The article was written by Sameer Joshi and was originally published on Financial Express.
Retirement may be a financial milestone in itself, but there are other goals which you may want to accomplish after retirement. For instance, you may want to renovate your home, travel the world with your family, or even set up your own entrepreneurial venture. All this, while also accounting for your everyday needs and healthcare expenses.
Here are more reasons why it is essential to have a financial plan for your retirement.
Source of passive income
Once you have retired, you will not have an active source of income. Planning for your retirement helps you set up a few sources of passive income, so you can continue to have a steady stream of funds.
Remain financially independent
If you want to remain financially independent even in your golden years, retirement planning is the answer. It helps you build a corpus that is enough to meet your post-retirement financial needs.
Maintaining your standard of living
Even though your income may dip once you retire, your expenses may continue to remain at the same level. In fact, taking into account inflation and rising healthcare costs, the expenses would only increase further. Retirement planning ensures that you can continue to maintain your standard of living, without making any compromises on the quality of your life.
It is crucial to invest in the ideal financial instruments depending on your life goals now, to be able to reap the benefits of these products later in your life. A retirement plan gives you the benefit of a corpus that can help sustain your financial needs post retirement. One must keep the following key factors in mind while purchasing a retirement plan:
Vesting period is important
The vesting period is the time after which you start receiving the annuity payouts. If you are closer to retirement, you need to choose an immediate annuity plan or a plan with a shorter vesting period. On the other hand, if you have several years left to retire, choose a plan with a vesting period that aligns with your financial horizon.
Pension corpus should be adequate
The payouts from the pension plan you have chosen should be sufficient for you to get a substantial regular income and meet your post-retirement needs. You need to account for inflation while computing your post-retirement income. You can even invest in more than one retirement plan to increase your passive income. It is crucial to start saving up for your retirement when you are younger, so you can benefit from the power of compounding. The best time to plan for your retirement may have been yesterday, but the second best time is now.
How to Earn Passive Income with Foundation Capital
If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in. Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.
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:
Priyanka Chopra might be earning squillions as a global movie star today, but that hasn’t stopped her from exploring side gigs for income. Not only has she opened Sona, a swanky Indian restaurant in New York City and a retail spinoff called Sona Homes with products like tableware, she’s also invested in premium sportswear brand Perfect Moment, haircare brand Anomaly, runs a film production company called Purple Pebble Pictures, and has published her memoirs titled ‘Unfinished’.
What Chopra is essentially doing is creating ‘passive income’, a way to earn extra money through investments or work already completed, without the need to work full-time. The ideal way to earn passive income is to focus on something that will generate long-term revenue with minimal intervention from you.
In contrast, active income requires you to constantly and actively put in the effort to keep it coming. Do not confuse jobs like consulting, freelance writing or computer programming as passive income – these require the same amount of effort as an active job.
Why do we need passive income?
Delhi-based Jayanth Ranganathan, Senior Director at IIFL Securities says, “Passive income should be a part of every woman’s life. As Warren Buffett once said – ‘If you don’t make money while you are asleep, you have to earn till you die’. Passive income is almost a necessity to survive turbulent economic conditions today. It guarantees greater financial freedom and liberates you from the nine-to-five routine to offer other investing alternatives. It also lets you focus on meaningful financial goals, such as securing money for retirement. Passive income reduces financial stress and takes care of one’s passion, luxury spending or dream holidays.”
In 2021, according to a survey conducted by Fidelity, only 33 per cent of women saw themselves as investors, of which only nine per cent considered themselves better at it than men. They also tended to invest less impulsively and more conservatively – 68 per cent being in cash equivalents as opposed to 59 per cent by men. For some reason, women do not approach finances and investments with the same sophisticated strategies as men. However, with reduced investment comes the reduced opportunity for passive income.
What are the sources of passive income?
Ranganathan says, “There are a lot of ways through which you can start generating passive income. Which or how many you opt for, largely also depends on a woman’s current financial position, her social connects and use of time. While some people invest money, others invest skill and talent to create a source of passive income.” Ranganathan offers a list of passive income sources that beginners can start off with and build upon:
• Rental income is considered one of the safest and oldest means of passive income. If you don’t already have a property, consider buying one to park any excess funds you may have.
• Use the stock market and other investment returns, depending on your risk profile. Consistent passive income can be generated through share market investments, fixed deposit returns and investments in various other financial products. Consult your financial advisor and see which of these balance risk and returns are best for you.
• Lately, social media has spurred a lot of interest cutting across age groups. YouTubers and Instagrammers find themselves earning a passive income, depending on their own passion and usage of social connect. Affiliate marketing is an off-shoot of this as well.
• Consider hosting online mentoring and teaching courses. Particularly after the recent COVID outbreak, there is an increased demand for academic and technical teachers on the digital platform, where they can realise their full potential. You will need to create the material for these courses only once, following which there is only the minimal effort of delivery.
• Creative people can consider copyrighting their music or photographs or books and getting returns from royalties.
How do you start building passive income?
First, make a list of your skill sets that people would constantly pay for. Have you developed an app or an online course? Have you written a riveting book or e-book? Assess what you’re good at that could be used to build parallel income streams. You will also need to start building a nest egg if you’re considering investments – whether it’s an apartment or a fixed deposit. Focus on your long-term passive income goal and work towards building the bank balance that needs it.
What should you consider before plunging into it?
Before opening a passive income stream, there are various aspects to consider, the first and foremost of which is how much it is going to impact you and your lifestyle financially. Passive income isn’t an easy get-rich-quick scheme. So, carefully weigh the positive long-term history, how much you can pump in, how quickly you’ll need the returns, what the minimum risk factors are and the integrity of what you’re investing in.
Says Nrithya Kumar Vardhan, a Bhuvaneshwar-based branch manager with a public sector bank, “While passive income might be a lucrative proposition, always make sure to read the fine print and caveats. Check your primary employer’s rules. Are you allowed to make income on the side? Are there any specific industries or companies that are off-limits? What does your contract state? The last thing you want to do is face legal issues, so be very careful. The other aspect to consider is taxes. Your passive income might come under a different bracket from your active income, but the need to pay taxes definitely exists, so consult an auditor on how to manage and structure payments.”
