Cash is king!
This real estate investment aphorism perfectly describes the little-known method of the rich actually use to collect millions of dollars. This report shows 20 sources of income from capital. Insert one or all of these sources on the spot and sit and watch the dollars roll, with no (or very little) more effort on your part.
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If you really want to get rich and live a life of luxury, then you have mastered the ability to generate cash flow from passive incomeSources. Without this ability, your income to traditional methods of earning money, such as working hours are limited. Work is not released by the need to work. You need to do something different to the entire income from work is necessary to achieve the lifestyle that you want to receive life. Passive Income is the key.
Before you begin an investment plan, the first rule is to consult a qualified financial adviser. Speaking of your plan and options that you may not have seenconsidered, is to protect your capital in the extreme, and protect against possible loss whiule multiplying your return.
This article does not take into account the cost of entry into an investment, not look back. These vary - perhaps every year or even in a year-dependent economy as a whole, the conditions to the SEC and other regulators and the IRS. This article considers only the 20 possible sources of income from capital isneed to perform further tests to determine whether an investment is appropriate for you.
1 ETFs - Exchange Traded Funds - This is a fund that tracks the performance of an index like the Dow Jones and Standard & Poor's 500 Index, a basket of goods and tracks goods. Trading in the same way that a stock is the price varies depending on the business requirements of day. The advantages of owning an ETF is that you can buy, short, buy on credit and buy a minimum of 1 share. Expense ratios areoften lower than mutual funds. A municipality is called Spider ETF - SPDR - and tracks the S & P 500 Index. Look for the symbol SPY for research or to buy.
2 REITs - Real Estate Investment Trust - One of my favorites, because the investments you own a piece of property (or mortgage) the trust also invests in this trade as shares on the stock exchange. REIT buys a stock ownership (equity) in the properties, while mortgage REIT buys mortgages on the property. Two advantages for the ownerA REIT is the tax advantages and the liquidity of the stock - it's business as a warehouse.
3 Oil Gas and confidence of Canada - This is an organization in the oil / gas and mining or production, and may have invested in Canada. Many of these are now trading on the (U.S.) American trade. The purchase is the same as buying a stock in another company. Tax breaks are similar to those of a REIT and a big advantage - what I like most - is paying some of these foundationsridiculously high dividends - and they pay every month! You can do your research, find a Canadian oil and gas trust that you like and then invest as much as you: my advice.
MLP 4 - Master Limited Partnership - Do you want a limited partnership, sale or trade can be as simple as a stock? Enter the Master Limited Partnership. These hybrid organizations have limited liability partnerships and allows trading of partnership units - investment fund - just like a warehouse. Whatcould be better? MLP provides a cash flow and distributable income, and these concepts must be mastered and understood before a reasoned decision to be made for the purchase of an MLP for your investment portfolio.
Annuity 5 - Who has not heard of an annuity? But you know how they work? That this simple: an annuity is simply a contract with an insurance company that a certain fixed amount of income to pay for a period to enter into guarantees. You payan annuity at the time of signing and then the insurance company pays the amount of your investment and the "profits" (keep it simple and not with the technical term) for a period of some (or many) years. These are generally considered safe stable investment for a conservative portfolio.
6 TIPS - Treasury Inflation-Protected Securities - are offered by the U.S. Treasury, these securities, which means that the rate of inflation, which is your dividend increases are indexedincreases the rate of inflation. A TIPS pay interest every six months and the principal at maturity. Even a conservative investment policy, you can check if it is kept on guard and protect the capital from the ravages of inflation and prefer both a constant and reliable income, but money can not be at the rate should be found to grow - but then looks aren t 'to capital gains anyway.
Dividend yield 7 - Finally we come to perhaps getbest known method of passive income. Anyone who knows anything knows that Wall Street firms pay for people who own their shares. Right? Well, most of the time when a company well known and established. Many new and small companies caused their revenues to the company instead of paying dividends, and the financial difficulties the company could not pay to grow. So if you're going to have to earn income to buy shares to ensure that the company has a track recordthe payment of dividends. The best-known American companies - commonly referred to as the "blue chips" are also companies that have traditionally paid the best dividends. As with all other investments, research is needed to ensure best capture the dividend and target those companies with the best opportunities in the coming years.
8 Covered Call - This is a passive investment strategy tool that is often considered risky. But it is not. Covered is a call option to sell the shares you buy.You should not sell the stock, you sell just the ability to acquire such shares at a later time and price. The person who buys the purchase of covered call option contract on the price - to which the market actually agree - just set back and forget about it. Well, not really. The person who purchased the option, has the right to have your shares at any time between the moment when he sold the option and the expiration of the option purchase. Writing (selling) a call is covered only investment options, theis considered safe enough by the IRS included in a 401K retirement plan or otherwise. But you must do your homework and understand about the world of options before this method.
