The Cash Flow Clock: For Retirees - Book - Page 19
The Cash Flow Clock
real estate is not as liquid as other types of investments. It can take months
or even years to liquidate properties depending on the market.
Precious Metals
Precious metals such as gold, silver, platinum, and palladium (among others)
provide diversification of risk and a hedge against economic uncertainty but
still have the potential to lose value.
Alternatives
Alternative investments refer to asset classes and strategies that go beyond
traditional stocks, bonds, and cash equivalents. They typically include
investments in assets such as REITs, commodities, options, hedge funds,
private equity, infrastructure, collectibles, cryptocurrencies and other nontraditional assets.
Each of these investments in the Risky World (among dozens others), has
the potential to grow more than Lazy or Safe investments. But they can also
lose value. The hope is that they grow much more than they lose over the
long term. We cannot rely on them for cash flow in the short term. The
Cash Flow Clock can help us decide how much of our portfolio should be in
Risky Money.
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