Money Matters: a look into limited partnerships

Nov 23, 2010

You may be noticing more ads tempting investors to enter into limited partnerships. The scheme is looking pretty attractive in the down economy. But KPLU's Money Matters commentator Greg Heberlein says they come with risks.

Greg says when investors compare the potential returns of limited partnerships investment (or 'master' limited partnerships) with more traditional savings and bond investments, they can look like a quicker way to make money.  

Most commonly, the investments are in real estate, but he says you'll also find them in the areas of natural resources, and companies such as storage facilities. 

Limited partnerships offer to return of 5% to 7%.  Greg says to be careful, as the reason 7% returns are offered is because the risk is higher.  He says it's important to do your homework on the investment.

Have you had success with limited partnerships? Many have. Or perhaps you feel you've been burnt. What's your advice?