The harsh truth is, we’ve all got 24 hours every single day to work with. Within this time, not only do most of us work an active job, we also look towards leading enriching lives for ourselves, our families and those around us. But that doesn’t mean we don’t need the money to lead this enriching life. It’s a catch-22 situation, but passive income can be the solution. In the words of entrepreneur and author Robert Kiyosaki, “To obtain financial freedom, one must be either a business owner, an investor, or both, generating passive income, particularly on a monthly basis.” Remember, the only thing that’s truly passive, is no income at all!
How to Start Investing with Foundation Capital
If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in. Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.
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:
Many people forego retirement and work for as long as possible, mainly because they don’t have enough savings. Have you not saved money for retirement, either? Don’t worry; you will not be one of them as long as you know how to create passive income streams by safe investment, shown below.
High-yield savings accounts
High-yield savings accounts may be a suitable option to get a monthly income. It offers higher interest than traditional ones and helps to grow your money passively. This investment type is FDIC-insured, so you won’t have to worry about significant financial risks or monthly fees. In addition, the interest is compounded every day. This may give you the incentive to save your money and watch it grow faster than you could with a traditional savings account.
For example, if you were to deposit $25,000 of your savings into an AMEX high-yield savings account at 0.40% annual percentage yield. With zero monthly deposit, you will earn $504 in interest after five years. It may not provide you the high return as stocks and other types. Still, for some people, this might be the safest and most convenient choice, mainly when you are more into relaxing than brainstorming for a complex strategic investment plan.
Certificates of deposit
Like High-yield savings accounts, Certificates of deposit (CDs) are one of the safest investment options for seniors. With CDs, a fixed amount of money will be put away for a set time to generate a guaranteed return. These can be purchased at brokerage firms, banks, and credit unions, with the bank paying higher fixed interest on the fixed amount. It can be considered savings account with a limited money rate over time.
Like an FDIC-insured high-yield savings account, CDs are insured for up to $250,000. You’ll receive the money you invested and the interest when you redeem the CD. CDs have zero risk and higher interest rates than traditional savings accounts. These rates are fixed, unlike APYs for other accounts. Plus, you can enjoy higher interest rates on your deposit and no monthly fees.
High-quality dividend stocks
With retirement potentially lasting 30 or more years, it’s necessary to have a source of growth in your investment portfolio. Stocks may be the best choice to provide this growth and a hedge against inflation. However, not any stock belongs in a retirement portfolio.
When allocating to equities within a retiree’s account, investors should consider high-quality, mature companies with competitive positions within their industries, reasonable valuations, and growing dividends. The highest valuation companies in the market seem to suffer the most in a market downturn and give those post-retirement or old investors a “heart attack.” To guarantee the return, investors should look for quality companies with a history of paying regular and growing dividends that can serve as a source of income regardless of the stock’s current valuation.
Also, be aware that dividends are not guaranteed. A company can stop paying its premium or change the dividend amount at any time. Therefore, Investors should pair dividend-paying stocks with more reliable income sources, such as bonds and annuities.
Leasing and Buyback investment
It is not hard to miss the need for companies to watch the dollar closer than ever before.
Leasing and Buyback investment is a stream of passive income which assure investors monthly returns without having them do any duties. This model has anything post-retirement or old investors need: security, high interest, and convenience.
The premise of Lease and Buyback is straightforward: you invest in the machinery and technology needed for mega builds around the world through a company. That company then leases your equipment to those businesses managing the projects, earning you a monthly income. At the end of the contract, investors could get their money back by selling the asset at the price they paid for it.
Lease and Buyback is among the smartest, safest, and most sustainable investment choices, especially when the market is in a downturn. Business leaders in manufacturing, construction, maintenance, and other heavy industries often face a dilemma when using new equipment. What are they doing to maintain a steady sail in the economic storm? They are taking a financial inventory of their business and rethinking their heavy equipment acquisition methods by searching for reliable suppliers to provide them with the equipment quickly for a reasonable fee.
Investing in Leasing and Buyback investment, the return may be flexible due to your package and the type of equipment you use. Heavy equipment rental is the most common in the construction, energy, medical, and transportation industries.
Lease and Buyback with Foundation Capital
Foundation Capital is the initiative in leasing and buyback investment. With a proven track record working across many megastructure projects, Foundation Capital have reached all the requirement to ensure the return for investors: The contacts to reliable businesses, the know-how, the policy, and the reach to enable the monthly income streams to investor’s portfolios.
Foundation Capital offers all the advantages that investors want for a passive income stream:
The convenience:
Contact Foundation Capital, Investors will be consulted carefully to decide on the investment strategy and equipment that best suits their targets by well-trained specialists who determine potential projects. Am I responsible for the day-to-day tasks that come along with rental investments?
The flexibility:
Your exit strategy is easy. We provide trusted investment solutions that enable unique opportunities for you to capitalize on the megastructure construction, medical equipment, and transportation projects that are happening across the globe.
The high return:
We have continuously been trusted to bring an average return of 19.63%. In 2019, we hit the mark on investment return at 24.76%. Returns generated will be paid to you monthly in cash.
The security:
A guaranteed buyback protects your capital at the price you paid. When the contract ends, or at any given time, we help you sell your assets and get your initial investment back. There will be no other fee or hidden cost to the returns. You will also enjoy 100% capital preservation because your investment is protected through insurance.
Therefore, if you are 50 and still searching for a sustainable source of passive income with 100% capital preservation to compensate for your lack of savings, dial +852.300.11.111; Foundation Capital’s experts can get you started right now.
How to Start Investing with Foundation Capital
If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in. Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.
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:
Earning 1000$ a month by passive income is not as difficult as you think, as long as you choose the right path. Foundation Capital is here to provide reliable passive income streams which are more valuable than ever, especially when the market is in chaos.
What is Foundation Capital?
Foundation Capital is an investment company that offers Lease and buyback investment for equipment/machinery in Construction, Medical, and Transportation industries. Foundation Capital is the initiative and only company that applies this model.
Foundation Capital’s passive income scheme
Foundation Capital has strict business relationships with the companies that lease our equipment, verifying their creditworthiness through a rigorous audit process. To protect your investment your assets are insured at all times.
How to get 1000 per month with Foundation Capital
Investing with Foundation Capital, you have the choice between a fixed 14% return or a floating rate return which historically has delivered higher income. Let’s say you start investing with the lowest rate which is 14% p.a. The monthly interest would be:
Step 1:
Contact us for more investing information via the number. Once you contact us, a dedicated account manager will look after you every step of the way.
