What Should You Ask Before Investing in Private Credit or Alts?

1. Can you actually get out?

• Know your get-your-money-back date in plain months/years.
• Ask us to map a one-page “liquidity timeline” and add it to your plan.
• Keep your safety cash outside alts (emergency or business runway).

2. What does it really cost?

• See the all-in cost in dollars on a simple $100k example (good/flat/down).
• Prefer simple, transparent fees; we’ll summarize on one page.
• Avoid stacked layers unless there’s a clear benefit.

3. Who’s underwriting the risk—and how?

• Get a one-paragraph explainer: what we’re buying and how it makes money.
• Know the “no-go” rules: what risks the manager refuses to take.
• Favor repeatable process + independent checks (admin/auditor/custodian).

4. Where does this live in your plan?

• Give it one job (income, diversification, or growth).
• Cap sizing to avoid concentration; pace in instead of all at once.
• Plan to rebalance after big market moves.

5. What will this do to taxes?

• Pick the right account (taxable vs. IRA) and know why.
• Know your tax form & timing (K-1 or 1099) so filing isn’t delayed.
• Estimate the tax rate on income and set funds aside.

What Cottonwood Handles

(so you don’t have to)

• Translate terms into plain English and draw your liquidity & fee maps.
• Fit & pacing models aligned to your goals, then right-size the allocation.
• Coordinate with CPA/attorney so taxes and documents are clean.

Office Hours: 4 slots/month (30-min intro)

We’ll cover goals, liquidity, and taxes—then a clear next step.

*Content is for informational purposes only. Neither the information nor any opinion expressed in this content constitutes an offer by Cottonwood Wealth Strategies to buy or sell any securities or financial instruments, or to provide any investment advice or service. Private investments carry risk and may be illiquid.