The Money Fit Show · Season 2, Episode 13
The Road to Alternative Investments
A major financial setback can force someone to reconsider assumptions that once seemed permanent. Chris Odegard joins Todd Christensen to discuss rebuilding after divorce, learning about real estate and other alternative investments, leaving a long corporate career, and becoming more deliberate about how he approached financial independence.
Rethinking an investment path after a major setback
Play Season 2, Episode 13 directly through Spotify without leaving Money Fit.
A financial setback can change the questions you ask about investing
Chris Odegard describes a divorce in his 40s that significantly changed his finances. He says that within a short period he lost control of 55% of the assets accumulated during the marriage and also became responsible for child support and alimony.
Rather than simply rebuilding the same way he had before, Chris began questioning his existing investment strategy and learning more about real estate and other alternative investments. That process eventually became part of his decision to leave a traditional W-2 career and pursue a different approach to income and investing.
The episode reflects Chris's personal investment philosophy. Alternative investments can offer different sources of income and diversification, but they can also introduce risks involving liquidity, leverage, valuation, fees, management, regulation, and the possibility of losing money.
Topics covered in this episode
- Looking back at goals and expectations from earlier in life and recognizing when a career or financial path has taken an unexpected direction.
- Chris's experience losing control of more than half of the assets accumulated during his marriage after divorce in his 40s.
- The financial effects Chris experienced from divorce, including asset division, child support, and alimony in addition to the emotional consequences.
- Considering whether to work longer, reduce lifestyle expenses, increase income, or pursue a substantially different financial path after a major setback.
- Chris's shift from relying primarily on traditional retirement and market investments toward learning more about real estate and alternative assets.
- The idea that people may become more receptive to new financial concepts once they recognize a need to change what they have been doing.
- Comparing the risks and potential rewards of changing an established investment strategy with remaining in more familiar investments.
- Approaching investment seminars carefully and expecting that educational presentations may also lead to sales offers for additional products or services.
- How friends and relatives may react when someone begins exploring investments or financial strategies outside familiar approaches.
- Using podcasts, videos, books, investor groups, and other educational sources to learn about unfamiliar investment concepts before committing money.
- National and local Real Estate Investors Associations as potential sources of education, networking, and connections with other real estate investors.
- Chris's early real estate investing experience purchasing a college duplex with his daughter.
- His progression from a traditional W-2 career toward relying more heavily on income generated by real estate and other investments.
- Comparing considerations such as income, liquidity, control, leverage, taxes, management responsibilities, fees, and risk across real estate, securities, and other investments.
- Focusing attention on the next important action rather than trying to change every part of a financial life at the same time.
Understand the investment before deciding whether it belongs in your plan
“Alternative investment” covers many different assets and strategies. Before investing, understand how the investment may make money, how you can lose money, how easily you can sell it, what fees and taxes apply, whether debt or leverage is involved, who controls the asset, and what information is available to evaluate it. Different does not automatically mean better or worse.
Learn before committing money
Real estate associations and investor education resources can help introduce unfamiliar concepts, but educational content should be separated from sales claims and independently evaluated before making an investment decision.
Chris Odegard
Chris Odegard joined Todd Christensen as the creator of The Prolific Investor and author of Get Off Your A$$ and Manage Your Money: Why You Need Alternative Investments.
His conversation with Todd follows his transition from a long corporate career and primarily conventional investing toward real estate and other alternative investments after a major personal and financial disruption.
The investment comparisons and preferences discussed in the episode reflect Chris's experience and viewpoint. They should not be interpreted as Money Fit recommending alternative investments over traditional retirement accounts, securities, or diversified investment portfolios.
