Saturday, October 22, 2022

Yieldstreet 2022 Review: Investing in Alternative Assets

Investing your money is an important part of maintaining your financial health. And while investing money in the stock market is one of the popular ways to grow your money and build your wealth, it’s definitely not the only way to invest.

Once you feel secure in your finances, you may consider diving into alternative investments. Alternative investments are asset classes that do not include stocks, bonds, and cash. For example, collectible items such as fine wine, coins, stamps, and vintage cars can be an alternative investment. Private debt and real estate are another popular alternative asset to invest in.

The options can be overwhelming and you may not even know where to start. Yieldstreet is a platform that helps you get started by giving you access to different types of alternative asset deals and all the necessary details to guide you in your investments.

Below, select Review how the site works and what you need to know to be eligible to get started.

Yieldstreet Review

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How does Yieldstreet work

Yieldstreet gives investors the opportunity to participate in crowdfunding of alternative investments on the platform. Crowdfunding is the process of raising small amounts from a large number of people. So instead of one person investing $50,000, crowdfunding allows 50 people to invest a minimum of $1,000 to reach the same goal.

Yieldstreet also provides retail investors with opportunities to invest in special structured credit deals, a deal in which the investor receives a guaranteed minimum return, and the risk of lower earnings is protected. These trades are usually only available to institutional investors or hedge funds. The platform secures investments across deals that include commercial and technical real estate and marine projects.

The minimum investment is usually around $10,000, which may not be the best for those who don’t have a lot of extra money to invest outside of their IRA or brokerage account. As of October 2022, more than $4 billion has been invested in their platform with an annual net return of 9.61%, according to Yieldstreet.

It’s also important to note that most trades on Yieldstreet are only available to accredited investors, who are defined by the Securities and Exchange Commission (SEC) as people with a net worth of more than $1 million – excluding the value of your primary residence – or annual income for the past two years of at least $200,000 $1 for singles and over $300,000 for couples. Another option would be to hold certain certificates or credentials, such as Series 7, Series 65, and Series 82 licenses. So, unless you meet these criteria, you likely won’t be able to participate in most opportunities on the platform.

However, in August 2020, Yieldstreet created the Prism Fund, which is available to unaccredited investors. The minimum investment amount for assets within the Prism Fund is $2,500, which makes it a bit easier to access.

You can register to start investing on Yieldstreet with your Apple ID, email or Google. After choosing your registration method, the site will prompt you with a few questions to determine if you are an accredited investor. If you meet the criteria, you can start designing your Yieldstreet dashboard according to your preferences and investment needs.

What types of investments are offered?

expenses

Yieldstreet charges an annual management fee that averages from 0% to 2.5%. There may also be investments with a fixed annual fee – these fees are disclosed on the individual offer pages. Annual fund expenses may also be charged to investors depending on the legal structure of the offering, and specific information about these expenses can also be found on the individual offering pages.

Who is this better for?

Yieldstreet is ideal for accredited investors who want to diversify their portfolio through alternative investments. Non-accredited investors are also accommodated on the platform through the Prism Fund, however, it is important to ensure that you have already exhausted your other traditional investment accounts first.

Since you may need to hold your money for potentially long periods, you will want to be relatively stable in your current financial situation. It is important that before entering into alternative investments, you must have A fully funded emergency fund, contribute at least enough to receive a matching employer’s 401(k), contribute to a Roth IRA and have additional savings on the side.

It may be worth considering using an automated advisor, such as Wealthfront or Betterment, to invest your money before you start purchasing alternative investments. The platforms will create a diversified portfolio of ETFs for you based on your risk tolerance and investment time horizon.

Another important thing to keep in mind is to make sure that less than 10% of your portfolio is made up of alternative investments like those offered by Yieldstreet. This way, you can maintain a diversified balance of all your assets.

minimum

Yieldstreet’s advantages include extensive access to asset-backed alternative investments, providing a form of protection in the event of a default. The downsides include the fact that most of the offerings are only open to accredited investors and there are only a limited number of investments available. In general, Yieldstreet makes more sense for those who have already exhausted other traditional investment accounts, such as brokerage and retirement accounts, and have larger amounts of money to put into alternative assets.

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Editorial note: The opinions, analyses, reviews or recommendations in this article are those of the selected editorial board alone, and have not been reviewed, approved or otherwise endorsed by any third party.



Originally published at San Jose News Bulletin

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