Alternative Investments can provide lucrative returns that are unavailable by investing in the stock or bond market. In earlier posts, I profiled alternative investments in the following categories: farmland, rooftop solar system, private equity, collectibles, real estate, gold and P2P lending. In this article I profile a different form of alternative investment – Supplemental Pension Plans.
Note that a popular alternative to buying supplemental pension plan is to buy annuities from private companies – most likely insurance companies. Most private insurance companies have annuity products that may suit your needs. Of course, the setup is slightly different (otherwise it would simply be called a ‘pension plan’). With annuities, you deposit a lump sum of money and the insurance company agrees to pay you a guaranteed income for a set period of time or life. But in this article, we look at supplemental pension plans instead – as an alternative investment.
This blog is dedicated to achieving financial freedom that is achieved by saving regularly and investing in appreciating assets to generate passive income. This is done by investing in companies (equities), government bonds (fixed income) and other forms available. In essence, my plan is to build my own pension to fund my retirement. However, there may be other options available depending on your country of residence.