9 Real Estate - Everyone knows what is property, and everyone knows - or at least intuitively aware - the big money can be represented by immovable property. Real estate offers tax advantages and the ability to upload your investments - the use, a factor that has limited orlacking in many other investments. Many real estate consultants and gurus insist that the house at a time, or the strategy of pinball or higher, or wholesale fixer method or another flavor of the month, by far the best way to make money in real estate. In general, avoid anything. Making money - that is the massive income - in real estate deals with high leverage that are only a safety in commercial real estate. Residential buildings, office buildings, retailand storage facilities, would supply all commercial properties. Of these, the best strategy to invest in building real. The bigger, the better. This requires knowledge and education rather than the availability of capital required. Capital can always be purchased through the network, but knowledge is the only ingredient that this method of passive investment function. And with a lot of great size, so that income from such property all you need to secure your retirement - today!
Business 10Property - No, that's not what you think. Owning a small business for most people is worse than working 9-5 in your own small business, you get caught up in details and tried to go to the store in search of a market dealing with customers, it quickly becomes more than a full-time job. Okay, if that's what you enjoy doing. But what is meant to start a business or franchise with the short-term goal of delivery to someone to run. The faster you can do this, thebetter. If you can do now the better - more free time for themselves, the more time you have and / or enjoy creating more passive income. A book that will help you get the E-Myth Revisited by Michael Gerber is another four hours of work per week by Timothy Ferris. Both books will help your company's ownership structure in a way that actually run by the same - some margaritas on the beach?
All theseSources require work to establish, but once established, can be structured to handle their hands to be free. The two books referred to in Chapter 10 will help you structure your sources of passive income for truly hands free entry.
11 Private Lending - Private loans have been around people have been around. In essence, private lending is simply borrowing from some of your money in excess for a trustworthy person who needs it. That was not always easy or productive for the person whoHe had the money, they wanted to invest. As a result, many online services are now available to take your money and distribute it in the direction to which you have qualified, looking for one person to borrow more organizations search engines can identify. The main advantage of private loans is that interest rates are often much higher than you would get from parking your money in a CD or a bank.
12 tax liens and Notes - One of the main advantages of tax competitionprivileges is the highest rate you get the investment and the fact that your main, secured by real estate. Please note that you almost never get the property for investing in tax deeds, mortgages, or notes, the main advantage is the favorable interest rate and security that is backed by a real estate transaction. Avoid organizations that receive property tax instrument to propose. Another advantage of this type of passive incomeYou can invest in line for nearly all states in the country - be sure to check the actions Texas tax, the interest can be up to 50% annually in some cases.
Bonds 13 - Ok, you know of bonds - are a conservative investment policy for the elderly and people fear the stock market right? Wrong. A bond can be a safe and stable source of income for all. By definition, a bond is a debt is issued by an authorized body - often, the common or utility companies. A bondsold for the issue price, matures (is paid to you) at the office (the nominal price or symbolic) and you earn interest when in the middle of the coupon. The bonds are often purchased in the form of mutual fund and the pension fund. Some of them can be very profitable, with a return on equity funds, but these are often difficult to find. But there are!
14 Mutual Funds (Income Funds) - Since we consider only sources of income from capital, is seen onlyIncome mutual funds. This can be a "growth and income" funds or "income" funds or "value". Almost all mutual fund families have their income or growth and pension funds. Morningstar Ratings and other third-party services that the fund is used to identify safer and higher pension payments. Investing wisely and always have a qualified investment advisor before investing. Mutual funds are also required, we will send you a prospectus (a formal announcement ofCentral to the objectives and guidelines) for a place, before investing. Please read the prospectus and consult your financial advisor for the terms that can not understand.
15 T-Bills, T-Bonds and T-Notes - Treasury bills, Treasury bills and Treasury notes - is considered the safest of all investments, because they are issued by the U.S. Treasury Department, these vehicles are also among the lowest yield. But you sacrifice performance for security whento invest. Treasury bills, bonds and notes are bought mostly by your bank, broker, or can be purchased directly from the U.S. Treasury Department through its Treasury Direct online service. Although you can not get a high return, may not be the safety of your investment may be higher than what is with these investments.