Step 2:
As a client, you can then decide on purchasing appropriate construction equipment and renting it to leasing firms. We help you decide on the investment strategy best suits your circumstances and expectations. Our specialists are well-trained in determining potential projects and recommending the best investment strategies. You can decide how much and which packages you want to invest in.
If you chose the fixed returns package, the monthly interest rate would be 1.167%/month. To get $1000 per month means that you get $12,000 as annual interest, which is equal to 14% of your capital. That means the money you invest would be 85,714$.
Step 3: Send money to our investment platform to buy the industry equipment or asset by following the instructions of your account manager. Once you contact us, a dedicated account manager will look after you every step of the way.
Step 4:
You have done your part, and from then on we will take care of your investment. With a proven track record working across many projects, we have the contact, know-how, and reach to enable investors to add significant monthly income streams to their portfolios.
We will contact and rent out your asset to companies that need the equipment to do their business. Foundation Capital will also follow up and manage all the renting and securing processes to optimize your interest.
Returns generated will be paid to you monthly in cash. There will be no other fee or hidden cost to the returns. You will also enjoy 100% capital preservation because your investment is protected through insurance.
All you have to do is relax and receive a statement of account every month. We are also available by phone to provide you with an update on the status of your account at any time – just give us a call at +852.300.11.111.
Step 5: Buyback (optional)
And as we mentioned before, our lease and buyback investment services come with a guaranteed buyback, meaning you can sell your assets at any time and get your initial investment back at the end of the contract.
The rental companies will conduct the acquisition, allowing you to sell your assets to them at the initial price. Through the rental companies, these assets continue to be leased or relocated to other projects.
Back to the idea of 1000 interest above. You start the investment with 85,714$ and get 1000$ every month. After five years, you can sell your asset back to Foundation Capital to get 85,714$ back. Until then, the total amount of money you get will be $145,714 9 ($85,714 as your capital and $60,000 as your interest)
Suppose you choose a floating rate return that has delivered a higher income. The capital you invest may be a little bit lower, and the interest is even higher. We have continuously been trusted to bring an average return of 19.63%. In 2019, we hit the mark on investment return at 24.76%. It is up to you to choose the package you want.
Secure investment with Foundation Capital – Frequently asked questions
What category of investment asset does Foundation Capital offer you?
We provide trusted investment solutions that enable unique opportunities for you to capitalize on the megastructure construction, medical equipment, and transportation that are happening across the globe.
Am I responsible for the day-to-day tasks that come along with rental investments?
No. Such tasks would be our duty. Our goal is to supply you with ‘passive’ income every month, which means you will never have to work or do anything to receive your cash payments. Just relax, spend time on other things, and wait for the money to run into your account. However, you are in total control of the investments you make and the leasing agreements you accept for the use of your assets.
How do I begin to find renters for my investment assets?
No, you’re not required to. It is our job to find tenants. With over 12 years of expertise, we have formed partnerships with several rental businesses that enable you to lease your assets to global projects and guarantee the best solutions for you.
How long is a typical contract?
A typical contract has a five-year term. However, customized contracts may be set up to suit your personal requirement. In addition, you have the option to extend the agreement by structuring your assets at the end of the term.
Start to make 1000$/month of passive income with Foundation Capital
Please be noted that we have continuously been trusted to bring an average return of 19.63%. In 2019, we even hit the mark on investment return at 24.76%. You can earn much more than just 1000$ per month when contacting us. Just dial +852.300.11.111 and our experts can get you started right away.
How to Start Investing with Foundation Capital
If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in. Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.
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:
There are always chances to grow during a tough time, as long as you can see and grab the opportunities – this is always true, even for investment. Instead of complaining about how rising gas and oil costs make you suffer, let’s figure out the key to get you out of this situation and head to life with financial stability.
Efforts to find more streams of income during the crisis
Tough time for everyone
According to the World Bank, The Ukraine war made inflation a global phenomenon – impacting 100% of advanced countries and 87% of emerging markets and developing economies. The energy price shock is the main factor driving inflation in many European countries to its highest levels in three to four decades. As in England, it is expected that inflation in October 2022 will reach 13%, while in the Eurozone, this figure has fluctuated around 10%.
As a consequence, the cost of living has been dramatically increasing. The price of food, goods, energy, and fuel has been increasing the most due to customers’ high demand and supply chain problems. Households are scrambling to pay their bills for all kinds of goods. Food prices will soar by 22.9% this year, highlighted by a 40% rise in wheat prices.
This is when many people are in a hurry to find more ways, primarily by passive income on security investment with the hope of surviving amid the high inflation.
What is the way out?
Unfortunately, throughout this time, most investing schemes offer no sustainable returns. The ups and downs of stock markets come as a reminder that it pays to have a more diversified investment portfolio that is not too concentrated in stock because of the unsettling events of enterprises. Crypto activity determined as “high risk” or “illicit” has surged in Eastern Europe since the start of the war, according to a report by blockchain analytics firm Chainalysis. Chainalysis reveals that 18.2% of all crypto transactions in Eastern Europe are associated with risky or illicit activity. Interaction with high-risk cryptocurrency exchanges, which often don’t require users to submit know-your-customer (KYC) information, accounts for a fraction of dangerous behavior in Eastern Europe. The yellow metal used to be a good choice until Gold prices dropped in 6 months and seem to have not reached its bottom yet. The uncertainties also happen to other assets when currency investment is unstable, and real estate investments are still unaffordable to many people.
So, what can we do now? As the media often says lately, the current situation often leads to the talk of moving money to safe investments, and this applies to even well-informed investors. Fortunately, of crises, longer-term investment opportunities will be born. During a year of the financial crisis, war, global recession, and trade imbalances, the safest investment is what the world needs the most: Investing in energy.
Besides a 50 percent increase between January 2020 and December 2021, the World Bank reports that the energy price index grew by 26.3% between January and April 2022. The substantial rises in the price of coal, oil, and natural gas are reflected in this spike. Russia is the leading resource to the whole of Europe when providing 40 percent of supplies to Europe before the war. That means the continent is rushing to find another supplier of fossil fuels to make up for that loss, which leads to the fact that There’s no stopping Europe’s gas bills.
