Alternative Investments – Are They Just for the Wealthy?

We hear a lot these days about alternative investments. Wall Street firms regularly tout their expertise in these investments and try to convince us we need them in our portfolio.

Initially, alternative investments were only available to what most would consider the wealthy.

The SEC set the definition of the wealthy with their accredited investor definition. To be eligible to invest in these alternative investments, one has to have an income of at least $200,000 (individual) or $300,000 (joint) for the last two years. Additionally, the rule states the investor expects income to continue going forward.

If the income requirement is not met, accredited investors must have a net worth of at least $1,000,000 (exclusive of personal residence). Though that group is growing, it leaves out millions of people who could benefit from the diversification offered by this asset class.

One common theme in the early days of these investments was high fees. In the beginning, managers charged investors 2% of the amount invested plus 20% of profits.

So here’s what that means.

Bargain Shopping While Traveling Abroad

Who doesn’t love a good souvenir? And who hates spending an arm and a leg on purchasing said souvenir?

Bargain shopping while abroad can be one of the most enjoyable and satisfying things you do during your travels. Why? Because although you are abroad, you still want to feel like you’re getting an absolute bargain for where you physically are.

Plus, who doesn’t love a challenge?

I can’t tell you the number of times that I’ve gone shopping in India and come home with what I think is a great deal (i.e. I spend 11 dollars on a hand-carved stone elephant) and my aunts and cousins are immediately like “you overpaid!”

The issue with being a foreigner is you’re a target for scams and cheats. While at the end of the day it may not amount to a lot of money for you in your own currency, you don’t want to continue traveling with unfair deals. This is especially true on long trips as your money will run out super fast. Plus, the whole point of shopping abroad is to get authentic items, locally made and sourced, that the locals themselves buy. In this case, you should also pay the same as the locals and get the same deals.