Alternative investments work for the very rich but then they can afford to lose a lot

Putting money into unlisted investments such as private credit is increasingly popular with very wealthy investors – but that does not mean they work for everyone.

Alternative investments are widely defined. It can include unlisted infrastructure trusts, specialist hedge funds, private credit or even gold bullion.

Big super funds and high net worth investors are ever more keen on “alternative investments”. It seems every week we hear how a major super fund or a tycoon managed to make exceptional returns in some exotic trade.

Alternative investments are widely defined. It can include unlisted infrastructure trusts, specialist hedge funds, private credit or even gold bullion.

But are these often illiquid and regularly opaque investments for you?

One of the nation’s top female financial advisers certainly does not think so.

Sally Huynh believes that everyday investors should treat alternatives as an area where you put money you are prepared to lose. She would much prefer you stuck to the plan of paying down your mortgage or finding a way to cut your daily expenses!

Who is the guest?

Sally Huynh of the Shadforth Financial Group

Why her?

She is one of a handful of women financial advisers who have managed to stay at the top end of The Australia’s list of Top Financial Advisers.

What are the topics this time?

• Sticking with a financial plan through thick and thin

• The very rich can risk a lot on alternatives – but can you?

• Why defined benefit pension funds are ‘gold’

• Bonds versus term deposits

Question of the week

Regular listener Chris asks: “On the Tuesday Money Puzzle property podcast last week you posed the question ‘So why don’t more people negatively gear equities: So why don’t they? Can you please explore this topic in detail?’

Questions always welcome to the podcast, via [e-mail]