WEBINAR 21: Investing in Alternative Assets with and IRA or 401k
Directed IRA Podcast
00:00
Investing in Alternatives Can Improve Portfolio Risk and Return
This is one of my favorite slides for whoever's dialing in. It's essentially just showing how alternatives can improve portfolio risk and return. So based on this chart, you can see that your average 60, 40 portfolio has almost 10% volatility and a healthy 8.4% annualized return. Well, if you took that down to about 30% alternatives and you took your equity allocation down to 30 and had fixed income at 40, so kind of an even split among the three classes, your volatility would basically be cut by around 3%. And I think there's no reason to think this trend won't continue for the next decade.
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