[crud3w4re]

What are some ways that I [or others] can take their money, and then create residual income with it? I think the true goal in these regulated Capitalist nations is not to try to extract money out of the system, but to create residual income over a longterm period. Am I right? What are some tips? Not *only* retirement funds etc that's all longterm stuff that really doesn't matter when you live for the day to day, I'm referring to "investing for income" and just creating residual income with money.

[radreality]

It depends on how much of your time you want to invest and how much capital you actually have to play with. The saying "the rich get richer" is true because they often have more resources. The rich don't just take their money and give it to a stock broker; they will invest in businesses. They will sometimes start their own business, buy franchises, stick it in real estate, or become part of investment groups (angels, etc.). The rich dont' have average financials, they don't make the bulk of their money off of average investments.

It all depends on what your goal is. If you just want to make some income off of your investment and/or your investment to grow slightly.....then you might be best just going to a stock broker (or fund manager, depending on the amount of your investments). But if you want your investment to grow decently, you are probably better off investing some more of your time and putting it into various types of busineses.

A couple things to always keep in mind: Diversify (and that doesn't mean different types of stock, lol), and always have different plans implimented at the same time (a safe plan, a medium risk plan, and a high risk plan), depending on your situation will determine the balance of those plans.

[akula]

giving money to a stockbroker and "starting own business" are the same thing

they are both equity investments

[DrMoney]

I would say If you sold insurance and mutual funds provide good residual income.

[radreality]

Originally Posted by akula

giving money to a stockbroker and "starting own business" are the same thing

they are both equity investments

they are both TYPES of equity investments, but each have extremely different outcomes. The average account with a stock broker (including mutual funds, hedge funds, blue chips, real estate funds, etc.) makes 6% yeild; some people make more, and some people lose money. If you're happy with that, then that route would be fine. You also can't use other peoples money with these types of investments, you have to use 100% your own money. Who cares if you have more money than you can handle, even Donald Trump prefers to use other peoples money when he is investing.

It all depends on what your goals are. In real estate profit percentages in upwards of 50% are common; and for a business, profit percentages are often in the hundreds if not thousands (depending on how successful the business is).

But it all depends on what your goals are and what your abilities are.

[crud3w4re]

hm interesting. I'd prefer NOT to go through stock brokers Too many bad stories. I prefer to do it in a way where people aren't trying to guide me based on their own financial interests at heart. What is "income investing" about? Are bonds a good idea? Bank CD's? Can I offer microloans to businesses? How about loaning out money via prosper.com ?

[radreality]

Originally Posted by crud3w4re

hm interesting. I'd prefer NOT to go through stock brokers Too many bad stories. I prefer to do it in a way where people aren't trying to guide me based on their own financial interests at heart. What is "income investing" about? Are bonds a good idea? Bank CD's? Can I offer microloans to businesses? How about loaning out money via prosper.com ?

It all depends on how much money you have to play with and the types of returns you want to see. Bank CD's are pretty secure, but very low return. You can get into offering working capital to businesses, but you get into an area where a lot could go wrong. You should have a team of people (attorney, accountant, mentor, etc.) at minimum when you are getting into funding other peoples businesses. Almost every major city has a local angel organization, but they have certain financial requirements for you to be a member.

If you have under $10 million to play with, I would stay away from funding other peoples projects, and stick to your own stuff still. Give a little to a stock broker, put a little in real estate, and put some into your own business or franchise......the point is to be well rounded, not necessarily the details of what you invest in.

[crud3w4re]

Are Mutual Funds considered an equity? They deal with Bonds [safe] and Stock [risky] so they're a mix of the two.

How about a portfolio of like: 50% of money in Mutual Funds / 40% in "fixed income securies" like bank / CD's and 10% in some alternative things.

[The Stealthy One]

Originally Posted by crud3w4re

hm interesting. I'd prefer NOT to go through stock brokers Too many bad stories. I prefer to do it in a way where people aren't trying to guide me based on their own financial interests at heart. What is "income investing" about? Are bonds a good idea? Bank CD's? Can I offer microloans to businesses? How about loaning out money via prosper.com ?

What is your desired ROI?

Also, mutual funds don't necessarily deal in both bonds and stocks. The makeup of a fund depends entirely on its management and goals. Check out http://www.money.com , http://www.smartmoney.com , and http://www.financialtimes.com (among others) - they'll give you a good start in learning more about this.

[radreality]

Originally Posted by The Stealthy One

What is your desired ROI?

Thats the key. It all depends on how much you want to make.