Yieldstreet Review [2022]: Is Yieldstreet Safe and Legit?

the millennial money woman blog post "Yieldstreet Review"

Disclosure: This post may receive compensation from partners listed through affiliate partnerships, at no cost to you. This doesn’t influence our ratings, and the opinions are our own. Learn more here.

Yieldstreet is an online crowdfunding platform where investors can diversify their portfolios in alternative asset classes ranging from marine projects to private equity deals for minimums of $500 to $10,000+.

With Yieldstreet, you’ll have the option to:

  • Earn passive income
  • Diversify your portfolio
  • Protect yourself against inflation
  • Invest in an array of alternative assets
  • Protect yourself against stock market volatility

Yieldstreet is one of the first companies to offer an assortment of non-traditional investment classes to both accredited and non-accredited investors.

But is it safe and legit?

Let’s take a deep dive into this Yieldstreet review and find out if it’s the best alternative investment platform for you.

Overall Rating:
4.2/5
Fees
Projected profits
Investment options
Pros Cons

Earn passive income

Protection against inflation

Several investment classes

Relatively high fees

Very illiquid (5+ years)

High investment minimums

What is Yieldstreet?


Yieldstreet is an online alternative investment platform for both accredited and non-accredited investors where you can generate passive income while diversifying your portfolio in asset classes such as real estate, marine finance, lawsuit settlements, and private equity.

How Does Yieldstreet Work?


Instead of signing up for an exclusive (and very expensive) hedge fund, Yieldstreet delivers the alternative investment classes to you, online.

Yieldstreet uses crowdfunding to help investors diversify their portfolios.

If you invest in Yieldstreet, then you’re more likely to invest in debt – not equity – investments. 

This means you are investing in loans that fund ventures such as:

  • Legal finance – You’re financing someone’s lawsuit
  • Marine finance – You’re financing a shipping vessel
  • Commercial real estate – You’re financing a short term loan aka bridge lending

Over $2.5 billion has been invested in Yieldstreet so far, and below are a few numbers to spice up the statistics:

  • $95 million – Fine art
  • $246 million – Marine finance
  • $376 million – Commercial real estate
  • $408 million – Other

The investments are classified as asset-backed investments.

Alternative investments like the ones offered on Yieldstreet do not typically correlate with the stock market.

Yieldstreet’s goal is to:

  • Diversify your holdings
  • Protect investors from inflation
  • Help you earn passive income
  • Protect investors from market volatility

Both accredited and non-accredited investors have access to Yieldstreet’s investments – but if you’re an accredited investor, then you can invest in many different options. 

Non-accredited investors can only invest in the Prism Fund (for a minimum of $500). 

Here’s a quick checklist to see if you’re an accredited investor:

Rule Accredited Status

Annual income if filing single

Over $200,000 in the past 2 years & you expect to earn the same this year

Annual income if filing joint

Over $300,000 in the past 2 years & you expect to earn the same this year

Net worth if filing single or joint

$1 million (excluding your primary home)

Financial professional licenses

Series 7 or Series 65 or Series 82

The guidelines above encompass 90% of the rules that you’ll want to review to determine whether you fall into the accredited versus non-accredited investor category.

There is no doubt that Yieldstreet makes alternative investing much easier by bringing the diverse options directly to you online.

Yieldstreet Pros and Cons


Let’s take a big-picture look at the Yieldstreet pros and cons:

Pros Cons

Yieldstreet’s average annual returns are 9.71%

Very illiquid (can take up to 5+ years to liquidate)

Investors earn passive income over the lifetime of the investment

High investment minimums (typically starting at $10,000)

Gain access to a wide range of alternative investment classes (real estate, marine projects, private equity, etc.)

Fees tend to be relatively high (ranging between 0% to 2.5% per year on assets held under Yieldstreet’s management)

You can invest using a self-directed IRA, trust, LLC, or solo 401(k)

Most offerings are available only to accredited investors

Yieldstreets vets each deal and fewer than 10% are accepted

Yieldstreet is typically best for those with a lot of cash to invest

Very low correlation to the stock market, so you can protect yourself against inflation and stock market volatility

No secondary market is offered at the moment (as of mid-2022)

I should note that Yieldstreet’s strict vetting process allows for a higher potential return on your investment. 

In fact, since the company’s first offering in 2015, Yieldstreet has reviewed over $34 billion worth of deals and closed on less than $3.1 billion.

These numbers mean that only about 9.29% of deals are closed by Yieldstreet.

