In a recent survey by JumpStart Coalition for Financial Literacy, only 26 percent of those between the ages of 13-21 said that they had been taught how to manage money. Yet, when they turn 18, kids are signing contracts for student loans, opening credit card accounts, and in many instances, living away from home with little financial guidance available.
A dear friend of ours relayed a story about his young granddaughter that I just had to share. Our friend is a successful business man who, due to his financial acumen, retired early and now has more time in his schedule to devote to this young child. Through his desire to make each day with her special they have naturally forged a strong bond of love and many opportunities to create fun memories. Now, this precious young girl has a real penchant for ice cream and whenever she hears the melodic tunes of the truck she runs to her beloved grandpa for money –
It's been a little while since we visited the topic of alternative investments. In the last piece, published in January, we tried to wrap our arms around what the term 'alternative' really means. Today we're going to look at how alternatives are actually used. While the focus is on the asset side of the equation (as opposed to the strategy side), this snapshot can give you an idea of how real world investors position alternatives in their portfolios.
One thing I wanted to point out is that there are some alternatives that can not or should not be used in certain parts of your portfolio. For example, collectibles are generally an outright no-no in your IRA. Also, while limited partnerships are allowed, they are fraught with peril in IRAs due to a tax term called Unrelated Business Taxable Income (UBTI), which could subject the IRA to current taxation.