Join the 60-20-20 Club

April 4, 20224 min read
Join the 60-20-20 Club
Share on facebookShare on TwitterShare on Linkedin

Key takeaways

  • Financial advisors use the “60-40” portfolio allocation – 60% stocks and 40% public fixed income to simplify asset allocation.
  • The wealthiest Americans have typically allocated a portion of their portfolios to alternative assets in search of diversification and a higher risk-return profile.
  • Yieldstreet’s platform offers most investors the potential to optimize their portfolios with the opportunity to create a 60-20-20 allocation. 

The 60/40 portfolio structure has been a staple investment strategy, pushed by scores of financial advisors for its relative straightforwardness and user friendliness. The recommendation was to allocate 60% of your portfolio in stocks and the rest in public fixed income securities (sovereign and corporate bonds), in order to provide a balanced mix of upside potential (through equities) and downside protection (through fixed bond returns). 

As a savvy investor, you surely noticed that bond yields have been tanking post the great financial crisis (GFC), as central banks tried to support growth by cutting short-term rates and stepping up to buy large amounts of sovereign debt. A typical US Treasury security, which used to yield 4-5% for the twenty years leading up to the GFC, now returns approximately 2% – hardly a return at all and much below the current accelerating rate of inflation. Bonds have appreciated to the extent that the remaining upside is very limited – after all, how much lower can rates go, unless you want to experiment with negative rates as Europe and Japan did? If you had invested in bonds in 2007, your returns would have been quite fabulous. But it would also be time to consider selling, as rising inflation and full employment are pushing the Federal Reserve and other major central banks to target higher short-term rates, with the potential for longer-term rates to also increase.

As equity investments continue to be the cornerstone of a portfolio – after all, US markets return on average 10% a year – the fixed income part of your portfolio deserves a little revamping, while keeping a healthy level of diversification and perhaps even increasing it.

Enter the 60-20-20 allocation

While downside protection suggests you leave 20% of your assets invested in publicly traded fixed income securities – could be corporate bonds, sovereign or quasi-sovereigns – you may wish to consider allocating the remaining 20% to alternative assets. After all, many of the top 1% of the US population have an allocation to alternatives, and it has worked well for them. 

Alternative investments can provide typically uncorrelated returns, potentially lower volatility, and the benefits of a longer time horizon, and in some cases have the potential to offer higher returns compared to more liquid public market instruments. 

Start Investing Today

Diversify your portfolio with private market investment offerings.

Alternatives carry their own risks, and you will have to find the specific allocation that is right for your investment needs and for your risk profile. 

Here are a few common alternative asset classes to consider:

Real Estate – Many already invest in real estate through their primary home. Investors may consider investing in real estate through a second property or through managed indirect real estate opportunities, a way to generate cash flow via rents and capital appreciation if real estate prices increase. 

Private Equity and Credit – Private markets may include private equity and private credit opportunities, and are by definition less liquid and less easily accessed, which comes with trade-offs. Among the potential benefits are more limited competition for investors and returns that are generally less sensitive to headline and short-term market risk. While private markets have traditionally been reserved for qualified investors, Yieldstreet has broadened access to them. Check our private market products.

Commodities – Commodity investments are usually a good inflation hedge. However, they are volatile and hard to access for retail investors. They also require a high level of technical knowledge.

Art & Collectibles – Art has been a popular store of value for decades and gives the investor some aesthetic pleasure with the potential for price appreciation over time. Yieldstreet offers access to fractional ownership through both a dedicated art fund, and through our registered fund offerings. 

Learn more about the ways Yieldstreet can help diversify and grow your portfolio

1. What Is the Efficient Frontier? – Investopedia

2. Are You A Robot? – Bloomberg

3. What Is the Average Stock Market Return? – NerdWallet

We believe our 10 alternative asset classes, track record across 470+ investments, third party reviews, and history of innovation makes Yieldstreet “The leading platform for private market investing,” as compared to other private market investment platforms.

1 Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.

3 "Annual interest," "Annualized Return" or "Target Returns" represents a projected annual target rate of interest or annualized target return, and not returns or interest actually obtained by fund investors. “Term" represents the estimated term of the investment; the term of the fund is generally at the discretion of the fund’s manager, and may exceed the estimated term by a significant amount of time. Unless otherwise specified on the fund's offering page, target interest or returns are based on an analysis performed by Yieldstreet of the potential inflows and outflows related to the transactions in which the strategy or fund has engaged and/or is anticipated to engage in over the estimated term of the fund. There is no guarantee that targeted interest or returns will be realized or achieved or that an investment will be successful. Actual performance may deviate from these expectations materially, including due to market or economic factors, portfolio management decisions, modelling error, or other reasons.

