Generic Investment Post
There are multiple ways of investment and managing your fund. I am no fund expert nor am I trained on any certified level.
The levers I know are as following:
1) Real estate - rental income
2) Stocks & ETFs - company, industry dependent
3) Bitcoin - future potential of a decentralized currency
To dive deeper -
Real estate
You don't have real rental income until you actually own one, and rent one out. Essentially, you need to have 2 properties to start this. Staying in one then selling it for another better place is not passive income. In prime location and prime cities, it is no longer easy to find rents that will match, let alone exceed your mortgage payments. That said, unless you have a high downpayment (20-30%), paying some to top off your rental income is highly possible.
Stocks & ETFs
Fortunately and unfortunately, this is the most volatile time but also the most exciting time. There is a lot to gain, and also a lot to lose. I've lost the most here. Timing the market does not work - that is literally gambling. However, I have also gotten the most fun out of this, if you like numbers, your stress levels can fluctuate similar to your lost/earnings.
There are many levels here to play:
- market index such as DJIA, S&P
- industry specific index such as banks, oils, real estates ETF
- company specific stock such as FANG
The market has swung wildly in both direction, holding power and capital is key in this unfortunately, you can use 2x or 4x leverage but need to execute in a discipline manner.
Bitcoin
The future that is uncertain and yet very promising. The idea of a decentralized currency is deeply intriguing. The way the government has "printed" money to help cash flow but create more debt has cause people to rethink the role of the centralized government.
The levers I know are as following:
1) Real estate - rental income
2) Stocks & ETFs - company, industry dependent
3) Bitcoin - future potential of a decentralized currency
To dive deeper -
Real estate
You don't have real rental income until you actually own one, and rent one out. Essentially, you need to have 2 properties to start this. Staying in one then selling it for another better place is not passive income. In prime location and prime cities, it is no longer easy to find rents that will match, let alone exceed your mortgage payments. That said, unless you have a high downpayment (20-30%), paying some to top off your rental income is highly possible.
Stocks & ETFs
Fortunately and unfortunately, this is the most volatile time but also the most exciting time. There is a lot to gain, and also a lot to lose. I've lost the most here. Timing the market does not work - that is literally gambling. However, I have also gotten the most fun out of this, if you like numbers, your stress levels can fluctuate similar to your lost/earnings.
There are many levels here to play:
- market index such as DJIA, S&P
- industry specific index such as banks, oils, real estates ETF
- company specific stock such as FANG
The market has swung wildly in both direction, holding power and capital is key in this unfortunately, you can use 2x or 4x leverage but need to execute in a discipline manner.
Bitcoin
The future that is uncertain and yet very promising. The idea of a decentralized currency is deeply intriguing. The way the government has "printed" money to help cash flow but create more debt has cause people to rethink the role of the centralized government.
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