Overall Rating


Before reading further, check out my ratings for each of the following 6 categories:

Yieldstreet Overall Rating

Investment Options

⭐️⭐️⭐️⭐️⭐️

Projected Profits

⭐️⭐️⭐️⭐️⭐️

Usability

⭐️⭐️⭐️⭐️

Customer Service

⭐️⭐️⭐️⭐️

Fees

⭐️⭐️⭐️

Liquidity

⭐️⭐️

To give a little more detail on the reason for my ratings, take a look at my breakdown below:

  • Investment Options – For someone who is looking to diversify their portfolio, Yieldstreet really does have a wide variety of non-traditional investment options
  • Projected Profits – Over the past 50 years, the S&P 500 has returned an average of roughly 9.5%. In comparison, Yieldstreet’s target returns are expected to earn up to 25%
  • Usability – I’m a very big fan of Yieldstreet’s online portfolio – plus I think it’s very user-friendly. The only feedback I’d have is to make the educational resources a little more intuitive to find
  • Customer Service – You can connect with Yieldstreet mainly through email or phone. The downside is that you cannot just make a call and have it answered – you have to send an email first, schedule a time to call, and then someone from the team will give you a call back (likely within 7 to 14 days of your first request)
  • Fees – I am a bargain-budgeter and do not like paying fees. I’m used to paying 0.01% on my investments, so seeing annual management fees ranging up to 2.00% is a steep premium for me
  • Liquidity – Generally speaking, I’m not the biggest fan if your money is tied up for long periods of time (and in Yieldstreet’s case, your money can be tied up for up to 5+ years)

Yieldstreet Features


Let’s take a big picture look at Yieldstreet’s main features:

Yieldstreet Features

Year Founded

2015

Headquarters

New York City

Minimum Needed to Open Account

$0

Minimum Needed to Start Investing

- Crypto - $25,000+

- Prism Fund - $500

- Real estate - $5,000

- Short Term Notes - $500 

Investment Account Types

- LLC

- Trust

- Individual account

- Self-Directed IRA (Roth or Traditional IRA)

- Solo 401(k) that is set up as a trust or LLC

Investment Returns

Projected Returns: 3% to 25%

Asset Classes

- Legal

- Marine

- Fine art

- Real estate

- Debt obligations

- Commercial finance

Total Assets Under Management

$2.5 billion+

Number of members

378,000+

Availability

- Desktop

- Mobile app

FDIC Protection?

Yes (cash in your Yieldstreet Wallet)

Customer Service

- By Email

- By Phone

- By Social Media

International Investors Must Have

- US based address

- Valid SSN or TIN/EIN

- US based bank account

Yieldstreet Fees


Here’s what you can expect when you invest with Yieldstreet:

Yieldstreet Fees & Investing

Fees

- Prism Fund: 1.5%

- Management Fees: 1% to 4% per year (based on individual offering)

- Other annual flat expenses (depends on investment type).

- Flat expenses are paid from initial interest distributions from your investment

Minimum Investment

Varies, depending on investment type (ranges from $500 to $10,000+)

Typical Holding Period

5+ years

Investment Options

- Blue-Chip Art

- Cryptocurrency

- Structured Notes

- Short Term Notes

- Private Equity Deals

- Venture Capital Deals

- Legal Finance Projects

- Yieldstreet Prism Fund

- Marine Finance Projects

- Leveraged Mortgage Loans

- Real Estate Invest Trust (REIT)

- Private Business Credit Projects

-Floating Rate First Mortgage Loan

- Single Family Rental properties (SFR)

Self Directed IRA Maintenance Fees

- $299 per year (for account balances between $0 to $100,000)

- $399 per year (for account balances between $100,001+)

How You are Paid Back

- Rental (or other passive) income

- Capital appreciation

- Repayment on loans

- Interest payments

Personally, I think the fees for Yieldstreet are high – but then again, if you want to take a risk for a potentially high return, you’ll have to pay for it.

To give you an example, if you invested in an S&P 500 index fund, your fees would probably be around 0.05%.

Then again, the S&P 500 is also not as risky of an investment as the alternatives offered through Yieldstreet.

Before you invest, always do your research and know what you’re getting into.

Yieldstreet Returns


A reason why Yieldstreet can be so appealing is because of the platform’s potential returns.

Yieldstreet’s average return is 9.71% and it offers target returns ranging up to 25%.

Below is a better picture of Yieldstreet’s net annualized returns, as of Mar 28, 2022.

Yieldstreets Net Annualized Returns

In this case, you can see that net annualized returns have steadily increased each quarter, climbing to 9.71%.

Of course, there is no such thing as a free lunch. 

And in Yieldstreet’s case, to achieve these high potential returns, you must be willing to increase your investment risk. 

Here are some investment risks you should be aware of:

  • High fees
  • Minimal liquidity 
  • Little to no regulation
  • Borrowers that can’t repay your loan (default risk)
  • Unexpected industry fluctuations in value (market risk)

High returns mean high risks – and that can happen to anyone investing in anything.

Yieldstreet Offerings


Yieldstreet gives both accredited and non-accredited investors the chance to invest. 

If you are an accredited investor, you will have more investment options.

Here’s a list of the Yieldstreet offerings you can pursue:

  1. Thematic Funds
  2. Single Offerings
  3. Structured Notes
  4. Short Term Notes
  5. Income Offerings
  6. Growth Offerings
  7. Balanced Offerings
  8. Low Minimums
  9. Prism Fund

Let’s take an in-depth look at these Yieldstreet offerings.

1. Thematic Funds


Thematic funds are funds with a central theme (like crypto, income, art, geographic locations, etc.).

An example of a thematic fund could be funds invested in oil tankers, luxury car leasing portfolios, or the art equity fund.

Yieldstreets Thematic Funds

Yieldstreet’s art equity fund invests in recognized, multi-million dollar artwork from popular artists such as Banksy.