At the end of August, future gas prices at the Title Transfer Facility (TTF), the continent’s leading trading hub, reached €321 per megawatt-hour, a stratospheric figure compared to the €27 set a year ago. “The next five to 10 winters will be difficult,” – Belgian Prime Minister Alexander De Croo has warned. It proved to be true when the country’s energy regulator Ofgem announced in September the hike means the average household will pay €4,182 (£3,549) each year to heat and power their homes unless the government steps in. All those figures prove that investing in energy and equipment is one of the most potential choices.
The question is, for individual investors, what energy-related assets have been the most suitable investment? And if you are still confused, let’s take this new asset into your portfolio adjusting: Invest in gas/oil tank containers.
Why Gas/Oil tank containers?
The potential of Fuel storage investment itself
The storage containers market has the potential to grow itself as unreplaceable shipping devices. Shipping containers transport ninety percent of the world’s cargo. The number of containers keeps increasing. According to Statista, in 2021, the total throughput container was 849 million TEU (TEU stands for Twenty-foot Equivalent Unit, the length of a standard shipping container)
The global fuel storage containers market was valued at US$ 25 billion in 2021 and is expected to grow by 4% year on year to US$ 26.13 billion in 2022. During the projected 2022–2032, demand is anticipated to grow at a value CAGR of 4.5%, reaching US$ 40.57 billion. Overall, the market for gasoline storage containers will continue to grow, with a remarkable CAGR from 2015 to 2021.
Additionally, the market for fuel storage containers is anticipated to develop from 2022 to 2032 due to high product availability and customization in accordance with industrial and commercial requirements. With excellent potential and about a third of the market, North America will continue to lead during the projected period.
The demand for energy transportation and reserve is getting higher.
The impact of Covid 19 to shipping prices, together with the extremely high gas price, are additional factors to its expansion. National governments are racing to find alternative supplies now that Russia has cut off one-third of the continent’s gas supplies. This is the opportunity for others to become temporary energy suppliers for Europe. One of the most concerning developments in recent weeks is how much forward contracts in the wholesale markets for gas supply months or years ahead have started to rise. Oil and gas tank containers that can save costs (for instance, by storing more goods per slot and being adaptable for transportation) come in handy.
Besides, the demand to reserve more fossil fuels may be considered from now. Since we cannot know if the world may suffer from any other crisis, countries must search for backup solutions to avoid the run out of energy before having a reliable and sustainable supplier to the market. In the worst cases, they may need more f, facilities such as gas c, containers to preserve fossil fuels. For example, the UK., which does not have extensive gas storage facilities like other European countries, have been filling them over the spring and summer for the winter. They are planning to reopen Rough, the UK’s largest storage facility mothballed in 2017, which will come too late for this year.
How LNG gas is transported.
The rise has yet to reach its peak.
It is predicted that the price of energy storage, under the impact of the gas price surge, is expected to keep increasing, especially when Europe is facing a deepening energy crisis as it prepares for a cold winter, leading gas prices to new record highs. The other supplies are running low, stoking fears.
Norway is pumping as much as possible, but its capacity is maxed out. New supplies, such as liquefied natural gas, must take time to come online because countries such as Germany first have to build specialized terminals to receive the ships. The limited resources make millions of people live mong insanely high prices, with the most obscene being the going rate of natural gas.
Besides the effort to propose a cap to tackle extraordinarily high gas prices, The European Commission is at its best to find and transport more energy from new suppliers and store energy as much as its can.
Get passive income from energy in a unique, safe, and profitable investment model with Foundation Capital.
The investing scheme is quite simple. First, purchase your tank container of choice, then you can rent it to storing or transporting companies that will pay you monthly for the rental.
Sound interesting, but here comes a big question: how can you purchase and rent out those giant devices? Where can you find viable opportunities to purchase tank containers, and whom do you rend it to with high-rate interest?
The good news is that you do not need to worry about that since Foundation Capital is here to get you to take part in this incredibly lucrative opportunity. Since its inception in 2007, Foundation Capital has specialized in providing investors with access to the construction and energy sectors by purchasing and owning the equipment and technology required for megastructure development, healthcare, and energy.
The step to invest in Gas/oil container with Foundation Capital:
Step 1: You access the broad portfolio of oil and gas tank containers and decide on the one that suits your budget or investing plans. Our management support will help you to find the most suitable strategy for your investment goals and budget. You have the choice between a fixed 14% return or a floating rate return which historically has delivered higher income (with returns of up to 26% per annum)
Step 2: Foundation capital will help you to lease these tank containers to businesses whose operation depends on them. We will help to follow and manage the leasing process for you.
Step 3: You need to do is sit back and wait for monthly income. We will keep you updated with all information from the leasing and support you with any concerns.
Step 4: You can recoup your investment by selling these assets for the original purchase price at the end of five-year contracts. We guarantee that your investment is effective, adaptable, and 100 percent secure.
Through that plan, Foundation Capital is confident to guarantee that the assets are secured and insured and that you are also guaranteed straightforward exit plans free of additional costs or ambiguous terms. Because of this, we have amassed the trust of clients worldwide for more than 14 years.
Please get in touch with us for additional information on how to make a capital investment in these oil and gas tank containers.
How to Start Investing with Foundation Capital
If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in. Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.
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:
Take control of your finances and have the life you want to live.
“Don’t let making a living prevent you from making a life.” Said John Wooden. The guy lived for almost 100 years.
Does his statement seem relevant to your current lifestyle? Have you ever wanted to change or improve your financial dependency?
I’m not talking about getting a raise or finding a better-paying job. I am talking about taking control of your finances and living the life you want to live, rather than one that is dictated by someone else’s expectations.
People who don’t have or earn a lot of money may not be able to save for retirement. How are they supposed to live when they can’t work anymore?
What if I told you that there was a way to make money without having to work for it? Would you be interested in learning more about how passive income can help you change your financial future? It’s true! Passive income is the most effective way of making money with less effort.
What is passive income, and why is it important?
Passive income is any money you make from an investment, property or business that can generate earnings without requiring additional effort on your part. Passive income is an investment that generates additional revenue without extra time or effort from you, which means it’s perfect for people with limited incomes or time to invest.
In simpler words, passive income is what you make when your money works for you. Passive income can come in the form of investing, royalties or even gambling. People looking to get ahead of inflation should consider passive income because it grows faster than regular income due to potential massive gains.
