QUESTION: Alternative investments: when are gold, commodities, REITs, and venture capital appropriate?

Alternative investments represent an asset class that goes beyond traditional instruments such as classic stocks and bonds. The question of when it is appropriate to add gold, commodities, real estate funds, or venture projects to a portfolio concerns many investors seeking diversification. To successfully implement these instruments into your investment strategy, it is recommended to follow a specific action algorithm.

At the first stage, it is necessary to determine your current standing and assess your overall risk profile. At the second stage, a success metric is set, such as capital protection against inflation or generating stable passive income from rent via REITs. At the third stage, specific instruments are selected based on your goals, such as purchasing physical gold or investing in commodity futures. At the fourth stage, a strict deadline is set for portfolio review, and at the fifth stage, regular actions are automated, such as monthly replenishment of a brokerage account to purchase shares of real estate funds.