring their plans or idea to Rocket Dollar. From there, they will start the process of opening and funding a new account to invest in the venture. This unprecedented level of freedom truly lets individuals make their own decisions and guide their retirement in real-time.
Combining Diversity With Prudence
The ability to spread out a portfolio across a wide variety of investment options is appealing to many. However, there are some who have reservations about the amount of undue risk that this kind of investing can present.
It’s a legitimate concern. The company stresses the fact that alternative investments are a way to diversify, but they shouldn’t replace stocks and bonds.
Instead, investors should opt for a variety of assets. In addition, they should always take the time to perform due diligence with a new investment. They should study its strengths and weaknesses and get comfortable with different asset classes and how they function. They should also find providers they can trust and always track their portfolio’s performance over time.
Rocket Dollar Is Rewriting Investing Protocols
By applying the same caution and care used in traditional investing, you can turn alternative investments into a potent and effective part of a well-balanced portfolio — as long as you have access to them in the first place.
Rocket Dollar is making that access possible. From real estate to cryptocurrency, startups to commodities, the alternative investment platform is blazing a new trail for those attempting to accumulate retirement wealth on their own terms. It’s an empowering business model that resonates with an independent and forward-thinking generation of investors who are starting to think seriously about retirement in the decades ahead.