So, if you decide to engage in independent investing, then you should then determine which type of investment is interesting and preferable – passive or active. Let's look at financial investment strategies in this way:
Passive investing. This strategy is as follows – we collect different types of assets that require simultaneous actions with little subsequent control. The most common tactic is renting out real estate. Every month you get an income, and in some circumstances you can avoid taxes. As a modernization of the strategy of investing in real estate, they use a mortgage – they make the first installment and then pay the amount from the money that the rent of the premises brings. After the payment, we already have 2 properties, you can repeat the mortgage option with another one. And this can continue for a very long time, with each new property speeding up the process of paying off the mortgage.
The second option of passive investment is various financial investments. For example, a bank deposit. It brings a small, but very stable income, does not require time and attention. The income can be taken away, and you can leave, gradually increasing the amount of money, respectively, and the income itself will grow. Another popular type of passive investment is government bonds. There are no strategies for investing in bonds, we simply choose the appropriate maturity and payment schedule.
I am also using mortgage as passive income and it is one of the best investment for an investor. In active investment there are many chances of loss instead of passive. Passive investment will provide us a small and stable amount. I got all these information from commercial mortgage broker. Passive mortgage will also save you from taxes because you are not getting a huge amount. When payment will be complete now we have a opportunity to repeat the mortgage again.
-- Edited by peterson12 on Thursday 2nd of December 2021 04:21:34 AM
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