T Nation

Passive Income Sources

I have a question for anyone who knows anything about financial instruments. Are there any financial instruments or investments that compound monthly, allow at least one withdrawal a month and have a few percent interest? I’m wondering how feasible it would be to gain a few hundred dollars a month in interest with the idea of paying a large monthly expense such as rent on an apartment.

How much are you looking to invest and what sort of risk are you willing to take?

A rental property if you have enough money to put down a deposit. I’m doing this soon.
Work out all your expenses such as the mortgage repayments, insurance, estate agent fees, tax, repairs etc vs the total rental income.
If it seems financially viable then go for it.

Have you heard of ZIRP? If it’s rate of return you’re interested in, you really can’t beat selling drugs.

[quote]theuofh wrote:
Have you heard of ZIRP? If it’s rate of return you’re interested in, you really can’t beat selling drugs. [/quote]

I do live in Washington.

[quote]Rebel Shuttle wrote:

[quote]theuofh wrote:
Have you heard of ZIRP? If it’s rate of return you’re interested in, you really can’t beat selling drugs. [/quote]

I do live in Washington.[/quote]
whereabouts? We could go in together starting a dispensary. it’ll be a joint venture

[quote]Rebel Shuttle wrote:
I have a question for anyone who knows anything about financial instruments. Are there any financial instruments or investments that compound monthly, allow at least one withdrawal a month and have a few percent interest? I’m wondering how feasible it would be to gain a few hundred dollars a month in interest with the idea of paying a large monthly expense such as rent on an apartment.[/quote]

Get a online brokerage account and buy stocks that pay dividends like ATT. Depending on how much you have to invest, you may want to set them up as DRIPs at first till they are paying enough out. Later you can have them pay out to your account in cash.

To get a few hundred dollars a month you need a significant amount of money, do you have this? Let’s say you want 200 USD / month -> 2400 a year. Let’s assume you have a annualized 7% return (MORE OR LESS the S&P 500 average), this gives around 35k USD as initial investment (in my eyes this is a lot, I don’t know your situation). This is way too optimistic by the way. Getting this return means beating the majority of professionals. Not to mention the 7% is an average, so you can’t rely on withdrawing your gains consistently.

Rental property might be a good idea if you’re willing to invest a lot of effort to learn this trade. It’s not as easy as most people make it sound. I’m guessing Washington is really expensive too? If you’re looking to invest in rental property why not do it indirectly through REITs?

Relying on dividends for fixed income seems like a very very bad idea to me. The returns are meager and volatile. You are exposed to non-systemic risk so your investment can (and will eventually) drop to zero. You can get comparable returns with bonds, REITs or annuities.

I have thought about this and I think becoming a pimp might not only fit your bill, but may also teach you valuable social skills.

For your consideration.

[quote]Rebel Shuttle wrote:
I have a question for anyone who knows anything about financial instruments. Are there any financial instruments or investments that compound monthly, allow at least one withdrawal a month and have a few percent interest? I’m wondering how feasible it would be to gain a few hundred dollars a month in interest with the idea of paying a large monthly expense such as rent on an apartment.[/quote]

Others mentioned this but what amount are you able to invest currently? And by a few hundred a month do you mean $300 or much more to cover rent?

[quote]Rebel Shuttle wrote:
I have a question for anyone who knows anything about financial instruments. Are there any financial instruments or investments that compound monthly, allow at least one withdrawal a month and have a few percent interest? I’m wondering how feasible it would be to gain a few hundred dollars a month in interest with the idea of paying a large monthly expense such as rent on an apartment.[/quote]

Thirty thousand dollars invested in VNR will give you a monthly distribution of $225 at a very favorable tax rate (how to handle the tax on this equity requires research). If you do not DRIP the monthly distribution it is available for you to use as you see fit.

If you don’t have a significant amount to splash towards investments, I would highly recommend looking at your current situation and cutting costs both monetary and time-based. It’s tends to always be an overlooked way of cashing in and your return on investment is a lot greater where money is scarce.

  • Repair your own shit (car, plumbing, masonry, landscaping, etc.)
  • Cut your own hair
  • Buy a sufficient setup home gym
  • Do all your week’s cooking in 1 hit
  • Buy in bulk
  • Shop around for insurances, service providers, etc.

Just some examples. The time you save you can put your skills to use and do your hustle on the side and earn some money, and the cash you save and extra you earn you put forward to future investments.

[quote]Teledin wrote:
If you don’t have a significant amount to splash towards investments, I would highly recommend looking at your current situation and cutting costs both monetary and time-based. It’s tends to always be an overlooked way of cashing in and your return on investment is a lot greater where money is scarce.

