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Investment Management & Alternative Investments
Retirement can change the way you think about investing.
When you're building wealth, market growth may be the priority. As retirement approaches, the conversation often shifts to a different question:
How should my investments support the retirement I want?
At Wealth Watch Advisors, we help retirees and those approaching retirement build investment strategies around their goals, income needs, risk tolerance, and time horizon, including evaluating alternative investments when appropriate.
Alternative
Investments
1. Look Beyond Traditional Stocks and Bonds
Stocks and bonds can remain important parts of a diversified portfolio, but they aren’t the only options available.
Investments outside the stock market may include private credit, private equity, real estate, infrastructure, and other alternative strategies.
These investments can carry unique risks, fees, liquidity restrictions, and eligibility requirements, making careful evaluation important.
2. Understand Non-Correlated Investments
When different investments react differently to economic and market conditions, they may help broaden diversification.
Certain non-correlated investments seek returns that are less dependent on traditional stock-market movements.
That doesn’t mean they can’t lose money. It means their performance drivers may be different, something that can be valuable when building a diversified retirement portfolio.
3. Don't Confuse High Yield With Low Risk
High-yield investments can sound attractive, especially when retirement income is a priority.
But higher potential yield generally comes with additional risk.
Before investing, consider where the yield comes from, the possibility of loss, liquidity, fees, and how the investment fits into your overall retirement strategy.
4. Understand the Growing AI Investment Opportunity
Artificial intelligence is changing industries, and creating new investment opportunities.
Investing in artificial intelligence doesn’t necessarily mean investing in one AI company. AI-related investments may include semiconductors, data centers, infrastructure, software, energy, and companies adopting AI to improve productivity.
AI investing and AI investment strategies should still begin with the fundamentals: risk, diversification, valuation, and long-term objectives.
5. Build a Portfolio Around Your Retirement
The best investment isn’t simply the one with the highest potential return.
It’s the one that makes sense within your broader financial plan.
At Wealth Watch Advisors, we evaluate traditional and alternative investments together to help build diversified portfolios aligned with each client’s retirement goals.
Because investing in retirement isn’t about chasing what’s next. It’s about knowing why you own what you own.
FAQ
How do I know what investment manager I should use?
It’s important to find an investment manager that is first and foremost, trustworthy. Most people don’t realize, but outside of family and close friends, your investment manager should be your closest kept associate. Growing your money and actively pursuing your goals is something each Investment Advisor must strive for. Ultimately, a wrong choice can lead to major financial issues.
What’s a reasonable fee?
Fees can range from just under 1% to well over 4% depending on your investment advisor, your investment choice, and the backing firm. There is much to consider when assessing the cost of your investments. A big differentiator is fee vs. commission. Typically, you’ll see individuals with a series 6 or series 7 license charging commission on sales while series 65 licensed individuals charge a fee. Each licensee can do great work, but most of the time, a fee is more incentive to do better since the advisor gets paid more to grow your overall assets under management.
Aren’t alternatives risky?
There is a massive variety of alternatives, so to say yes or no is impossible. Rather, here’s what you should consider:
- Diversification
- Does this investment offer something you aren’t already getting exposure to?
- Goals
- Does this investment align with your goals for the future? Do the positives outweigh the negatives on your long-term plan?
- Features
- Does this investment offer any features that may aid in the gain? Some alternatives provide principle barriers that protect principle