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Alternative or Illiquid Investments

Your Alternative or Illiquid Investments Might Not be Worth Their Value on Your Monthly Statement

Pricing alternative, illiquid investments can be challenging because there is often a lack of market data and comparable assets to use as a reference. Some methods that can be used to price these types of investments include:

  1. Market approach: This method involves comparing the asset to similar assets that have been recently sold or are currently available on the market.
  2. Cost approach: This method involves determining the cost of reproducing or replacing the asset, and then adjusting for its fair market value.
  3. Income approach: This method involves estimating the asset’s potential income and then discounting it back to its present value using a capitalization rate.
  4. Expert Opinion: Hiring an expert in the field, such as an appraiser or a consultant, to provide an opinion on the value of the asset based on their experience and knowledge.

It is important to note that different methods may be more appropriate for different types of assets and that the value of an illiquid assets can be subject to change depending on the market and other factors.

If you have questions about the value of your alternative or illiquid assets or if you wish to discuss your particular situation and the potential for the recovery of your investment losses, or you have information of interest, please contact us for an evaluation of your potential case.