If you take a look at the art investment platform Masterworks, investment minimums are typically $500 – and you don’t have to be an accredited investor. 

If you invest in the Yieldstreet art equity fund, you’ll have to lock-up your money for about 5 years.

Yieldstreets Art Equity Fund

If you click on the art equity fund hyperlink itself, you’ll find out more about the offering. 

For example, you’ll see which artists and their respective artworks are invested in the fund:

Yieldstreets Art Equity Fund 2

You’ll also find out more about the target returns, fees, payment schedule, and the tax structure of the investment fund itself.

Yieldstreets Art Equity Fund Target Returns

One thing that I’m not very happy about is the fee structure of this particular art equity fund.

Take a look at the:

  • Incentive fees
  • Target annual returns
  • Investment share in excess profits

In addition to paying Yieldstreet 2% per year in an annual management fee, if the art equity fund outperforms the target annual net return of 16% to 20% – Yieldstreet will take an additional 15% (the incentive fee).

Of course, incentive fees can be beneficial, since Yieldstreet should have extra motivation to make you more money.

However, I think that the 15% incentive fee plus the 2% annual management fee can really eat into your profits.

2. Single Offerings


A single offering is a fund that you select from a list of either debt or equity offerings with different return profiles.

One example of a single offering is the Tucson Multi-Family Equity I fund.

Yieldstreets Tucson Multi-Family Equity Fund

Yieldstreet’s Multi-Family Equity I fund invests in a 94% occupied multi-family property complex in Tucson, Arizona.

If you invest in this particular Multi-Family Equity I fund, you’ll have to lock-up your money for about 3 years.

Yieldstreets Tucson Multi-Family Equity Fund Term

You can find more information by clicking on the offering hyperlink. 

For example, you can see the potential track record of multi-family investment properties:

Yieldstreets Multi-Family Investment Records

Yieldstreet also provides an overview of what they dub as the “neighborhood radius.”

Yieldstreets Neighborhood Radius

You can also learn more about the the financials of the multi-family complex as well as target returns, fees, etc.

Yieldstreets Multi-Family Target Returns

Since this is a real estate investment fund, you can expect to earn quarterly passive income through dividend payouts.

This passive income can either be reinvested or you can use it to supplement your cash flow.

3. Structured Notes


A structured note is a debt investment. The performance of the structured note is based on the performance of an underlying asset (like the S&P 500).

While you can make a lot of money with structured notes, the risks are high (and so are the costs). 

Yieldstreets Income Notes Consumer Portfolio

One example of a structured note offered by Yieldstreet is the Income Notes Consumer Portfolio I. 

This structured note is focused on consumer debt and its performance is based on the following stocks:

  • eBay
  • Meta
  • Starbucks

If you invest, your money would only be tied up for 9 months – which is considerably less than the 5+ year lock-up periods of other investments.

Yieldstreets Income Notes Consumer Portfolio Term

If you expand the information, you’ll learn more about this investment.

For example, you can learn how structured notes (debt investments) actually work, relative to equity investments.

Yieldstreets Structured Notes Portfolio Returns

Some goals of structured notes include:

Compared to stock investments (aka equity investments), structured notes have built-in downside protection.

In other words, if a stock takes a nose-dive due to a recession, the downside of a structured note will be limited.

Lastly, you can also learn more about the financial information of this investment:

Yieldstreets Structured Notes Target Returns

Remember to only invest as much as you are willing to lose.

4. Short Term Notes


Short term notes are a debt obligation (like a loan) that a business must pay typically within 1 year.

For example, Yieldstreet offers the Ultra Short Term Note LIV:

Yieldstreets Ultra Short Term Note LIV

You can get your money back after just 3 months of investing in this ultra short term note.

After the 3 months are up, you can earn your money back.

Yieldstreets Ultra Short Term Note Term

Typically speaking, with an ultra short term note like the one above, you can earn yields higher than savings or money market accounts.

You can also learn more about the financial information for each short term, such as the items listed below:

Yieldstreets Ultra Short Term Note Target Returns

Personally speaking, I like how yields are 3% (much higher than high yield savings accounts) and I like that you won’t be charged management fees.

5. Income Offering


Income offerings are investments that generate passive income through periodic distributions.

Yieldstreet recognizes that many investors seek to invest their money into income generating assets.

That’s where the income offerings come into play.

An example of an income offering is the Asia Debt Opportunities Fund I:

Yieldstreets Asia Debt Opportunities Fund

This fund’s purpose is to invest in developing and developed Asia.

The fund aims to invest in about 25-30 opportunities that are secured by either businesses, hard assets, or other collateral.

Yieldstreets Asia Debt Opportunities Fund Term

If you invest in this particular fund, your money can be locked up to 5.5 years.

However, it appears that after 3 years of being invested in this fund, you can gain access to some portion of your investment.

Always make sure to learn more about the financial information for each fund:

Yieldstreets Asia Debt Opportunities Fund Target Return

While the annual management fee (1.25%) is less than other alternative funds (typically 2%), notice the incentive fee.

If this fund outperforms the target annual net return of 16% to 18%, then Yieldstreet will take an additional 10% (the incentive fee).

