Unlocking Wealth: Explore the World of Alternative Investments!
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Yieldstreet opens doors to a world of investment like never before! Whether you’re an accredited investor or starting your journey, this innovative crowdfunding platform allows you to dive into alternative assets such as real estate, art, and structured notes. With a user-friendly interface and a track record of impressive returns, it’s a game-changer for anyone looking to enhance their investment portfolio, including retirement savings accounts.
Our personal finance experts have taken a deep dive into Yieldstreet and compared it to the top real estate investing apps in the market. The verdict? It stands tall as an industry leader for those eager to invest holistically in real estate.
Yieldstreet
Fees
1% to 4%; 1.5% for the Alternative Income Fund
- Access to unique investments including art, real estate, and legal settlements, perfect for diversifying portfolios.
- Regular interest payouts over the life of the investment.
- Higher-risk investments, mainly suited for those with significant capital to invest.
- Fees may be steeper compared to other investment accounts.
- Investments can be highly illiquid.
Yieldstreet is tailored for seasoned, high-net-worth investors. If you’re looking for real estate and alternative investment opportunities, it’s a top choice, but beginners or those with limited funds might want to explore other options.
- Perfect for: High-net-worth investors keen on diversifying into real estate and alternative assets.
- Awards: Recognized in CB Insights’ Fintech 250 as a top fintech startup.
Introducing Yieldstreet
Yieldstreet is your gateway to a diverse portfolio of private market investments. With curated recommendations from seasoned managers, this platform takes a comprehensive approach to wealth building and risk management.
If you’re an accredited investor, you can generate passive income through Yieldstreet’s extensive collection of alternative assets, including private credit and venture capital. Non-accredited investors can dip their toes in with the Yieldstreet Alternative Income Fund.
Yieldstreet is an excellent fit for those seasoned investors keen on diversifying their portfolios. However, it’s not the best platform for novices or those wary of investment risks, as these opportunities are typically illiquid.
Overall Rating
How Yieldstreet Functions
Yieldstreet presents a variety of asset classes and minimum investment requirements, making it versatile for different investor profiles. You can explore options like real estate, art, private equity, and even cryptocurrency.
Yieldstreet maintains transparency about each investment opportunity, detailing strategies, sizes, risks, and expected returns. Just remember that these options are available for a limited time, and it’s first-come, first-served.
Here are three main asset types you can invest in:
- Equity: High-return, high-risk investments, such as the Art Equity Fund V, which aims for appreciation over time with a $15,000 minimum investment.
- Credit: More stable returns focused on short-term liquidity. For instance, the Short Term Note Series CXXVIII allows for monthly interest over nine months with a $10,000 minimum.
- Other: Mixed returns from contractual income and capital gains, like the ST Income Notes Diversified Portfolio XLVI, with a minimum investment of $15,000.
Be prepared for a lock-up period that restricts your liquidity, which can span from three months to five years depending on the investment.
While many funds show positive returns, Yieldstreet is upfront about the risks—make sure you understand the potential downsides before diving in.
You can also use the Yieldstreet Wallet, a high-yield savings account held at Evolve Bank & Trust, for funding investments, including IRAs.
Yieldstreet Alternative Income Fund
The Yieldstreet Alternative Income Fund is unique as it welcomes both accredited and non-accredited investors. This fund aims for income generation with quarterly distributions and an attractive 8.1% annualized yield, starting at a $10,000 minimum.
It combines over 20 income-generating alternative asset classes, providing broad market exposure and the potential for capital appreciation. However, keep in mind that your investment won’t be highly liquid—you’ll need to consider your commitment carefully.
IRA Accounts
Yieldstreet has teamed up with Equity Trust to enable investors to add private market investments to self-directed IRAs, enhancing returns and reducing market volatility. Over 85% of Yieldstreet’s alternative investment products qualify for IRAs, making it a solid choice for retirement saving.
Opening a self-directed IRA (be it traditional, Roth, SEP, or SIMPLE) is simple through either Equity Trust or Yieldstreet, and there’s a reduced account fee available.
Fees
Yieldstreet requires a minimum investment of $10,000 to begin, alongside annual management fees ranging from 1% to 4%, based on the fund type. The Alternative Income Fund features an annual expense ratio of 3.74% with additional costs.
Pros and Cons of Yieldstreet
Is Yieldstreet Trustworthy?
Yieldstreet holds a D rating from the Better Business Bureau due to multiple unresolved complaints. However, the BBB notes that their ratings don’t guarantee a company’s reliability or performance.
In 2022, the SEC took action against Yieldstreet for failing to disclose critical information to investors, resulting in a settlement of over $1.9 million. They neither admitted nor denied the allegations.
Yieldstreet vs. Other Investment Platforms
Yieldstreet vs. Fundrise
Yieldstreet shines in fine art, real estate, and multi-asset class fund investments, while Fundrise is better suited for those focused strictly on real estate. For non-accredited investors, Fundrise is a better choice due to its lower minimums and fees.
Yieldstreet vs. CrowdStreet
Both platforms offer diverse investments, but CrowdStreet is tailored for seasoned real estate investors with a higher minimum investment requirement. Yieldstreet allows non-accredited investors to access the Alternative Income Fund, making it more accessible.
Frequent Questions
Yieldstreet is a secure alternative investment platform with robust data protection and FDIC-insured wallets. However, with high-reward investments comes higher risk; understanding the risks is crucial.
Fees hinge on your selected funds, with minimum investments generally between $10,000 and $25,000 and management fees ranging from 1% to 4%. Yieldstreet provides full transparency regarding fees.
Non-accredited investors can participate in Yieldstreet through the Alternative Income Fund, starting at a $10,000 investment with an appealing annualized yield of 8.1%.
Why You Should Trust Our Review
Our team conducted a thorough analysis of Yieldstreet using established rating criteria to deliver an unbiased comparison of account types, pricing, investment options, and overall user experience. Our rating system ranges from 0 to 5, giving you a clear picture of how Yieldstreet measures up against others in the market.
Real estate investing platforms offer a multitude of assets and trading tools. Whether you’re a seasoned investor or just starting, Yieldstreet was evaluated on its suitability for different types of investors.