16 Unit Investment Trust - units of an investment fund is one of three different types of investment companies that are closed-end funds and otherTrust Fund. ITU offer of securities in the form of "units" to represent the unity of its investment portfolio. This portfolio is often a managed portfolio of stocks and bonds. The units are usually used in amounts of $ 1000 and investors, or "shareholders' dividends by units sold in their possession. A unique feature of the ITU, its expiration date. Unlike many other companies, organizations and companies investment exist in the long run, the ITU has defined a terminationDate that is set to start. When you complete at this time, the ITU and the assets will be sold. The proceeds from this sale are then distributed to unitholders.
17 Preferred Stock - A preferred stock is a security by a company, usually issued with a certain rate of dividend. Preference shares typically have no voting rights, except sometimes in extraordinary events. The preferred shares have priority over holders of ordinary shares to dividendsdistributed - the holders of preference shares will be paid first. And holders of preferred shares will also be preferable if the company will never be solved. The return on preferred shares may not be high, but the safety of your investment is higher than for riskier assets.
18 Corporate Backed Trust Securities (CABCO) - Even as the company's asset-backed securities are called, these investments by multinationals and a pool of underlying assets. Cash flow fromthese assets offer dividend payments to holders of the title. The pool of assets can be any type of activity that offers a cash flow. They are usually first sold to a market maker-type of organization as an investment bank, these securities may be sold to the public by the broker. Contact your broker for more information on these types of investments.
19 Music publishing - you do not need to know about music publishing? The artist may have the honor (and oftenmoney), but the publisher makes more money. If you are the rights of a song or notes that you are the publisher and get paid when the song is played or performed in public. Even if they can present rate is only 8 cents (U.S.) for "performance" think about all the radio stations, bars and clubs in the country, where is your song played at this time. Yes, you need bars and restaurants to pay if the song is played in its creation. You do not have to go to worriesto gather around every bar, hotel lobby or an elevator or a restaurant in the country of eight cents (Other places!) - this is covered by one (or combination) of only three organizations that manage virtually all music worldwide treaties - ASCAP, BMI and Sound Exchange Internet. Yes, you need to register with these organizations so you know where to send your checks, but this can be a lucrative passive income.
20 Copyright, patents and licenses -If you are a writer you every time you sell a book you paid. Ok, that's for sure, but you can also publish material that is protected under a new copyright law, if you change or add at least 20% of the material at least 20% more. The easiest part (some would say it is not easy) is writing the book itself. The hard part is getting other people to buy it, that's the marketing that are beyond the scope of this article, but if you can get a best-seller on his hands, the license fees (paymentsYou do not get the owner) can become very high.
A patent is an innovation (process) or invention (what). You get paid when the asset is the patent or sold by any other organization or the public. The patent protects the right to exclusive ownership of the process or invention for a time.
A license can also sell on the market. What happens if a particular method or methods that no one else knows? You canSell this knowledge? Yes you can. And the way it is made of an organization, to your knowledge in the form of a process or a license to use the procedure. Check out inventright.com for instructions on how to do this.
Allowance
21 Obscure Movie & Other Investments - We live in a dynamic world, and there will always be investment vehicles designed for a need. In addition, further investment obscure but generally unknown outside their respective industries. Investments are one of the filmsthis. Movies often require lenders willing to finance the production of the film project. If the movie is released to the public and start earning money to finance their capital and return on investment received. Look how many movies are bad - This may be a good way to make a lot of money if you return a blockbuster or a good way to lose a lot of money. Do not invest in this vehicle, if you're an industry insider.
Other investments include funding dark exploration, waterRights, coal leases, limited partnerships, advertising and commercial financing (yes, TV ads and direct mail), the financing of receivables, property, sports team, etc., etc., etc. If you are interested in investing in each of these areas must find you, someone with excellent knowledge of the field and with a good investment in the sector. Consult closely with them so that they drive your investment decisions. In general, the best policy is to invest only in areas whereThey are familiar and not invest more than you can afford to lose.
Summary
Passive Income is the key to investing for income security. Income is cash flow. Cash flow is king. You can not invest, or expected future income must return or equity, you can only invest money you have at hand today. Similarly, you can not pay your bills or buy food or pay the mortgage or the tax man anything other than cash or credit card. A return is not expected or equity positioncurrently pay the bills or put food on the table. The capital appreciation is great - for tomorrow. I prefer cash in now. The cash flow than you get now, this is the highest it will be tomorrow. Guaranteed!
How to Get Rich III - 20 Sources of Passive Income, Part 1Friend Link : Drink Scented Coffee By A Cobalt Blue Coffee Maker
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