While incentive fees can be beneficial, I personally think the 10% is a big bite out of your potential net return.

6. Growth Offering


Growth offerings are funds that are expected to appreciate in value during the target term.

One great example of a growth fund is the Enhanced Crypto Fund.

Yieldstreets Enhanced Crypto Fund

This fund provides you with exposure to some of the top crypto names (when it comes to market capitalization).

There are 3 reasons why I like this particular growth fund:

  • It’s fairly liquid
  • Your potential annualized returns are 25%+
  • You can hold crypto in an IRA (tax-advantaged)

If you’re willing to take the risk for a potentially high return, this crypto fund could be a good growth fund option for you.

Below is a list of the top crypto holdings in this fund:

Yieldstreets Enhanced Crypto Fund Breakdown

Basically, this fund is like an index fund, the only difference is that it’s just specialized in crypto.

And generally speaking, you can make a lot of money by investing in crypto, as shown in this chart, here:

Yieldstreets Enhanced Crypto Fund Breakdown 2

Finally, you can learn more about the fund by taking a look at target returns, fees, etc.

Yieldstreets Enhanced Crypto Fund Target Return

Just keep in mind that crypto is very volatile, so make sure you are comfortable investing only as much as you are willing to lose.

7. Balanced Offering


A balanced offering combines both the growth and the passive income concepts.

Balanced Yieldstreet investments focus on value appreciation during the given term while also distributing income.

One example of a balanced offering is the Nashville Multi-Family Equity I.B:

Yieldstreets Nashville Multi-Family Equity IB

This particular fund invests in a 95% occupied luxury apartment complex in Nashville, Tennessee. 

Assuming you invest in this offering, your cash can be tied up for up to 5 years.

Yieldstreets Nashville Multi-Family Equity IB Term

If you want to learn more, then click on the hyperlink to expand the information about this fund.

For example, you’ll find the financial information for the previous few years:

Yieldstreets Nashville Multi-Family Equity IB Financial Information

According to Yieldstreet, the rents have increased by 12.3% in submarkets and are expected to increase by 4% through 2025.

Increased rents mean increased cash flow for you.

Lastly, always make sure to review the basic financial information.

Yieldstreets Nashville Multi-Family Equity IB Target Return

The good news here is that the target cash distributions for investors are expected to be around 7% (so you receive 7% of annualized income from the property rents and from capital appreciation).

8. Low Minimums


The low minimums tab will show funds that require an initial investment of $5k or less.

I’ve noticed that a majority of low minimum funds are ultra short term notes:

Yieldstreets Low Minimums

If you don’t remember what a short term note is, then these are typically debt investments.

In this case, you’ll see that the short term notes typically pay investors back within 3 months to 1 year:

Yieldstreets Low Minimums Terms

While some short term notes offer 3 months terms, others offer 6 months:

Yieldstreets Low Minimums Terms 2

Below is another example of a short term note, this time the term is 9 months (notice the yield is higher):

Yieldstreets Low Minimums Terms 3

Each of these short term notes are accepting minimums of $500 or more.

Now, you’ll also find other funds that offer minimum investments of less than $5k, such as the following:

Yieldstreets Low Minimums Other Funds

In the end, it’s really up to you to determine whether these investments are suitable for your financial situation and whether you are willing to take the risk (and pay the typically high fees).

9. Prism Fund


Non-Accredited investors can have a slice of the pie, with Yieldstreet’s recent addition of the Prism Fund.

Yieldstreet Prism Fund

The Prism Fund seeks to produce income by investing in alternative assets for a minimum investment of $500.

The main difference is that the Prism Fund lumps all alternative investments into 1 bucket and you don’t have the choice to invest individually in 1 alternative asset class over another. 

Yieldstreet Prism Fund Asset Allocation

To go into further detail, below you can see each of the fund’s Top 5 holdings, based on value:

Yieldstreet Prism Fund Top 5 Holdings

Generally speaking, the “consumer” asset class deals with consumer installment loans (like auto loans, mortgages, etc.) and cash advances. 

As of mid 2022, the Prism Fund has just under $100 million of assets under management.

Yieldstreet Prism Fund AUM

Below are some things to keep in mind for the Prism Fund:

  • Highly illiquid  
  • Passive income

As it relates to liquidity, Yieldstreet did mention that the Prism Fund Board of Directors may offer investors an opportunity to liquidate a small portion of their investments.

The Prism Fund expects to send you passive income each quarter, generating a roughly 8% annualized rate of return.

When you receive the distributions, you can either:

  • Reinvest the distribution; or
  • Take distributions as cash to supplement your cash flow

Below are some additional facts and features you may want to know about the Prism Fund:

Yieldstreet Prism Fund

Open To

Anyone

Minimum Investment

$500

Annualized Rate of Return

8%

Fees

- 1% (annual)

- 0.50% (administration)

Fund Type

Closed-End

When Fund Ends

March 2024

Fund Investments

- Art

- Legal

- Corporate

- Consumer

- Real Estate

- Commercial

You may have read that the Prism Fund is a closed-end fund. Here’s what that means:

In other words, no new shares will be created.