Passive income is necessary because it will help you build wealth and create financial security in the future. It’s always good to have an emergency fund, but with a passive source of cash flow, that emergency fund could be much larger and better equipped for unexpected expenses.
The first and most important thing to know about passive income is what it is not. It’s not something you can earn from a regular job. You have to put in the work up front to develop the systems so don’t expect to get rich quickly with this type of income.
5 ways passive income can help you change your financial future
Do you want to change your financial future? Do you want the freedom to work on what you love, rather than having to go into a job that pays well but leaves little time for anything else? If so, passive income could be the answer.
Let’s get to know exactly how it can help you for your finances in the future.
1. Freedom of time
Do you ever wish you could spend more time with your family without constantly thinking about meeting monthly financial deadlines? Do you wish you could take the time off from your regular job without worrying about eating up PTO hours or sick time? Time freedom is the biggest and most important benefit of passive income. Being able to generate income for your family while you’re sleeping, or spending time with your loved ones is life-changing.
Passive income provides stability and security for those who don’t want the worries associated with running their businesses or being self-employed while still allowing them freedom from the 9:00 am to 5:00 pm work day.
Passive income opens up opportunities for people who are employed in corporate America, and those who are operating their own companies to have the time available to invest in what they are passionate about, without the financial pressure they are used to. If you love working at your regular job, but it doesn’t provide the income you need, passive income could be the answer you’re looking for.
2. Less stress and fear of the future
It’s no surprise that money is a major source of stress for many people today. It appears that most individuals have some amount of worry about finances that can lead them down anxious paths, including depression. Money isn’t the most important thing in life, but it certainly makes things easier!
According to a Merrill Edge report, the majority of Americans (56%) would prefer to choose a partner who could provide them with financial stability rather than one who would give them a head over heels love. How sad is that? Imagine giving up on your dreams, or living through an unhappy relationship because you have to make sure the bills are paid.
Making enough money to live comfortably without having to worry can completely change your life and level of happiness. Would erasing the stress of where the bill money was going to come from change your life for the better? I know it did mine. Adding passive income that works for me made me feel like I could finally just enjoy the life going on around me.
After questioning more than 12,000 individuals who had previously applied for loans to eliminate their credit card debt, a survey conducted by Harvard concluded that people who had at least $500 cash on hand showed 15% higher life satisfaction than those who didn’t.
If we talk about well-being subjectively, on average, wealthier people are always happier and more contented with life.
Fear of the future limits our quality of life, making it difficult to enjoy today. A passive income can prevent this as you no longer have to worry about having enough money at month’s-end for your regular costs and bills. All these benefits make us feel better mentally, emotionally and physically.
3. Ability to live and work from anywhere
Many people like to have the freedom and independence that comes from passive income. You can live and travel wherever you want, without worrying about your job at any specific location.
For those who dream of traveling around the world but are unable to, due to their nine-to-five jobs or other obligations, this could be an incredible opportunity. This is a chance to live life on one’s own terms while still being able to take advantage of financial stability without sacrificing passion in any way.
Passive income allows us to take care of the cravings of our hearts by traveling to incredible places without worrying about our financial future.
4. New horizons for growth and stability
You know, when you’re able to make money just by doing something you love and not having a boss watching over your shoulder telling you what to do all day long, it is something heavenly. That increases your productivity and gives you ample time to divert your attention to more important things to help you grow more and make more.
When your income is automatically transferred to a savings account, you don’t need to worry about meeting expenses at month’s-end by exchanging direct time for money. This helps create fiscal clarity, which fuels our goal: future financial stability!
Instead of having to run off to your office every day and indulge in mentally exhausting work, you will be able to train yourself to focus on things that will make you grow and prosper over time.
5. Pursue what you love
We all have things that we’re passionate about doing in life. Unfortunately, the moment something comes up, our passion becomes a distant memory, and instead, it’s replaced with anxiety over bills or just getting by each day on what little money is left from last week’s paycheck.
Passive income frees you from debt so you can indulge your fantasies without worrying if next week is going to be any better than this one was.
Passive income allows you to go debt-free or at the very least financially independent from your job or partner. Passive income means giving yourself time for whatever makes you happiest: music, dance classes or culinary art (perhaps in Italy?), artistry of all kinds…whatever brings inner happiness without having anything holding back those desires anymore.
Conclusion
Passive income is the prospect that can help you significantly change your financial future. I have discussed why it’s important and how it can make your future financially secure and enjoyable. It may not be easy, but if you are willing to put in the work right now to build passive income streams, then there will be huge rewards waiting for you later in life.
How to Earn Passive Income with Foundation Capital
If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in. Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.
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:
Similar to passive investment, which goes in and out of favor on Wall Street, embracing the passive income concept makes a lot of sense.
The concept of passive income has been around forever. Since passive income does not have to be actively managed, it is much more scalable. This affords entrepreneurs even more time to pursue both active and passive income opportunities.
I’ve started many of these businesses myself over the last decade, as well as helped others. With this experience in mind, I want to share important steps in preparing to participate in a passive income stream, and what to look out for ahead of time.
Grow your credit score
Foremost to building a passive income stream is having a good credit score. This opens many doors for extensive capital, which can be surprisingly cheap. Even if you have the funds sitting in liquid investments, borrowed capital is a better option. A good credit score allows you this capital, which is the lifeblood of any venture.
You should want to maximize leverage, too, never using your own capital when you can make a profit off of someone else’s debt capital. By leveraging debt capital with suitable terms and interest, you maximize your return on select investments while your capital remains intact.
Cultivate a network
It’s important to have intellectual resources around you. Picking the right passive income opportunity is not easy. If you have cultivated a network of entrepreneurs that you trust, you can discuss your options and get their intelligent feedback.
The bigger the network, the more valuable it is, so don’t be afraid to share your great ideas with those around you. You can even share your ideas with your broker, yet understand that they may be territorial and worried that you will divert capital away from them.
Find something proven, and be patient
Proven passive income streams are aplenty in e-commerce. There is no disputing the benefits, and efficiencies, of ordering online, especially with an increasingly remote workforce. This is one example, but the truth is that the Internet and its capacity for efficiency will spawn new passive income ideas for decades to come.
