Join me, Jennifer Longmore, successful serial entrepreneur, jet-setting investor, and wealth channel expert, as I walk you through the EXACT9 KEYSthat I used to identify a high-yielding residualmoney channel can pay up to a $120,000/mth in residual income(if created the most efficient way) so that you can get started right away in building your own abundant residual channel!
Accretion/dilution analysis Adjusted present value Associate company Business valuation Conglomerate discount Cost of capital Weighted average Discounted cash flow Economic value added Enterprise value Fairness opinion Financial modeling Free cash flow Free cash flow to equity Market value added Minority interest Modigliani–Miller theorem Net present value Pure play Real options Residual income Stock valuation Sum-of-the-parts analysis Tax shield Terminal value Valuation using multiples
When withdrawing money to live on, I don’t care how many stock shares I own or what the dividends are – I care about how much MONEY I’m able to safely withdraw from my total portfolio without running out before I die. A lot of academics have analyzed total market returns based on indices and done Monte Carlo simulations of portfolios with various asset allocations, and have come up with percentages that you can have reasonable statistical confidence of being safe.
As doctors, we most likely fall into the first category. We may be rich in the sense that our salaries are in the higher economic range, however, because of our expenses (houses, cars, student loan debt, private school tuition, practice overhead, etc.) and sometimes poor decisions, we have a tough time accumulating any real wealth. We’re also handicapped by the fact that we start along this financial journey relatively later in life.
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Further, the clarified order awarded Karen sixty percent of the residual income that was earned from the income and commissions generated by the brokers within the first category, and after the date of divorce. However, the order also stated that Karen was not entitled to any of the residual income generated by the second or third category. Brad filed for a new trial, but the trial court denied it. He appealed, and the appeals court ultimately affirmed the trial court’s clarified order.
I personally don’t care about being seen as rich – I don’t need the fancy house or cars. I just want to know that I can give up some or all work whenever I’d like to, and spend that time with my family without any financial pressure. I remember reading somewhere that “wealth is measured in time, not dollars” – and I believe that to be totally true. If I ever got a tattoo, that phrase would be highly considered to end up somewhere on my body.
First: I understand why you would say that such investments are restricted to only accredited investors, because generally, that’s true. There are means, under federal securities regulations and Blue Sky laws in each state, to sell interests to non-accredited investors – but usually those means are so heavily regulated and involve disclosures so similar to cumbersome registration requirements that it is not worth it for the seller to offer to non-accredited investors.
So, if the goal is to have residual income when we retire, which seems based on Social Security rules to only be possible in our 60’s, and the government has mandated penalties before taking our money before 59.5, wouldn’t it be prudent to start investing in sources of residual income now that maybe don’t have an age limit into our 60’s? What guarantee do we have that we will make it that long?
Which all goes back to my point – since companies change in a lot of unpredictable ways, it makes more sense for passive income to just ride the market by investing in a Total Domestic Stock Market, Total Bond Market, and Total International index funds, with allocations that depend on your goals and time horizon. For income, withdraw 4% or less, depending on what research you believe, and you’ve got a pretty low risk strategy.
One word of advice, and something I intend to do once I have the money saved up, is to build or buy out property that can support apartments or townhomes. One tough mistake some people make is buying a pair of homes to rent out and they get a nice $2,000-$3,000 a month but that’s it. Buying a house is expensive and the rental prices keep lower income families from potentially coming to you with their money to rent. If you have an acre to work with (more or less is OK too) you should be talking to a contractor to build apartments or townhomes. You will make a little less per unit BUT your audience grows significantly because now you can have college students, single parents, older folks, etc. all able to afford your rental units AND instead of capturing one $1,000-$1,500 a month payments, you can probably charge $700 a month per unit (or more, depending on the market) and build maybe 3, 4, 5, 10 units for the price of a home or two and now you’re making something like $2,100-$10,000 a month. It all depends on what you have to invest but if you’ve got $250,000+ I’d highly suggest you talk to a bank/investor that can get you in touch with a good contractor to build on a property and get permits and take out a matching $250,000 loan (I’ve read that $500,000 is plenty to build a good amount of apartments to start) and you can fill up your apartments and make a killing every month. You’ll have more tenants to deal with but if you’re competitive with your pricing you won’t have a hard time keeping tenants or replacing them.