Diversify with Alternatives

• How much of my portfolio should I put into alternative investments?
  Allocation depends on your risk tolerance: 5% to 10% for conservative, 10% to 20% for moderate, and 20% to 30% for aggressive investors.
• What determines if an aggressive investor can allocate the maximum 30%?
  Aggressive investors must have a long time horizon and enough liquidity to support this higher allocation.

• What is the main difference in trading frequency between liquid and non-liquid alternatives?
  Liquid choices allow daily buying and selling, while non-liquid choices lock up capital for months or years.
• Are investment minimums the same for both types of alternatives?
  No. Liquid choices have low entry barriers for retail accounts, whereas non-liquid choices require high institutional capital.
• How does regulatory oversight differ between these two investment types?
  Liquid alternatives face strict SEC compliance, while non-liquid options have fewer disclosure requirements.
• How often are non-liquid alternative investments valued?
  They are appraised periodically or quarterly, unlike liquid alternatives which are valued publicly every day.

• What are the primary benefits of choosing liquid alternatives?
  They offer daily liquidity, low investment minimums, and high transparency regarding portfolio holdings.
• What downsides should I look out for with liquid alternatives?
  They can suffer from potential underperformance, carry higher internal fees, and have capped upside due to strict regulations.
• What unique advantages do non-liquid alternatives offer?
  They provide an illiquidity premium, true market insulation, and direct asset control.
• Why are non-liquid alternatives considered risky for short-term cash needs?
  Funds can remain completely inaccessible during capital lock-up periods lasting 5 to 10 years.

•  What is the first step I should take before investing in non-liquid alternatives?
  Assess your net worth to determine if you meet the specific financial thresholds to qualify as an accredited investor.
• How should a beginner start allocating funds to alternative investments?
  Discuss your options with an investment professional and make sure the alternative meets your risk tolerance, investment time horizon and options who provide liquidity.
• How often should I manage my alternative asset allocation?
  Check your allocations between quarterly to  at a minimum annually.

 Brookwood is headquartered at 3930 E. Ray Road, Suite 155, Phoenix AZ 85044.  It is important to read our disclosures available at this link: https://brookwoodinvestmentgroup.com/disclosures/.   Advisory Investments contain risk which may result in the loss of principal.

Our representatives are licensed insurance agents with affiliated or non-affiliated companies. In this role, they may recommend certain insurance-related products for which they may receive compensation via direct commissions.  This creates a potential conflict of interest, as the commission earned could influence their recommendations. It is crucial that you review your representative's Brochure Supplement to understand any potential conflicts.

You are under no obligation to purchase any commission-based products from our representatives. You are free to purchase insurance-related products recommended by our representatives through other, non-affiliated representatives and/or companies.

Our advisors do not give legal or tax advice.  You should always consult with a licensed professional in these areas concerning your financial plan.   Our professionals may provide referrals but do not practice law nor prepare tax documents.  Alternative investments, private credit, and energy investing have significant risk and may lose value.