Any money that’s raised will be used to fund the initial investments.

fiona smith the millennial money woman

The Bottom Line:

The Prism Fund helps non-accredited investors gain access to alternative asset classes with a minimum of just $500. The fund’s main objective is to produce passive income. However, the fund is not as liquid as other investment funds.

Yieldstreet Usability & Interface


To be very honest with you, I really like the Yieldstreet interface.

It’s extremely user-friendly, intuitive, and it does a great job of displaying the most important information in a neat and organized fashion.

Yieldstreet Interface

Here’s what I really like about the Yieldstreet:

  • It’s easy to link your bank account
  • The website platform is easy to use
  • You can easily access a virtual chat associate

Yieldstreet’s platform is laid out into 5 main sections:

  • Learn Section
  • Activity Section
  • Portfolio Section
  • Offerings Section
  • Accounts Section

If you’re just starting to invest, then you’ll probably spend the majority of your time in the Offerings Section, browsing investment options.

Yieldstreet Customer Service Review


I’ve personally reached out to Yieldstreet’s customer service to evaluate their:

  1. Knowledge
  2. Friendliness
  3. Customer experience

Below is my evaluation:

Category Rating

Knowledge

⭐️⭐️⭐️⭐️⭐️

Customer Experience

⭐️⭐️⭐️⭐️

Friendliness

⭐️⭐️⭐️⭐

One thing I wasn’t too keen on was their phone support.

Instead, you need to first send an email to: Investments@Yieldstreet.com, request a time to chat, and leave a call-back number.

Here’s an example of my email to Yieldstreet:

Yieldstreet Email Example

Within a few seconds of sending my email to the Yieldstreet customer service team, I received an automatic confirmation email from Yieldstreet:

Yieldstreet Email Reply

I received an email response within 48 business hours of sending my initial request.

Yieldstreet Email Reply 2

The email prompted me to schedule a call using a Calendly link with one of their investor relations representatives.

Yieldstreet Calendly

So, I went ahead and scheduled my 15-minute call a week from today, since most slots were 100% booked up (and I thought this to be a little annoying).

Yieldstreet Calendly 2

Next, you can fill out any information that you’d like to discuss on the call, so that the representative can be prepared to talk to you.

And finally, once you’ve entered your information, you can go ahead and schedule the event to receive your confirmation email.

Yieldstreet Confirmation Email

Exactly 24 hours before my call with my YieldStreet representative, I received a reminder text message, which I was very thankful for.

Yieldstreet Text Message

The conversation turned out to be on a Google Meet space, so I had to first download the app on my phone before hopping on the conference call. 

My rep knew what she was talking about and she was very concise with her answers.

The only downside was that it took 11 days to schedule the call.

The VA is like a chatbot that tries to help answer general questions.

Yieldstreet VA

While the Virtual Associate probably can’t tailor its responses to specific questions, it should help you answer general questions fast.

If you send an email, then you should receive a response from a representative typically within 24 hours.

Yieldstreet Contact Information

Email

investments@Yieldstreet.com

Phone

844-943-5378

Social Media

Twitter, Facebook, LinkedIn, Instagram, YouTube

Just keep in mind that Yieldstreet is located in the EST time zone, so depending on where you live, don’t expect an immediate response due to the time difference.

The Yieldstreet Vetting Process


You might be wondering how alternative assets are brought from the market directly to your portfolio. 

In this section, I’ll show you exactly how.

There are 5 main steps that take place to move an alternative investment from the market to your investment portfolio:

  1. Origination & Screening
  2. Diligence
  3. Assessment
  4. Committee Review
  5. Investor Decision

Keep in mind that Yieldstreet literally vets billions of dollars worth of deals and only accepts about 9.29%.

Step #1: Origination & Screening


Screening the investments is the first step to passing the offerings to your portfolio.

The first step is also known as the “origination” step.

Step #2: Diligence


Next, Yieldstreet performs its due diligence, which essentially takes a closer look at the companies that want your cash, their management team, etc.

To put it into plain English: The goal of the due diligence process is to make sure the offering is not a fraud. 

Now, does Yieldstreet always succeed with this? 

No, but then again, nothing is ever guaranteed. 

Of the many factors, Yieldstreet reviews a company’s:

  • Integrity
  • Stability
  • Experience
  • Track record
  • Exit strategy
  • Infrastructure
  • Overall strategy
  • Management team
  • Alignment of interest

Additionally, Yieldstreet aims to review a company regularly.

Step #3: Assessment


Step 3, the Investment, comes down to you – the investor.

This is the point where you can review the current offerings on Yieldstreet’s investment portal and decide whether these deals align with your needs.

Yieldstreet Open Offerings Example

The above screenshot is an example of some investor deals on the platform.

Step #4: Committee Review


Step 4 takes your performance into account.

This is where you can track and monitor the performance and the passive income (if any) that’s generated from your portfolio.

Your Investor Profile should help detail your portfolio’s performance over time with easy-to-read images like the one below:

Yieldstreet Portfolio Performance Example

Remember that most passive income is paid on either a monthly or quarterly basis.

Step #5: Investor Decision


And finally, the last part of the process, Step 5, has to do with reinvesting your profits (if any).