  • Repair your own shit (car, plumbing, masonry, landscaping, etc.)
  • Cut your own hair
  • Buy a sufficient setup home gym
  • Do all your week’s cooking in 1 hit
  • Buy in bulk
  • Shop around for insurances, service providers, etc.

Just some examples. The time you save you can put your skills to use and do your hustle on the side and earn some money, and the cash you save and extra you earn you put forward to future investments.[/quote]

Please dont cut your own hair.

[quote]orion wrote:
I have thought about this and I think becoming a pimp might not only fit your bill, but may also teach you valuable social skills.

For your consideration. [/quote]

I second this. If you lift you can save money on not having to get body guards.

[quote]Waittz wrote:

[quote]Teledin wrote:
If you don’t have a significant amount to splash towards investments, I would highly recommend looking at your current situation and cutting costs both monetary and time-based. It’s tends to always be an overlooked way of cashing in and your return on investment is a lot greater where money is scarce.

  • Repair your own shit (car, plumbing, masonry, landscaping, etc.)
  • Cut your own hair
  • Buy a sufficient setup home gym
  • Do all your week’s cooking in 1 hit
  • Buy in bulk
  • Shop around for insurances, service providers, etc.

Just some examples. The time you save you can put your skills to use and do your hustle on the side and earn some money, and the cash you save and extra you earn you put forward to future investments.[/quote]

Please dont cut your own hair. [/quote]

Instead buy multi colored socks in the clearance bin. I hear those are way fashionable.

[quote]Waittz wrote:

[quote]Teledin wrote:
If you don’t have a significant amount to splash towards investments, I would highly recommend looking at your current situation and cutting costs both monetary and time-based. It’s tends to always be an overlooked way of cashing in and your return on investment is a lot greater where money is scarce.

  • Repair your own shit (car, plumbing, masonry, landscaping, etc.)
  • Cut your own hair
  • Buy a sufficient setup home gym
  • Do all your week’s cooking in 1 hit
  • Buy in bulk
  • Shop around for insurances, service providers, etc.

Just some examples. The time you save you can put your skills to use and do your hustle on the side and earn some money, and the cash you save and extra you earn you put forward to future investments.[/quote]

Please dont cut your own hair. [/quote]

I cut my own hair…

[quote]Bauber wrote:

[quote]Waittz wrote:

[quote]Teledin wrote:
If you don’t have a significant amount to splash towards investments, I would highly recommend looking at your current situation and cutting costs both monetary and time-based. It’s tends to always be an overlooked way of cashing in and your return on investment is a lot greater where money is scarce.

  • Repair your own shit (car, plumbing, masonry, landscaping, etc.)
  • Cut your own hair
  • Buy a sufficient setup home gym
  • Do all your week’s cooking in 1 hit
  • Buy in bulk
  • Shop around for insurances, service providers, etc.

Just some examples. The time you save you can put your skills to use and do your hustle on the side and earn some money, and the cash you save and extra you earn you put forward to future investments.[/quote]

Please dont cut your own hair. [/quote]

I cut my own hair…[/quote]

A buzz is not a cut. It is a trim.

[quote]dmaddox wrote:

[quote]Bauber wrote:

[quote]Waittz wrote:

[quote]Teledin wrote:
If you don’t have a significant amount to splash towards investments, I would highly recommend looking at your current situation and cutting costs both monetary and time-based. It’s tends to always be an overlooked way of cashing in and your return on investment is a lot greater where money is scarce.

  • Repair your own shit (car, plumbing, masonry, landscaping, etc.)
  • Cut your own hair
  • Buy a sufficient setup home gym
  • Do all your week’s cooking in 1 hit
  • Buy in bulk
  • Shop around for insurances, service providers, etc.

Just some examples. The time you save you can put your skills to use and do your hustle on the side and earn some money, and the cash you save and extra you earn you put forward to future investments.[/quote]

Please dont cut your own hair. [/quote]

I cut my own hair…[/quote]

A buzz is not a cut. It is a trim.
[/quote]

Correction, I trim my own hair.

Save your money, and buy Gold and Silver. The end is near. We are all going to die.

Have a nice day.

I buy Rental Properties. I am getting about $36k a year right now tax free. Now with housing prices going up I am making a killing.

[quote]dmaddox wrote:
Save your money, and buy Gold and Silver. The end is near. We are all going to die.

Have a nice day.

I buy Rental Properties. I am getting about $36k a year right now tax free. Now with housing prices going up I am making a killing.[/quote]

Tax free? Please explain.