Summary

The article outlines three key investment strategies for generating passive income: investing in real estate through platforms like Fundrise and Yieldstreet, purchasing dividend stocks for consistent returns, and hedging against inflation with cryptocurrencies and precious metals.

Abstract

The author emphasizes the importance of financial freedom and breaking away from traditional employment by investing in oneself and making strategic financial decisions. Real estate investment has evolved, with online platforms offering access to diverse properties and asset classes, making it more accessible and less burdensome than traditional property management. Dividend stocks are recommended for their reliable quarterly payments, which can provide a steady income stream and outperform traditional savings accounts. Lastly, the article advises investing in cryptocurrencies and precious metals as a safeguard against inflation, particularly in the context of the U.S. government's quantitative easing policies.

Opinions

The author values financial independence over traditional employment, viewing a salary as a hindrance to achieving true financial freedom.
Investing in oneself is seen as foundational, providing the knowledge and confidence to make sound financial decisions.
Traditional real estate investment, with its challenges like tenant evictions and potential for crime, is considered inferior to modern platforms that offer a variety of investment opportunities with lower barriers to entry.
Dividend stocks are highly regarded for their consistent and reliable income, outperforming traditional savings accounts that fail to keep up with inflation.
The author expresses concern over the U.S. economy's stability due to excessive money printing, advocating for investments in deflationary assets like Bitcoin, Ethereum, and gold to protect purchasing power.
Cryptocurrencies are portrayed as intelligent investments, with their success partially attributed to high inflation rates in the U.S., and the author suggests that the U.S. economy's current state favors Bitcoin.
A disclaimer is provided that the article's content is not financial advice, and the author discloses ownership

3 Investments to Own For Life (Easy Passive Income)

Become a financially savvy digital nomad and explore the world

I quit my full-time job.

In years past, I never had the knowledge, income or confidence to leave a reliable means of income. Then I realized I was a slave. I was a slave to my wage and it was costing me more money than pursuing a true life of financial freedom.

“A salary is just the drug they give you when they want you to give up on your dreams. “— Kevin O’leary

Knowledge is magic to an ignorant person. Knowledge is even more powerful than wealth, and it will open new doors in your life.

That’s why investing in yourself is the first big investment you should make. It will give you the confidence to stand by your decisions. And these three financial decisions are ones I’ll hold onto for life without any fear.

Invest in Real Estate The New Way

My grandpa owned two apartment buildings when I was a kid.

It was hell.

Evicting tenants was very dangerous. He would bring a shotgun with him when he wasn’t sure if someone would pay their overdue rent. Once there was even a murder in one of his buildings.

In a way, I’m glad he didn’t pass those apartments down to me. They would consume my life. That’s all I would do. Especially since there’s an easier way to invest in real estate anyway.

Websites like Fundrise and Yieldstreet allow anyone to invest in new real estate properties around the world. And they aren’t just limited to real estate but several alternative investments that were once only available to the ultra-rich:

Real estate funds that hold multiple asset classes including, Art, Commercial, Consumer, Legal, and Real Estate.
Corporate preferred bonds.
Multi-family housing projects.
New hotels built in metropolitan areas like New York City.

Some of these investments cost thousands while others are a lot more affordable. I recommend checking out both websites and making a plan that works for you.

Dividends: The Most Guaranteeable Passive Income

There’s only one passive income method you can always rely on 99.99% of the time.

Dividend stocks.

Think of dividend stocks as savings accounts that actually work for you. After all, the bank doesn’t pay you fairly to hold your money. Instead, your interest rate doesn’t beat inflation and you end up burning hundreds of dollars a year.

Banks do not protect our purchasing power.

So, you can place your money in a dividend stock that pays you, no questions asked, four times a year [sometimes more] just for investing in them. That’s not including the money you might make from the stock performing well on its own.

Here are some dividend stocks to consider that consistently perform well:

AT&T

Pays you $2.08 per share annually (7.2% yield)

Texas Instruments

Pays you $3.60 per share annually (2.7% yield)

Prudential Finacnial Inc.

Pays you $4.40 per share annually (5.35% yield)

None of these numbers are sexy, however, if you were to eventually own 100 shares of any of these companies, that’s a guaranteed $200 to $440 in your pocket every year.

As you continue to build your portfolio, dividends will cause your income will snowball. They aren’t glamourous, but they have clear benefits.

Cryptocurrency (or any hedge against inflation)

There’s nothing more important today than protecting your purchasing power.

The U.S. is printing money at an unprecedented rate and instead of prices inflating immediately, we are in a process called “quantitative easing.”

Essentially, it means we’re fixing our country’s financial problems by pumping more money into the economy. Increasing the supply of money, however, lowers the cost of money. Prices of consumer goods aren’t being dramatically driven up yet, but there’s immense pressure against our economy.

The U.S. economy is a balloon, and if it pops we stand to lose everything.

That’s why it’s crucial to invest in deflationary currencies like Bitcoin, Ethereum, or precious metals like gold. The value of gold was up more than 25% in 2020 and Bitcoin more than 160%.

Although Bitcoin and Ethereum have built-in benefits that make them the smartest currencies in the world, they no doubt have to attribute some of their success to high inflation rates in the U.S.

It’s not so much as Bitcoin is winning right now, but that the U.S. is losing. United States Secretary of the Treasury Janet Yellen is known for tolerating high levels of inflation, so, I wouldn’t bet against Bitcoin anytime soon.

This is not financial advice. The author has no positions with any of the stocks or precious metals mentioned. He does, however, own Bitcoin and Ethereum.

Check out my new book, “Mind and Muscle: The Psychological Benefits of Healthy Habits” linked here.