This is the point where you decide whether you want to reinvest your earnings with Yieldstreet or if you want to withdraw your cash.

The Risk Tolerance Questionnaire [RTQ]


One of the most important documents in the onboarding process is the RTQ – the Risk Tolerance Questionnaire.

Some examples of such investment preferences include:

  • Portfolio size
  • Investment time horizon
  • Comfort level with taking risk
  • Willingness to sustain market volatility

Yieldstreet also offers a [very abbreviated] version of an RTQ for investors like you.

However, it’s not mandatory for you to complete the questionnaire (and I think everyone should complete it – especially because it’s only 2 questions long).

Yieldstreet RTQ

If you click on the “Create a personalized dashboard” button, you’ll be brought to the brief RTQ.

First, you’ll answer whether you’ve had any prior experience with investing in alternative investments.

Yieldstreet RTQ 2

Regardless if you did or didn’t have prior investing experience, the next question will ask you about your current investment portfolio size.

Yieldstreet RTQ 3

Keep in mind that this number should not include the value of your primary home. 

Once you select a portfolio size for yourself, you’ll be sent to the sign-up page.

Once completed, you will be directed to complete the sign-up process (which you can follow in my section later in this passage titled, “How to Open an Account with Yieldstreet”).

After creating your profile, you can opt to select your own investing goals, if you go to the “Offerings” tab and then click on the “Matches Goals” tab.

Yieldstreet Matches Goals

Once you click on the “Matches Goals” tab, you will be prompted to click on the “Offerings Selector.”

Yieldstreet Offering Selector

When you click on this button, you will be asked several multiple-choice questions so that Yieldstreet can better determine the type of investor that you are.

Yieldstreet Question 1

For example, you’ll be asked what your financial goals are.

Yieldstreet Question 2

You’ll also be asked about your minimum required target returns.

Just keep in mind that the higher your return, the more risk you’ll likely have to take.

Yieldstreet Question 3

Yieldstreet will also ask you about your liquidity preferences – how long you feel comfortable keeping your money locked up in your investments.

Yieldstreet Question 4

Of course, you’ll also have to provide the amount of money you’re willing to invest so that Yieldstreet can match you with the proper investments (each investment has different minimums).

Yieldstreet Question 5

Since it’s not always recommended to put all of your eggs in one basket, Yieldstreet also asks you how much money you are willing to invest in any 1 investment.

And after you’ve answered these 5 questions (which I believe are already a step-up from the original, 2-question RTQ), Yieldstreet will suggest several investment funds that match your goals:

Yieldstreet Suggested Investment Funds

I actually really like the Matching Goals feature – because Yieldstreet matches its alternative investments to what you’re really looking for.

Yieldstreet IRA Accounts


When you open a Yieldstreet account, one of the first things you’ll have to decide is the type of tax status you want your Yieldstreet investments to have.

Yieldstreet IRA

The Yieldstreet IRA comes with what is known as checkbook control.

As you may have guessed, the most tax-efficient investment account is the Yieldstreet IRA.

The fee depends on how much money you deposit, as shown below.

Yieldstreet IRA Pricing

I was pleasantly surprised to hear that Yieldstreet supports a wide range of IRAs – not just a pre-tax (or traditional) IRA:

Yieldstreet Supported IRAs

Depending on your tax situation, you may want to opt for a Roth IRA over a Traditional IRA (which is what I would do, in my situation). 

In addition to Roth and Traditional IRAs, you can also invest in Yieldstreet using Rollover IRAs. 

If you do want to invest using the Yieldstreet IRA, then you’ll have to determine the type:

Yieldstreet IRA Traditional or Roth

Once you select the type of IRA – Traditional versus Roth – you’ll have to proceed and complete your personal information (name, address, etc.)

Generally speaking, you can expect to start investing about 7 business days after you’ve opened your Yieldstreet IRA.

Yieldstreet Safety Features


Yieldstreet takes its clients’ personal information very seriously and will do everything possible to protect it.

Here are 3 Yieldstreet safety features:

  1. FDIC Insured funds
  2. Two-factor authentication
  3. Encrypted personal information

Let’s take a closer look at what each of these features entails:

1. FDIC Insured Funds


Since I like knowing that my money is protected, I’m a very big fan of Yieldstreet’s FDIC insured Wallet.

The Yieldstreet Wallet is a cash account within your Yieldstreet portfolio that’s FDIC insured through Evolve Bank & Trust.

Evolve Bank and Trust

In other words, up to $250,000 worth of cash can be insured (per account owner) according to FDIC regulations.

The Yieldstreet Wallet interest rate was just raised from 0.2% to 0.63% as of mid-2022.

2. Two Factor Authentication


In addition to using top-notch encryption, Yieldstreet also gives you the chance to establish 2FA (Two Factor Authentication).

Authy 2FA

To provide the 2FA, Yieldstreet uses Authy, a top-rated app in the field.

Just keep in mind to prepare additional safety measures in the case you lose your phone – which would mean you may not be able to access your Yieldstreet account.

3. Encrypted Personal Information


The personal information you input into your Yieldstreet account is encrypted by SynapseFI.

SynapseFI

SynapseFI is a nationally recognized and top-ranked financial platform with over 11 million users that offers end-to-end encryption for financial data.

