In an era of low interest rates and risky markets, should advisors consider recommending alternative investments like real estate? Before you say yes, consider these practical considerations:
• Prohibited transactions — either outright or self dealing — and conflict-of-interest rules
• Even greater need to document a prudent fiduciary process
• Nondiscrimination and general tax issues
• Taxable income rules
• Audits, bonding and valuation requirements
And before you say no, have you considered alternatives for certain clients?
