Help CenterAlternatives - General FAQs
1. Why should healthcare practitioners consider alternatives?
As a healthcare professional, much of your wealth may already be tied to your practice, a few real estate holdings, or traditional retirement accounts. Alternatives can help you:
- Diversify beyond public markets
- Access opportunities previously reserved for institutions
- Build long-term wealth that aligns with your retirement and legacy goals
2. I have limited time — how much effort is required?
Direct investments do require upfront review of materials and risk disclosures, but most platforms streamline the process with digital onboarding, dashboards, and automated reporting. Once invested, ongoing management is handled by the fund or manager, not you.
3. What types of alternatives are most relevant to healthcare professionals?
Common strategies include:
- Private real estate (income-producing properties, medical office buildings)
- Private equity or venture capital (including healthcare-related innovations)
- Private credit (debt strategies offering potential income streams)
- Infrastructure and real assets (inflation-hedging opportunities)
4. How do these investments fit into my retirement planning?
Alternatives can complement your traditional retirement accounts by:
- Offering potential higher returns over long horizons
- Providing income streams (e.g., real estate or credit)
- Helping preserve wealth against inflation
Because they are long-term and illiquid, they should be viewed as a supplement to — not a replacement for — your retirement portfolio.
5. Are there special tax considerations for doctors and dentists?
Yes. Many practitioners are high-income earners in higher tax brackets. Certain alternative strategies may provide:
- Tax-deferred growth (capital appreciation inside funds)
- Pass-through benefits (e.g., depreciation from real estate)
- Complex reporting (K-1s, etc.) — which your CPA should review
Always consult a tax advisor to align investments with your personal situation.
6. What are the risks I need to be most aware of?
- Illiquidity: Funds may lock up capital for 5–10+ years.
- Complexity: Strategies can be harder to understand than public equities.
- Capital at risk: Returns are not guaranteed.
Healthcare professionals should only allocate capital they won’t need for near-term expenses.
7. What are the minimum investment amounts?
Minimums vary. Some direct opportunities may start at $25,000–$100,000, while institutional-level funds may require $250,000–$1M+. Newer platforms are lowering barriers for accredited professionals.
8. How do I stay informed if I’m busy with my practice?
Most platforms provide:
- Quarterly or annual reports
- Digital dashboards for real-time tracking
- Automated alerts for capital calls and distributions
This minimizes the time commitment required.
9. Can I invest through my retirement accounts?
Yes — in many cases, alternatives can be accessed through self-directed IRAs or certain retirement plans. This allows you to use tax-advantaged accounts while diversifying into private markets.
Interval Funds – Frequently Asked Questions
1. What is an interval fund?
An interval fund is a type of SEC-registered closed-end fund that offers investors exposure to alternative and private market strategies, with limited liquidity through periodic share repurchases.
2. How do interval funds differ from mutual funds or ETFs?
Unlike mutual funds or ETFs, interval funds don’t trade daily on an exchange. Instead, they allow investors to redeem shares at set intervals (often quarterly), typically up to a capped percentage of the fund’s assets.
3. How often can I redeem my shares?
Most interval funds offer redemption opportunities quarterly, but the exact schedule and percentage available for repurchase are stated in the fund’s prospectus.
4. Are interval funds liquid?
They provide more liquidity than traditional private funds but less than daily-traded vehicles like mutual funds. Liquidity is limited to the fund’s scheduled repurchase offers.
5. What types of investments do interval funds hold?
They often invest in less liquid assets such as private credit, private equity, real estate, infrastructure, or other alternative strategies that are typically hard to access for individual investors.
6. Who can invest in interval funds?
Most interval funds are available to accredited and non-accredited investors, though some may have minimum investment requirements.
7. How are interval funds priced?
Shares are purchased and redeemed at net asset value (NAV), which is typically calculated daily or weekly based on the value of the underlying portfolio.
8. What are the potential benefits of interval funds?
They offer access to private markets, diversification, professional management, and periodic liquidity—all within a regulated structure.
9. What are the risks of interval funds?
Risks include limited liquidity, potential valuation challenges for illiquid assets, market risk, and the possibility that redemption requests may not be fully met if they exceed the fund’s repurchase limit.
10. How do interval funds generate returns?
Returns may come from income (e.g., interest or dividends), capital appreciation of underlying assets, or both—depending on the fund’s strategy.
11. What fees do interval funds charge?
They typically charge management fees and may include performance fees, operating expenses, or other costs. All fees are disclosed in the fund’s prospectus.
12. How do I know if an interval fund is right for me?
Interval funds may suit investors seeking long-term exposure to private markets who can tolerate limited liquidity and are comfortable with alternative investment risks.
10. How do I get started?
A Simple Onboarding Process for New Investors
Step 1: Understand What Interval Funds Are
- Interval funds are a type of closed-end fund that offers periodic (often quarterly) opportunities to redeem shares, unlike daily liquidity mutual funds.
- They typically invest in less liquid assets (e.g., private credit, real estate, alternative strategies) that aim to provide diversification and income.
- Key takeaway: They balance access to alternative investments with limited liquidity.
Step 2: Assess Your Investment Goals
- Ask yourself:
- Am I seeking income, diversification, or exposure to alternative assets?
- Can I commit capital for a medium- to long-term horizon?
- Interval funds are generally not suitable if you need quick access to your cash.
Step 3: Review Fund Materials
- Read the prospectus and fact sheet carefully.
- Pay attention to:
- Investment strategy
- Fees and expenses
- Redemption schedule (intervals and limits)
- Risks (market, liquidity, credit, etc.)
Step 4: Open an Account
- Interval funds can be purchased through:
- Financial advisors
- Brokerage platforms that offer alternative investments
- Directly from the fund sponsor (depending on availability)
- You’ll need to complete standard account-opening steps (identity verification, funding, suitability questionnaire).
Step 5: Make Your Initial Investment
- Minimum investment amounts vary (often $2,500–$25,000).
- Decide whether to invest a lump sum or set up recurring contributions (if allowed).
Step 6: Understand the Redemption Process
- Redemption requests can only be made during specified “interval windows” (e.g., quarterly).
- The fund may limit the percentage of shares that can be redeemed.
- Plan liquidity needs accordingly—interval funds are not daily-traded like mutual funds or ETFs.
Step 7: Monitor Your Investment
- Review quarterly reports and updates from the fund manager.
- Track:
- Distribution payments
- Net asset value (NAV) performance
- Any changes to redemption policies or strategy
Step 8: Work With Your Advisor (Optional)
- A financial advisor can help determine whether interval funds align with your broader portfolio and risk tolerance.
Quick Checklist Before You Invest
✅ I understand interval funds are illiquid between redemption windows.
✅ I’ve reviewed the fund’s strategy, risks, and fees.
✅ I can commit capital for the medium- to long-term.
✅ I know how and when I can request redemptions.