With inflation rates rising and interest rates on the decline, regular income is decreasing in its actual worth. While there is nothing to do about inflation itself, investors can give earning potential a boost with inflation-busting passive income. Foundation Capital offers investment opportunities in the soaring construction industry that can help investors earn money with little maintenance and great security and excellent returns.
Rising Inflation Leaves Investors with Less Real Income
Inflation is making headlines around the world as it has risen from 6% to 9% in more than half of the economies. Rising prices in core areas of budgets and the consequent devaluation of the currency has left investors with a significant granted financial hit in the last two years.
For instance, income is losing real-world purchasing power even as wages are reported to be rising at the fastest rate in years. As the Consumer Price Index continues to soar in both the advanced and developing world, if your regular income has not adequately also increased, you are losing money.
Traditional savings also fail to protect investors as banks have been pressured to boost spending in a post-COVID world. In fact, the European Central Bank has even set a negative interest rate, meaning that account holders across Europe are paying their banks to hold their money.
There are levers investors can pull, in terms of their jobs, investment, and spending, in order to diminish the negative financial impact of inflation. Nevertheless, most of these require major changes and cutbacks that are either risky or excessive. Switching jobs, extreme tracking of expenses, and high-risk investments with little guarantee… might not work for everyone in a world where certainty remains far-fetched.
How Passive Income Can Fill the Gap
There is a reason why the concept of passive income has gained significant traction of late. As a low-effort solution to investing, it generates an effective stream of income with little or no maintenance. Thus, passive income can assist you in keeping inflation and its impacts at bay.
Passive income refers to the money you earn that does not require active effort in terms of money, time, and resources. For example, stocks that pay out dividends, a spare room for rent, a space on your website for selling advertisements, royalties from books… The initial level of effort required varies with each scenario, but the results are the same: a stream of the steady income that builds security over time.
While earlier, the options were limited, there are now various investments to choose from that deliver respectable income streams. Nevertheless, the increasing number of options also comes with challenges in choosing the right stream of investments. Modern options, such as shares, Initial Public Offering (IPO), cryptocurrency, or microcap shares might seem attractive, although they are risky but because they are speculative and might generate better returns, yet the risk is too high and requires more research and monitoring than one might expect for a passive income. Meanwhile, investing in tangible assets offers much more secure and stable returns. In short, Shares, IPOs, and cryptocurrencies are all speculations that deliver no stable income whereas tangible assets are income-producing investments.
Construction Investments as Reliable Passive Income
The global construction industry is currently more coveted for its explosive growth potential. It is expected to reach an estimated USD 10.3 trillion by 2023, and it is forecast to grow at a Compound annual growth rate (CAGR) of 4.2%. The demand for construction equipment is also continuing to increase, and is anticipated to reach USD 228 billion by 2026. Thus, investing in construction equipment is and is continuing to be a reliable option, in both terms of security and returns, for passive income. In fact, it is expected to offer an exponential growth of 23% by 2023.
As promising as the industry becomes, finding a viable investment opportunity might not be that simple. While access to megastructure construction projects ensures secure and stable income as they are backed by Government funding. taking part in small projects promises less desirable returns.
Foundation Capital is one of the more unique organizations that enable investors to take part in this highly lucrative opportunity. Established in 2007, Foundation Capital specializes in giving investors access to the construction industry by means of investing in and owning the machinery and technology needed for megastructure builds. As the organization leases equipment to businesses managing the projects, investors earn monthly income with returns of up to 26% per annum. Not only are the assets secured and insured, but investors are also ensured of simple exit strategies with no hidden terms and conditions or fees. For instance, at the end of five-year contracts, investors get their money back by selling assets at the initial purchase price.
How to Get Started with Foundation Capital
If you want to put your money to work, Foundation Capital is one of the most viable and secure ways to do so. For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:
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