Before choosing an investment, do your homework and identify others who have been successful with that particular investment before you. Then, don’t expect to be immediately successful, just because they were. It may take a few months longer than you expected, to experience that same level of success. Impatient people rarely succeed as entrepreneurs, as they’re likely to bail out at the first roadblock. To succeed, you must sometimes put in meaningful work, and that often takes more time than you’d bargained for.
Be careful
Many people are selling passive income ideas, but with limited expertise behind them. These people are tantamount to used car salesmen. Do your due diligence to determine if experts are creating the engine behind the sales forces approaching you, and whether or not they will be accessible in some form or fashion as you pursue this new venture.
You should also attempt to identify whether or not the purveyor of a particular opportunity has deep pockets. If you burn through the initial capital and have nowhere else to turn to but a traditional bank, that will not be good. Banks have a limited understanding of passive income projects, so you are better off conferring with the purveyor beforehand to make sure that you’ll have access to reasonably priced capital in the unlikely event that you’ll need it.
How to Earn Passive Income with Foundation Capital
If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in. Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.
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:
You may have heard that millionaires often have seven streams of income. Here is how to secure yours!
If you have been consuming a lot of wealth content recently, you probably heard that many millionaires have seven income streams. Indeed, even the Bible says you should invest in seven different ventures. Having various income sources is very important, but that doesn’t mean that the advice out there about this subject is actually helpful.
Many people online tell you to start different businesses or side hustles all at once. As a highly successful property investor, I don’t recommend that approach. From my perspective, you are better off specializing and creating many complementary income streams related to your specialization. This allows you to carve out your niche, become known within it and avoid falling for shiny object syndrome, where you hop from opportunity to opportunity.
There is a way to create seven streams of income sustainably. In this article, I will give you a way to make those income streams in three simple, actionable steps. Whether they are suitable for you is for you to decide. I am not a financial adviser; that said, I am a multi-millionaire, and all this is based on my personal experience. Hopefully, you will find my experiences helpful, regardless of the path you choose for yourself.
1. Develop a business strategy to create an active income
You need a way to generate money to invest. As wages aren’t rising at the rate of inflation, I suggest doing this through a business rather than a job. This should be an actual business, not a side hustle. You will get side hustle results if you have a side hustle mindset.
On the other hand, you don’t want to quit your job before you can afford to do so with the income generated by your business. So you will need to find something that you can scale but that, in the beginning, you can do in your spare time.
You also want to find something you can eventually own without needing to work in the business. This means that there must be a way for employees or contractors to take over the work you will initially be doing yourself. This will allow you to sell the business in the future or keep it as a source of passive income and move on to a new business.
An example of this type of business in the property industry would be deal sourcing. Deal sourcing is finding property deals and then selling the information to investors. You can charge a few thousand dollars per deal. Over time, you can hire staff to take over the day-to-day and turn it into a passive income source.
2. Develop an investment strategy to create passive income
The next thing you need to do is invest your money. You need to find assets to buy that pay you to hold them. This will become your source of passive income. This will need to be a reasonably conservative, time-tested investment that will protect your money long-term. This will be your primary investment strategy, so it isn’t something that you want to be changing every month.
Never buy luxuries with your active income; that is for essentials and investing. You can use the money from your passive income source to reinvest and buy luxuries. Eventually, you can live fully off your passive income and invest all your business profits into your investment strategy and back into your business. This will place you in an excellent position to diversify into five new income streams to make the seven.
An excellent example of a property investment strategy that can generate passive income would be buying large houses and renting them out by the room. You will need to put management in place, so you don’t need to deal with tenants yourself. Once you have several houses, you may also need to hire more managers to manage your leadership and ensure the entire operation is passive.
3. Diversify based on your niche
At this point, you only have two streams of income: business and investment. Now is the time to create five more. These should be based on your industry for the most part. Don’t try and go too far outside of your area of expertise. If you’re in the cryptocurrency niche, suddenly writing a cookbook probably isn’t the right move. You want to think about ways to expand within your niche.
Some examples of this might be: writing a book about what you do and how you do it, creating a course; starting a new business that complements your existing one; angel investing in startups within your space; or buying companies you can integrate into your existing structures. If you follow this formula, I believe you can and will succeed!
How to Earn Passive Income with Foundation Capital
If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in. Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.
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:
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.
Lease and buyback is a great way to invest without the stress.
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.
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.
There are always chances to grow during a tough time, as long as you can see and grab the opportunities – this is always true, even for investment. Instead of complaining about how rising gas and oil costs make you suffer, let’s figure out the key to get you out of this situation and head to life with financial stability.
Efforts to find more streams of income during the crisis
Tough time for everyone
According to the World Bank, The Ukraine war made inflation a global phenomenon – impacting 100% of advanced countries and 87% of emerging markets and developing economies. The energy price shock is the main factor driving inflation in many European countries to the highest levels in three to four decades. As in England, it is expected that inflation in October 2022 will reach 13%, while in the Eurozone, this figure has fluctuated around 10%.
Consequently, the cost of living has been dramatically increasing. The price of food, goods, energy, and fuel has been increasing the most due to customers’ high demand and supply chain problems. Households are scrambling to pay their bills for all kinds of goods. Food prices will soar by 22.9% this year, highlighted by a 40% rise in wheat prices.
This is when many people are in a hurry to find more ways, primarily by passive income on security investment with the hope of surviving the high inflation.
What is the way out?
Unfortunately, throughout this time, most investing schemes offer no sustainable returns. The ups and downs of stock markets come as a reminder that it pays to have a more diversified investment portfolio that is not too concentrated in stock because of the unsettling events of enterprises. Crypto activity determined as “high risk” or “illicit” has surged in Eastern Europe since the start of the war, according to blockchain analytics firm Chainalysis. Chainalysis reveals that 18.2% of all crypto transactions in Eastern Europe are associated with risky or illicit activity. Interaction with high-risk cryptocurrency exchanges, which often don’t require users to submit know-your-customer (KYC) information, accounts for a fraction of dangerous behavior in Eastern Europe. The yellow metal used to be a good choice until Gold prices dropped in 6 months and seem to have yet to reach its bottom. The uncertainties also happen to other assets when currency investment is unstable, and real estate investments are still unaffordable to many people.
