If you run a business with 401ks or other retirement funds, then you know how important it is to properly manage these portfolios. Especially if you have a pension or similar type of fund for your employees, knowing that you’re going to be able to offer them the right sorts of assets to be able to diversify their portfolios is crucial if you want to mitigate risk. After all, if an investor’s eggs are all in one basket that can spell disaster for their portfolio and their future, especially if things go south with the asset class they’ve chosen to go all-in on.
Market volatility is easily understood by looking at recent investment headlines surrounding GameStop traders, illustrating just why it’s so important to diversify your investments with alternative investing options. That being said, some people need to qualify as an accredited investor and meet certain net worth and income standards in order to take advantage of alternative investing. Even so, the idea of diversifying your portfolio by adding assets like real estate investments and other alternative investment options can make a big difference in keeping volatility to a minimum even when dealing with the stock market. Read on for a few concepts to keep in mind as you work to diversify your company’s portfolios and provide new investment opportunities to your employees for retirement and more.
Really analyze which alternative investments are right for you.
When it comes to analyzing different investment options, it’s important to note that each investment opportunity is different. Some portfolios have minimum investment amounts, while others don’t have minimum investments at all. As an employer, you need to do your due diligence and really take a hard look at which investment opportunities are a good fit for your company and your employees. Not every business needs to be able to invest in art or litigation finance; however, compared to most of the options on the stock market, real estate performs quite well, so perhaps investing in real estate can be a good way to diversify your portfolios while keeping risk at a minimum.
There are dozens of different platforms that let investors get into alternative investing even if they aren’t officially accredited investors. For example, the Yieldstreet platform has an easy-to-use interface that allows investors in the United States to access a broad array of investment options, such as real estate, fine art, marine finance, and more. If you’re wondering, “is YIeldstreet legit?” the answer is yes—and you can read more about their platform at their website.
Consider making cost-saving investments that allow you to match more of your employees’ contributions.
Beyond picking the right investment platform, sometimes one of the best ways to provide more for your employees with any reliability is to invest in your company. For example, if you match contributions to an employee’s IRA up to a certain limit, then increasing that IRA match—even to just an additional one or two percent—can be a major way to help them avoid losing money to management fees or other taxes when they withdraw from their accounts. For example, if your business is involved in refinery maintenance it might be worth looking into what’s offered by a company like APS Plasma. Their cold plasma tools can help oil and gas refineries better repair issues in their pipelines while saving money and working more efficiently in the process. When you consider the amount of time and money you save taking advantage of such technologies, it only makes sense to reinvest a bit of that money back into how you contribute to your employee’s retirement portfolios. You’ll boost both productivity and morale!