4 Reflects the annualized distribution rate that is calculated by taking the most recent quarterly distribution approved by the Fund's Board of Directors and dividing it by prior quarter-end NAV and annualizing it. The Fund’s distribution may exceed its earnings. Therefore, a portion of the Fund’s distribution may be a return of the money you originally invested and represent a return of capital to you for tax purposes.

5 Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.

6 The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments, excluding our Short Term Notes program, weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including July 18th, 2022, after deduction of management fees and all other expenses charged to investments.

7 Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Alternative Income Fund before investing. The prospectus for the Yieldstreet Alternative Income Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to The prospectus should be read carefully before investing in the Fund. Investments in the Fund are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency) and are not guaranteed by Yieldstreet or any other party.

8 This tool is for informational purposes only. You should not construe any information provided here as investment advice or a recommendation, endorsement or solicitation to buy any securities offered on Yieldstreet. Yieldstreet is not a fiduciary by virtue of any person's use of or access to this tool. The information provided here is of a general nature and does not address the circumstances of any particular individual or entity. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of this information before making any decisions based on such information.

9 Statistics as of the most recent month end.

300 Park Avenue 15th Floor, New York, NY 10022


No communication by YieldStreet Inc. or any of its affiliates (collectively, “Yieldstreet™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice, except for specific investment advice that may be provided by YieldStreet Management, LLC pursuant to a written advisory agreement between such entity and the recipient. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.

Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Yieldstreet believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefore.

Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Yieldstreet or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or liquidity concerns. Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.

Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include a balanced portfolio of different alternative investments.

Articles or information from third-party media outside of this domain may discuss Yieldstreet or relate to information contained herein, but Yieldstreet does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by Yieldstreet of the linked or reproduced content.

Investing in securities (the "Securities") listed on Yieldstreet™ pose risks, including but not limited to credit risk, interest rate risk, and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Securities are only suitable for accredited investors who understand and are willing and able to accept the high risks associated with private investments.

Investing in private placements requires long-term commitments, the ability to afford to lose the entire investment, and low liquidity needs. This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. Yieldstreet™ is not registered as a broker-dealer. Yieldstreet™ does not make any representation or warranty to any prospective investor regarding the legality of an investment in any Yieldstreet Securities.

YieldStreet Inc. is the direct owner of Yieldstreet Management, LLC, which is an SEC-registered investment adviser that manages the Yieldstreet funds and provides investment advice to the Yieldstreet funds, and in certain cases, to retail investors. RealCadre LLC is also indirectly owned by Yieldstreet Inc. RealCadre LLC is a broker-dealer registered with the Securities and Exchange Commission (“SEC”) and a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”). Information on all FINRA registered broker-dealers can be found on FINRA’s BrokerCheck. Despite its affiliation with Yieldstreet Management, LLC, RealCadre LLC has no role in the investment advisory services received by YieldStreet clients or the management or distribution of the Yieldstreet funds or other securities offered on our through Yieldstreet and its personnel. RealCadre LLC does not solicit, sell, recommend, or place interests in the Yieldstreet funds.

Yieldstreet is not a bank. Certain services are offered through Synapse Financial Technologies, Inc. and its affiliates (collectively, “Synapse”) as well as certain third-party financial services partners. Synapse is not a bank and is not affiliated with Yieldstreet. Bank accounts are established by Evolve Bank & Trust. Brokerage accounts and cash management programs are provided through Synapse Brokerage LLC (“Synapse Brokerage”), an SEC-registered broker-dealer and member of FINRA and SIPC. Additional information about Synapse Brokerage can be found on FINRA’s BrokerCheck. By participating in a Synapse cash management program, you acknowledge receipt of and accept Synapse’s Terms of Service, Privacy Policy, and the applicable disclosures and agreements available in Synapse’s Disclosure Library.

Investment advisory services are only provided to clients of YieldStreet Management, LLC, an investment advisor registered with the Securities and Exchange Commission, pursuant to a written advisory agreement.

Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf. Our company never receives or stores any of this information and our third parties do not provide or sell this information to any other company or service.

Read full disclosure