So, what can we do now? As the media often says lately, the current situation often leads to the talk of moving money to safe investments, and this applies to even well-informed investors. Fortunately, of crises, longer-term investment opportunities will be born. During a year of the financial crisis, war, global recession, and trade imbalances, the safest investment is what the world needs the most: Investing in energy.
Besides a 50 percent increase between January 2020 and December 2021, the World Bank reports that the energy price index grew by 26.3% between January and April 2022. The substantial rises in the price of coal, oil, and natural gas are reflected in this spike. Russia is the primary resource to the whole of Europe when providing 40 percent of supplies to Europe before the war. That means the continent is rushing to find another supplier of fossil fuels to make up for that loss, which leads to the fact that There’s no stopping Europe’s gas bills.
At the end of August, future gas prices at the Title Transfer Facility (TTF), the continent’s leading trading hub, reached €321 per megawatt-hour, a stratospheric figure compared to the €27 set a year ago. “The next five to 10 winters will be difficult,” – Belgian Prime Minister Alexander De Croo has warned. It proved to be true when the country’s energy regulator Ofgem announced in September that the hike means the average household will pay €4,182 (£3,549) each year to heat and power their homes unless the government steps in. Those figures prove that investing in energy and equipment is one of the most potential choices.
The question is, for individual investors, what energy-related assets have been the most suitable investment? And if you are still confused, let’s take this new asset into your portfolio adjusting: Invest in gas/oil tank containers.
Why Gas/Oil tank containers?
The potential of Fuel storage investment itself
The storage containers market has the potential to grow itself as unreplaceable shipping devices. Shipping containers transport ninety percent of the world’s cargo. The number of containers keeps increasing. According to Statista, in 2021, the total throughput container was 849 million TEU (TEU stands for Twenty-foot Equivalent Unit, the length of a standard shipping container)
The global fuel storage containers market was valued at US$ 25 billion in 2021 and is expected to grow by 4% year on year to US$ 26.13 billion in 2022. During the projected period of 2022–2032, demand is anticipated to grow at a value CAGR of 4.5%, reaching US$ 40.57 billion. Overall, the market for gasoline storage containers will continue to grow, with a remarkable CAGR shown from 2015 to 2021.
Additionally, the market for fuel storage containers is anticipated to develop from 2022 to 2032 due to high product availability and customization in accordance with industrial and commercial requirements. With excellent potential and about a third of the market, North America will continue to lead during the projected period.
How LNG gas is transported.
The demand for energy transportation and reserve is getting higher
The impact of Covid 19 to shipping prices, together with the extremely high gas price, are additional factors to its expansion. National governments are racing to find alternative supplies now that Russia has cut off one-third of the continent’s gas supplies. This is the opportunity for others to become temporary energy suppliers for Europe. How much forward contracts in the wholesale markets for gas supply months or years ahead have started to rise is one of the most concerning developments in recent weeks. Oil and gas tank containers that can save costs (for instance, by storing more goods per slot and being adaptable for transportation) come in handy.
Besides, the demand to reserve more fossil fuels may be considered. Since we cannot know if the world may suffer from any other crisis, countries must search for backup solutions to avoid the run out of energy before having a reliable and sustainable supplier to the market. That means they may need more facilities, such as gas containers, to reserve fossil fuels in the worst cases. For example, the UK., which does not have extensive gas storage facilities like other European countries, have been filling them over the spring and summer for the winter. They are planning to reopen Rough, the UK’s largest storage facility mothballed in 2017, which will come too late for this year.
The rise has yet to reach its peak
It is predicted that the price of energy storage, under the impact of the gas price surge, is expected to keep increasing, especially when Europe is facing a deepening energy crisis as it prepares for a cold winter, leading gas prices to new record highs. The other supplies are running low, stoking fears.
Norway is currently pumping as much as it can, but its capacity is maxed out. New supplies, such as liquefied natural gas, must take time to come online because countries such as Germany first must build specialized terminals to receive the ships. The limited resources make millions of people live at insanely high prices, the most obscene being the going rate of natural gas.
Besides the effort to propose a cap to tackle extraordinarily high gas prices, The European Commission is at its best to find and transport more energy from new suppliers and store energy as much as its can.
Get passive income from energy in a unique, safe, and profitable investment model with Foundation Capital
The investing scheme is quite simple. First, purchase your tank container of choice, then you can rent it to storing or transporting companies that will pay you monthly for the rental.
Sound interesting, but here comes a big question: how can you manage to purchase and rent out those giant devices? Where can you find viable opportunities to purchase tank containers, and whom do you rend it to with high-rate interest?
The good news is that you do not need to worry about that since Foundation Capital is here to get you to take part in this incredibly lucrative opportunity. Since its inception in 2007, Foundation Capital has specialized in providing investors with access to the construction and energy sectors by purchasing and owning the equipment and technology required for megastructure development, healthcare, and energy.
The step to invest in Gas/oil container with Foundation Capital:
Step 1: You access the broad portfolio of oil and gas tank containers and decide on the one that suits your budget or investing plans. Our management support will help you to find the most suitable strategy for your investment goals and budget. You have the choice between a fixed 14% return or a floating rate return which historically has delivered higher income (with returns of up to 26% per annum)
Step 2: Foundation capital will help you to lease these tank containers to businesses whose operation depends on them. We will help to follow and manage the leasing process for you.
Step 3: All you need to do is sit back and wait for monthly income. We will keep you updated with all information from the leasing and support you with any concerns.
Step 4: You can recoup your investment by selling these assets for the original purchase price at the end of five-year contracts. We guarantee that your investment is effective, adaptable, and 100 percent secure.
Through that plan, Foundation Capital is confident to guarantee that the assets are secured and insured and that you are also guaranteed straightforward exit plans free of additional costs or ambiguous terms. Because of this, we have amassed clients’ trust worldwide for more than 14 years.
For additional information on how to make a capital investment in these oil and gas tank containers, please get in touch with us.
How to Start Investing with Foundation Capital
If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in. Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.
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:
The thought of earning money without doing any active work sounds pretty nice. When people talk about “earning money while you sleep” (even though that’s a myth), they’re usually referring to passive or residual income. Although the two terms are often used interchangeably, there are some key differences between them. Here’s what to know about the differences between passive and residual income, and what they mean for you bringing in some extra cash.
What is passive income?
In theory, passive income is what it sounds like: Money you earn without performing the active labor of a typical day job. This income starts to flow after putting in a certain amount of time or money upfront, with minimal ongoing effort after your initial investment.
