By the nature of a blog post, financial and investment information must be kept very general. I cannot make specific recommendations for investing. For both legal and ethical reasons, the percentages below are rough estimates and are for general information purposes only.
Wealth Attraction is the idea that, if you put yourself in the right position, the universe will reward you for your foresight. The universe will help you acquire wealth with a minimum of effort and stress. Because of my success, I am a firm believer in real estate investments as a great way to generate passive income. In fact, I believe in this tactic so much that I’ve spent the last 20 years teaching others how to do it.
Generate Passive Income: Real Estate vs. Stock Market
Of course, there are others who advocate investing in the stock market as a way to generate passive income. While I would never say “Don’t invest” in something you believe in, I think the numbers below justify my reasoning to invest in real estate over the stock market.
The cumulative return on investments in the stock market over the past 20 years is about 188%. (The Balance.com) NOTE: This number includes the artificially high values maintained over the past 8-10 years due to the Federal Reserve’s manipulation of the discount rate.
The cumulative return on investments in real estate over the past 20 years is about 236%. (REIT.com) The breakdown of types of real estate and their ROI over 20 years looks something like this: (numbers rounded for convenience)
- Office: 220%
- Industrial: 228%
- Retail: 268%
- Residential: 272%
- Diversified: 193%
Again, these numbers cannot be exact due to the nature of reporting. Data is often a few months behind when it comes out. However, the overall trend is clear to me: real estate wins!
According to Investopedia.com, passive income is, “Earnings an individual derives from a rental property, limited partnership or other enterprises in which he or she is not materially involved.” Now, just how passive either of these types of investing depends mainly on your personality. Are you a “hands-on” type of investor? Or are you a sit back and “rake it in” type of investor? Whichever investment vehicle(s) you choose, do everything you can to make them as passive as possible. That way, you can avoid the stress of having to “watch out” for your money regularly. Furthermore, your investment vehicle will determine how active or passive you can be.
Being a successful investor starts with learning how to attract wealth to you. Start with my book, “The Wealth Attraction Formula” to prepare your mind and establish your goals for generating passive income.
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