Your financial data is not stored and Yieldstreet cannot see your banking log-in data, even when you link your bank account to your Yieldstreet Wallet.

Yieldstreet Educational Resources


Yieldstreet understands that every investor is different.

That’s why the platform has created a list of educational resources:

Resource Description

Listen to the latest Yieldstreet episodes, which talk about anything from current economic conditions to the latest FinTech trends

Learn about investing basics - especially as it relates to alternative investing.

Learn about the latest market trends, thoughts from Yieldstreet leaders, and other investing insights

Learn about engineering, hackathons, design systems, etc.

Learn about anything from getting started to tax management and crypto investing

Watch interviews with top advisors (not just from Yieldstreet) talk about the current market conditions

Account Statements

Sent monthly & quarterly to you to review your account holdings, returns, and investment status

For those of us who prefer to learn by watching or listening, that’s where Yieldstreet’s webinars and podcasts can come in handy.

Yieldstreet Youtube Webinar Recording

In the screenshot above, you can see one of the latest YouTube webinar recordings, discussing NFTs. 

You can access the Webinars by clicking on the “Learn” tab, then the “Blog” tab, and then the “Webinar” tab. 

To access the podcasts, you can click on the “Learn” tab, then the “Resources” tab, and then scroll down to access “The Yield” podcast show.

The Yield Podcast

Most of the time, the podcast links should also be listed next to the YouTube webinar video.

As you can see, Yieldstreet certainly does a great job in providing you with plenty of educational information.

Yieldstreet is Best For:


Yieldstreet might not be the right fit for everyone. 

Yieldstreet might be a good option for you if:

  • You don’t need liquidity
  • You want to earn passive income
  • You’re comfortable taking some risk 
  • You’ve paid off major credit card debt
  • You have a liquid emergency savings fund
  • You’re already contributing to retirement accounts
  • You’re an accredited investor wanting to diversify your portfolio
  • You’re a non-accredited investor wanting to diversify your portfolio

Alternative investment platforms like Yieldstreet are typically designed for intermediate to advanced investors.

Yieldstreet By the Numbers

So, if I were just starting out with investing (like paying off credit card debt, starting to contribute to my 401(k), etc.), Yieldstreet probably would not be a good fit. 

If you’re a new investor, then you should invest in index funds or at least first build a solid financial foundation.

How to Open an Account with Yieldstreet


Ready to open an account with Yieldstreet?

First, head to the Yieldstreet website, and click “Sign Up.”

How to Open a Yieldstreet Account

The next step is to choose from 1 of 2 options: 

  • You can talk about your investing preferences first
  • You can skip the “small talk” and jump straight to the sign-up section

Personally speaking, I always prefer to explain first what my investing preferences are before jumping into anything, so I would click on the first option.

How to Open a Yieldstreet Account 2

The first question (out of 2 total questions) will ask you about your experience investing in alternative assets. 

Whether you have or haven’t invested in alternatives before, the next question is about the size of your current portfolio:

How to Open a Yieldstreet Account 3

After you’ve answered this question, you’ll be lead to the official sign-up page.

How to Open a Yieldstreet Account 4

You have 3 options to sign-up with Yieldstreet:

  • Email
  • Apple
  • Google

Since I prefer signing up by email, I’m going to use this option. You’ll have to include your standard information – ranging from your name to your email address. 

Once that’s done, make sure to verify your email address (you’ll be sent an email within seconds of inputting your email address).

How to Open a Yieldstreet Account 5

Once you click on the “Verify Email” button, you’ll be led back to the Yieldstreet sign-up process. 

First, you’ll have to self-attest whether you are an accredited or non-accredited investor.

How to Open a Yieldstreet Account 6

Remember, an accredited investor is someone who falls in the first 4 categories. 

If you don’t fall in the first 4 categories, then click “None of the Above.”

Once you select the option that matches your profile, you’ll be led to your investor dashboard.

Yieldstreet Investor Dashboard

Now, you will have to complete several additional steps before you can invest your money. 

Here are the 4 steps you need to complete before investing with Yieldstreet:

  1. Verify your identity 
  2. Link your bank account to the Yieldstreet Wallet
  3. Determine the account status (taxable or tax-deferred) 
  4. Browse the investment options & make your first alternative investment

Regardless of which of the 4 options you click on first, Yieldstreet has its own process, so you’ll always be led to first select the type of account you want to establish.

The good news is that you can select from a variety of different Yieldstreet accounts:

Yieldstreet Goals

Keep in mind that if you invest in an IRA, then your profits and gains will be tax-deferred (in other words, you only have to pay taxes in the year that you withdraw your investments). 

The next step is to verify your identity (name, address, phone number, etc.). 

You’ll also have to upload your identity documents.

Yieldstreet Account

To upload your personal documents, you can either:

  • Take a picture of yourself 
  • Upload an existing photo of your US government ID

If you did state that you’re an accredited investor, then you’ll also have to verify your accreditation status.

Yieldstreet Verify Accrditation

There are typically 3 main ways to verify your accreditation status:

Verification Method Details

Your Income

2 most recent W2s, K1s, or 1099s, or tax returns

Your Net Worth

Documents showing your detailed net worth of $1 million+ (excluding primary residence), such as:

- Bank statements

- Brokerage account statements

- Business ownership documentation

- Third-party statements from acceptable institutions

- Credit report to disclose liabilities

Third-Party

Letter must be written by people like:

- Your CPA

- Your lawyer

- Your broker dealer

- Your financial advisor

- Your investment advisor

Once your documentation is uploaded, Yieldstreet explains that it typically takes up to 5 business days for the information to be reviewed and approved.

Next, you can connect your bank account with Yieldstreet. You can do so by directly logging into your bank account through Yieldstreet. 

Just make sure that the bank account you link is ACH-compatible.

Yieldstreet Link Bank Account

Once you find your bank, you can provide your account details and connect your Yieldstreet portal with your bank account.

Furthermore, Yieldstreet states that even though your bank account will be connected to your Yieldstreet Wallet, Yieldstreet will never have direct access to your bank account.

After completing these additional steps, you should be ready to start browsing the Yieldstreet platform and investing!

Is Yieldstreet Worth It?


Not many people can say they invest in exclusive alternative investment classes.

Yieldstreet is the game-changer.

Now, both accredited and non-accredited investors can invest in non-traditional assets ranging from marine to real estate.

Here’s how you use Yieldstreet:

  1. Sign-up online 
  2. Determine whether you are accredited or non-accredited
  3. Begin investing in alternative investments

If you decide to invest with Yieldstreet, then it’s important that you only invest as much as you are comfortable losing.

fiona smith the millennial money woman

The Bottom Line:

Keep in mind that your investments are not guaranteed and that alternative investments are speculative, expensive, risky, and illiquid. However, the more risk you take on, the more potential profit you could earn.

Yieldstreet Alternatives


Not sure if investing in an array of risky, alternative asset classes is the right next step for you? 

Here are other, more specialized and potentially lucrative alternative investments:

Just remember to always do your research – no matter the investment type – before you commit financially.

FAQs

Yes, Yieldstreet is a legit alternative investment platform with the goal of making non-traditional investment options (like marine life projects, fine art, collateralized debt obligations, etc.) available to a broader public. You do encounter some risks, however, such as long lock-up periods, high fees, and default risk.

Yieldstreet was founded in 2015 by Milind Mehere and Michael Weisz, both of which have extensive experience in the tech, venture capital, and hedge fund industries. In 2019, Yieldstreet’s membership grew to 100,000, and in late 2021 membership expanded to 325,000 with over $2.5 billion in investments.

The Yieldstreet Prism fund is available to many US investors. While your returns are not guaranteed, the Prism Fund invests in an array of asset classes, ranging from legal to real estate. A goal is to generate passive income, however, you must be cognizant of the 1.5% fees, which can eat into your overall return.

Yes, if you keep cash in your Yieldstreet wallet for later use, then your cash is FDIC insured through Evolve Bank & Trust, which is headquartered in Memphis, Tennessee. Accounts are insured for up to $250,000 per owner.

Yieldstreet is an online crowdfunding platform that specializes in alternative investments ranging from marine projects and real estate to fine art. For the most part, Yieldstreet is a platform for accredited investors, but anyone can invest using the Prism Fund.

Yieldstreet is an alternative investment platform that offers publicly non-traded REIT investments to its investors. However, Yieldstreet itself is not a REIT.

Yieldstreet Review: The Bottom Line


If you have extra cash sitting on the sidelines that’s burning a hole in your pocket, then Yieldstreet might be a good opportunity to invest.

While minimum investments vary, if you are an accredited investor, you can expect to buy into Yieldstreet with a minimum of $10,000 to $50,000.

If you are a non-accredited investor, then your minimum investment is typically around $500 to $1,000 for the Prism Fund.

If you’re an accredited investor, then you have access to a very broad range of asset classes, such as:

  • Art
  • Legal
  • Marine
  • Consumer
  • Real estate
  • Commercial

While these asset classes do provide you with a diversified portfolio, remember that many non-traditional investments come with unique risks not normally known to “just” S&P 500 investors (for example).

Some unique risks you may encounter include:

  • Illiquidity
  • High fees
  • Market risk
  • Default risk
  • Minimal to no regulation

With that said, Yieldstreet’s potential returns range anywhere from 3% to 25%+, with its most recent net annualized returns yielding 9.71%.

Now I’d like to hear from you:

What are your thoughts on Yieldstreet?

Would you consider investing in the platform?

Let me know in the comments section below.

Fiona Smith
Fiona Smith
Fiona Smith is the founder of The Millennial Money Woman. She holds her Master of Science Degree in Personal Financial Planning, has advised decamillionaires for 6 years in the corporate wealth management sector and has co-founded a local non-profit community teaching financial literacy. She is the author of the personal finance book How to Get Rich from Nothing and her work is featured on Forbes and FinCon.

Leave a Comment

Your email address will not be published. Required fields are marked *

Get free access to exclusive finance tips, wealth building strategies, investing guides, and much more 👇

fiona smith the millennial money woman

Want to make more money?

Get free access to Fiona’s latest financial tips, wealth-building strategies, investing guides, millionaire planning, and much more.