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What Are the Risks Associated with Mezzanine Lending in Retirement Accounts?
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Good question.
Mezzanine lending carries higher risks than traditional retirement investments. Due to their subordinated position, mezzanine loans are more likely to default in case of borrower insolvency. Additionally, mezzanine lending typically has less liquidity than stocks or bonds, making it more challenging to sell your investment quickly if needed. It's crucial to weigh these risks against the potential rewards before including mezzanine lending in your retirement account.
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