Examples of passive income include renting a spare room through a home-share app or selling clothes online. Then again, most things that are considered passive income (real estate, book royalties, online sales, etc) take a lot more work and consistent effort than financial gurus would have you believe.
What is residual income?
According to Investopedia, there are three main definitions of what residual income means in different contexts (personal finance, corporate finance, or equity valuation). In personal finance terms—our primary concern here—residual income is any leftover income someone has after they pay all of their debts and bills. If you are applying for a loan, your residual income is used to help figure out your creditworthiness as a borrower. It’s essentially another term for discretionary income.
This definition means that residual income is often passive; it does not mean that passive income is necessarily residual. In fact, residual money from your main source of income could be used to support a new passive income endeavor. Both passive and residual income are taxable, although not at the same rates as active income.
The bottom line
While both residual and passive income can boost your financial security, passive income is going to have a greater impact, as explained on Indeed.com. Think about it this way: Let’s say you pay all your bills and reduce your debt by $500 dollars one month, thus creating $500 in residual income. If you also rented out a vacation home that same month, you might have made over $1,000 in passive income—clearly a more significant gain. The caveat here, of course, is how you define “passive” when it comes to booking and maintaining that rental property.
Ultimately, when people are talking about extra cash flow with minimal effort, they’re referring to passive income over residual. You might need residual income to get your “side hustles” off the ground, and then that passive income can increase your total residual income—all the money remaining once your bills are paid.
How to Earn Passive Income with Foundation Capital
If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in. Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.
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:
Looking for a way to get more money on the side without working endless hours? Let’s look at stories of pursuing side hustle for passive income in this article, then, you can find out the best things to make money and how to get started.
Trash picking services
It sounds crazy, but it is true. Meet Brian Winch, an American citizen who turned $200 into $650,000 a year, picking up other people’s trash in business parking lots. The great thing about this small business idea is that you do not have to quit your day job to get started.
His business started even before the internet when Brian was a young man searching for ways to earn more besides his official job. One day, inspiration hit as he recalled that his father used to moonlight cleaning up litter in a local shopping plaza. He had gone along with his father, walked around the property cleaning up litter before the stores opened the next day, and got paid for it.
His motivation kicked in, and he began to think about how he could successfully develop this side hustle idea. Brian started to contact property management companies and offered to clean their retail, office, and warehouse properties daily.
Brian could easily accomplish cleaning litter before and after my full-time job at the sporting goods store. As he began signing on more and more properties, he realized the potential of a viable business on his hands when this side hustle brought him more income than his full-time job. That was when he decided to quit his job and turn his side gig into a profitable full-time business.
Turn trash into cash is Brian’s side hustle for passive income
With the help of his brother and son, Brian has been successfully running his business since 1981 and now earns a full-time income of over six figures a year. Many people who work for his company earn up to $4,000 a month for part-time work! “Today, I manage an operation that bills out over $650,000 yearly in parking lot litter removal contracts. I also know entrepreneurs who are working part-time (following my Cleanlots system) and making an extra $20,000 -$50,000 a year, just by cleaning up litter.” – said Brian.
Listen to music for money
Do you know you can make money by listening to music and writing reviews about it? Among the many ways of earning money online, this may be among the most interesting ones, especially for music lovers.
Why do these music websites pay you? Because such websites pay users so that they can review the music of new and upcoming singers and songwriters. They need feedback from a wide range of people to help musical artists find the right direction they need for their works.
One of the easiest ways to get paid to listen to music is by downloading an app, creating your profile, or logging into a website that promotes artists and record labels. These services may perform market research by getting your opinion on a song. Or they may pay you to check out a new singer or band. After they approve your profile, you can start your work. There are two things you’re supposed to do: Listen to the songs and Review them. The more you listen, the more money you earn.
It is even easier when you don’t stress if you didn’t graduate from Julliard to review the music. These companies require zero knowledge of musical theory. All you need is an internet connection and a love of music. Some popular apps/webs for you to try our Slicethepie, Current Rewards, or HitPredictor…
Besides the web and apps, you can also earn money by listening to music on survey sites like Nielsen and InboxDollars. With Nielsen, you have to down the app on your device and then allow it to track your online behaviors, including the websites you access and the kind of music you listen to. It will collect this data for market research purposes. After that, you may be asked to participate in a focus group where you can share your reviews. InboxDollars require less when you need to sign up for a free account and answer screening questions to find out the surveys you qualify for.
Buy and rent out dividend asset
While there are plenty of different side hustle ideas you can pursue, one of the fastest ways to make money is to rent out your stuff. Renting is not only a way to make some quick money but also a regular side hustle that turns your things into income-generating assets. Most of all, it can be a side hustle that does not take much of your time to maintain.
How much you earn will depend on the items you have. Of course, the most profitable item is probably real estate, then big items such as living space, storage spaces, traveling items, construction devices… However, what if you do not own anything with significant value, or you don’t have enough money to buy land and rent it out? Good news for you, there is a model that you do not need to own the whole items to rent and earn from it: the idea of renting out a piece of equipment/devices, then selling it for the company. This passive income type is also known as “Lease and buyback investment.”
The premise is simple: you invest in hard assets (such as machinery /technology/ devices/land). The investment company then leases your equipment to those businesses managing the projects using those items and earning you a monthly income. After a couple of years (or longer), you get your total investment back by selling the asset at the price you paid.
One trustable name for you to have your first step in dividend asset renting is Foundation Capital, which is the initiative in Construction equipment asset renting. All lease and buyback investments from this company deliver monthly income. You have the choice between a fixed 14% return or a floating rate return (which historically has given higher income). This has been, up to now, the unique model in Construction investment which help users gain a stream of passive income without paying a significant number at first.
The idea of dividend assets investment is applied to a few categories of products, but not all of them work. The most suitable type for dividend asset investment at the moment is likely construction devices/mechanisms due to 2 reasons: the smooth legal implementation and the raising of megastructure builds. Therefore, Foundation Capital commits to producing a sustainable source of passive income with 100% capital preservation for its investors. If you have not generated any new ideas for a side hustle or do not have enough time for a part-time job, earning monthly passive income this way is worth your consideration.
How to Start Investing with Foundation Capital
If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in. Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.
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:
