Investing in the stock market and mutual funds is another important revenue opportunity. You earn money on the money you have saved creating you an engine that can help you enjoy all the fruits of life.
My Dad is a very successful stock trader for over 40 years. He has learned how to play the emotional market and understands how to analyze companies and read through all the hype and baloney. While I am more conservative, I try to apply his logic and it has helped us grow.
Since we invest into Real Estate we are a bit more conservative when it comes to our investments in stocks.
What is my strategy?
- Preferred Stocks – Usually in the banking you can find good high quality preferred stocks that are paying 6% annually. The price does not fluctuate much and the risk is if the company goes out of business. I have invested in the Big Banks with good earnings.
- Dividend Stocks – I am a fan of cash flow. So naturally I only look for stocks that will pay dividends and show the potential for growth. This is a win/win. I am earning extra income and earning appreciation on the stock price.
- US Treasuries – You can earn up to 3% on US Treasuries and you do not have to pay state taxes on the earnings. This is the safest investment with a decent return.