3 Tricks to Passively Boost Your Income
It’s been said over and over: Millionaires have an average of seven different sources of income.
If you think you might be covered by Social Security or a pension down the line, it’s ALWAYS safer to have more.
Making sure your investments earn income is one of the best ways to beat inflation. Income is generally more reliable than capital gains and taxed at a lower rate.
So what are your options?
Well, you can either work more for more money… Or you can make your money work for you!
Today I want to share three passive ways you could potentially retire a millionaire. Let’s start with number one.
1. Peer-to-Peer Profits
It all began in 2006 when San Francisco-based LendingClub was founded with one simple goal: to reinvent banking.
LendingClub offers a marketplace for lenders (investors) and borrowers to get together… and remove big banks from the equation. This is great for all parties.
Borrowers get access to the loans they need without having to deal with greedy banks and, more importantly, you get to lend folks money and collect huge interest rates in a secure investment.
Of course, LendingClub vets its borrowers heavily… you don’t have to worry about making risky loans that never get paid back.
With Lending Club, you get access to a secure “bank account” that often pays 10% to investors — without the risk of stocks, bonds, options or any other typical investment brokers try to offer you.
Of course, it’s worth noting that LendingClub is a reputable company. They’re as safe as your brokerage and you could get set up in minutes. Click here to see how.
2. This Asset Pays Out 90% of Its Profits to You
For those not familiar with REITs, they’re a lot like mutual funds, but rather than investing in stocks or bonds, they put their cash to work by buying apartment buildings, office space, shopping centers and other properties.
The best part about REITs is they must, by law, pass the vast majority of their income along to investors via dividends.
And when the Fed hints at more rate cuts, like they are right now ahead of this October’s meeting, the yields REITs pay out could get even more attractive.
Now on to our last easy income stream.
3. The Next Level of Dividend Investments
I’ve cracked the code on Wall Street’s best-kept secret:
Dividend reinvestment plans (DRIPs).
And DRIPs typically give out 100–200% more than typical dividends would over time!
With DRIPs, instead of receiving a traditional cash payout from your dividend investment, you actually reinvest that money back into the company and purchase additional shares.
Plenty of companies operate their own reinvestment plan. Once your initial stock is purchased, you should then have the option to enroll in their offered program.
To get started, I recommend buying one share of a high-quality dividend stock and getting it enrolled in the dividend reinvestment plan as shown above.
Then contribute more money as you feel comfortable.
Remember, the more you put in, the more your dividends will be able to purchase.
And soon enough, your account will be big enough to fund your retirement and then some! For more detailed information on DRIPS click here.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch