Alternative Investments as We Age: Dive into Your Portfolio

Overview

This course delves into the world of alternative investments, focusing on how they can be integrated into portfolios as we age. It covers the fundamentals of asset allocation, investment risks, and returns, and explores the dynamics of portfolio diversification. You'll learn about various alternative investments, including farmland, real estate, and cryptocurrency, and understand their role in enhancing portfolio performance. The course also addresses the complexities and considerations of investing in alternatives, such as costs, liquidity, and regulatory constraints. Through practical case studies and modeling exercises, you'll gain hands-on experience in building and managing a diversified investment portfolio. This course is part of the College of ACES suite of online programs, including the graduate-level certificate, "Land, Agriculture, and Alternative Investing," which can be stacked toward a master's degree. To learn more about online programs from the College of ACES and explore ways to apply your Coursera work toward a degree program at the University of Illinois, visit ACES Online at acesonline.illinois.edu.

Syllabus

Orientation & Module 1 | Introduction to Investment Fundamentals

In the course orientation, you'll get to know the course, your classmates, and our learning environment, and gain the technical skills needed. Then, dive into the basics of asset allocation and investment fundamentals. You'll explore various asset classes, understand different types of returns, and learn about portfolio risks such as beta and standard deviation. The module also covers alternative investments and their role in diversification, providing you with a solid foundation in investment principles to make informed decisions about your portfolio.

Module 2 | Portfolio Dynamics and Risk Preferences

This module delves into the dynamics of portfolio construction and risk preferences. You'll learn how to demonstrate risk and return outcomes with a two-asset portfolio, build an efficient frontier with a multi-asset portfolio, and understand the concept of indifference curves in portfolio choices. The role of alternative investments in portfolios will also be discussed, enabling you to construct and manage a diversified portfolio that aligns with your risk preferences and financial goals.

Module 3 | Harnessing the Power of Alternative Investments

This module focuses on modeling portfolios and asset allocation outcomes using the Nitrogen risk management tool. You'll explore the role of crypto and blockchain in portfolios, understand long-term farmland investing, and engage in a case study to apply your knowledge. This module equips you with advanced tools and strategies to enhance your portfolio with alternative investments.

Module 4 & Conclusion | Opportunities, Limitations, and Constraints of Investing with Alternatives

In this module, you will explore the costs, liquidity preferences, and regulatory constraints of alternative investments. You'll revisit accredited investor rules, create a diversified portfolio, and compare it to traditional holdings. This module helps you navigate the complexities of alternative investments. After this module, you will be ready to complete the final assessment for the course and earn your Coursera certificate!