Alternative Investments

Real Estate Investment Trusts offer a way for smaller investors to buy into big real estate. If you dream of emulating Donald Trump but don’t have millions to invest in real estate, a Real Estate Investment Trust or REIT can provide some of the upside income potential with a much smaller investment.

There’s a new kind of defined retirement plan on the market, but you may have to ask your employer to add it to your current plan. In 2001, Congress passed the Economic Growth and Tax Relief Reconciliation Act (EGTRAA), which provided a variety of changes, adjustments and extensions to rules for retirement plans to be phased in during the ensuing 10 years. Among those provisions was the creation of the Roth 401(k), a hybrid that allowed contributions of after-tax dollars (like a Roth IRA) through salary deferral up to $15,000 (2006 limit) with a $5,000 catch-up allowed for people over age 50 (like a 401(k) plan.)

A well-diversified investment portfolio contains a mix of stocks, bonds, short-term cash investments, and savings accounts that is tailored to your investment goals and risk tolerance. If you want to diversify your investment portfolio further, you can look to other investment options. Here are a few of these options, with brief explanations of what they are, how they can be used, and what the risks and potential rewards may be.