How stressed out it is when we keep working to earn income or live paycheck to paycheck. After a lifetime of working hard, we deserve some time in our retirement “golden years” to relax, travel, or do nothing. It is not that difficult to have freedom and comfort in our retirement. The key is a passive stream of income which most of us can achieve as long as we develop a solid plan and the right investment strategies.
Prioritize “dividends payment” to reduce stress over the ups and downs of the stock market
It is obvious that investing in stocks with dividends is more beneficial to shareholders. Dividends are periodic payments made by companies to owners of their stock. They are means for a company to share some of its revenue with investors who own an equity interest in the company. Dividends are beneficial to many shareholders because they represent additional returns on investments. Investing into stock with dividends, investors can receive a regular income from their equity investment while holding the stock to profit further from appreciation in the share price.
We can say that dividends are money in hand while the stocks rise and fall in the market when they can offer potential downside defense during market sell-offs. Besides, dividends provide investors with income to help meet immediate cash needs – things that retirees might increasingly look to them for, especially in low-interest-rate environments. And companies that have consistently increased their dividends tend to be well-run businesses. Those companies may historically have weathered downturns but have more significant return potential over time.
Small step into real estate investment with REIT
Clearly, real estate has several opportunities and formats that may interest you when talking about the highest interest rate investment types. So far, investing in REIT has been the easiest way to start. With REIT, you don’t need to do any work other than research and follow the investment. The process is very similar to mutual funds: you buy shares, contribute money then gain monetary benefit in return.
REITs are also a low-cost investment because shares of most REITs trade for less than $100 each. That’s why your investment is spread out over a portfolio of real estate properties.
Moreover, REITs are required to return at least 90% of the income to investors as dividends. Besides, they are generally straightforward to get involved in, like mutual funds, making it a great passive income option for many investors.
A downside to this investment opportunity is that REITs will generate lower returns on average than other passive income real estate opportunities. However, if you do have enough savings to invest in different types of property investment but still do not want to miss out on earning opportunities with real estate, this may be a proper choice.
Keep at least a 100% safe investment in your portfolio by investing in Leasing and buying back company
Lease and buyback is an investment type that delivers what is known as ‘passive’ or ‘unearned’ income. The mechanism is quite simple: you own something (machinery, equipment, etc.), rent it to somebody else, sit back and receive cash payments into your bank account every month.
How can you do it? Which equipment/mechanism do you buy, and to whom do you rent it out? How can you follow the leasing process? Some companies manage the whole process for you. The companies will put the contracts in place to enable you to buy machinery and equipment as an asset. Then, they lease your equipment to those businesses managing the projects, earning you a monthly income.
And as the name suggests, at the end of five years (or longer), you can get your money back by selling the asset at the price you paid. By this premise, all you need to do is to send your money for investment, then wait to see the return at the end of the month, without any stress, or learn and trade to assure the interest.
Obviously, leasing and buyback will work best when it comes to industries with sustainable development. Also, the investment company must develop strict business relationships with the companies that lease the equipment, verifying their creditworthiness through a rigorous audit process.
Being the very first and unique company that applies the leasing and buyback model, Foundation Capital reaches all those requirements with guaranteed buy-back, highly qualified investment consultants, and credible strategic partnerships. Over the past 12 years, Foundation Capital has paid back the belief of tons of customers when assuring them at least 16% annual interest investment and a sustainable source of passive income with 100% capital preservation.
One of the greatest things is that foundation Capital’s capacity is no longer limited in the construction industry as it used to be. The company is on the way to completing the final steps to apply its model to other industries, such as medical equipment, medical machinery, and transportation machinery.
Start investing with Foundation Capital
Secure your passive income with a diversified portfolio
There is one thing you need to bear in mind when it comes to long-term investing: You cannot, or rather should not, depend on one investment asset.
When diversifying your portfolio, you will incorporate a variety of different asset types into your portfolio. Diversification can help you to reduce your investment risk and also augments returns. When market events affect each asset differently, one asset’s performance can not affect other assets or your entire portfolio.
There are basically two ways to diversify your portfolio: across asset classes and within asset classes. You can apply both of them.
When you choose to diversify across asset classes, you spread your investments across multiple types of assets. For example, rather than investing in only stocks, you may also invest in bonds, real estate, and more. When you diversify within an asset class, you will spread your investments across many investments within a specific type of asset. For the exam, rather than buying stock in a single company, you will buy stock from various companies of many different sizes and sectors. This is always a risk-hedging strategy.
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Tips to secure your passive income journey