Rich people know the secret to wealth and peace of mind - and that is - having many cash-streams coming into their lives (and accounts!) instead of just one. One cash flow - say a salary or profit from a business - will not provide security in all times. On the other hand, multiple cash-flows provides stability and security. In case one cash-flow vanishes or reduces, the other one gives you comfort and sustenance.
A good portion of my stock allocation is in growth stocks and structured notes that pay no dividends. The dividend income that comes from stocks is primarily from S&P 500 index ETFs. Although this is a passive income report, as I’m still relatively young, I’m more interested in building a large financial nut through principal appreciation rather than through dividend investing. As an entrepreneur, I can’t help but have a growth mindset.
“[T]he stream of continuing payments that are earned by Brad and/or Karen from the commissions (current and future) earned by the brokers within a book of business. Residual income arises from all sources of income relating to or derived from an identified book of business, including commissions earned by the brokers within that identified book of business from any source whatsoever.”
The most liquid of the private investments are investing in equity or credit hedge funds, real estate funds, and private company funds. There will usually be 6 month – 3 year lockup periods. The least liquid of the private investments are when you invest directly into private companies yourself. You might not be able to get your money out for 5-10 years, depending on the success of the company and upcoming liquidity events.
Turn your burning passions and daily musings into an entertaining audio show. Whether you want to talk about history, food, finance, or music, you can record and edit episodes from the comfort of your home. Once you have a large group of listeners, you can earn money from podcast sponsorships, affiliate marketing, selling products or eBooks, or crowdfunding. While you’ll have to produce episodes consistently, the time involvement is minimal and you can record several shows in advance.
For example, you can design digital products, like animal clipart or a downloadable wedding poem that could be printed by the customer. Your design could be resold thousands of times without needing to create each item or ship it. Once you create your digital product and list it on a site like Etsy or Ebay, the revenue flows in with little oversight.
In equity valuation, residual income represents an economic earnings stream and valuation method for estimating the intrinsic value of a company's common stock. The residual income valuation model values a company as the sum of book value and the present value of expected future residual income. Residual income attempts to measure economic profit, which is the profit remaining after the deduction of opportunity costs for all sources of capital.