Comment: Buy an Income Stream

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Buy an Income Stream

I've bootstrapped myself up from about as much money as you have to ... well, let's just say I am financially independent. My meta advice is to consider carefully the source of any advice you are considering following. If the person isn't an example of financial success I suggest you discount their advice. Massively. If you find a good example of financial success, I suggest you do what they do and not so much what they say.

In particular I suggest you stay out of stocks. Few who tout stocks actually made and make the bulk of their money in stocks; they either tout them because they are ignorant or they tout them because they make their money advising stocks. In any case, the stock markets are no deal at this point on a dividend basis and are massively gamed and over extended. I also confess I don't like stocks as you are not an insider and don't have control.

I also suggest you stay out of metals. Although they may do very well going forward as the fiat money in the world degrades, they are a speculation or an insurance policy at this point; they are not an investment and they are not appropriate for someone who doesn't already have an income stream.

You have enough money to buy an income stream. Diligently seek one.

I particularly was intrigued by the poster who said that with 20K you COULD buy a web-based business which gushes cash. I don't know, from personal experience, how difficult that is to do on the web, but it sounds credible and intriguing.

Alternatively, you could buy an existing small business (or start one from scratch, but that is easier said than done). Be picky and insist on hard evidence of income, expense, and asset value claims. You're looking for a needle in a haystack from someone who wants out for personal reasons, not because the business can't cut it. Don't buy a job, buy an income stream. You likely will have to, and will want to, work the business while you build and learn it. However, ultimately the income stream should require very little of your time and energy or you bought a job and not an income stream.

Alternatively, you could buy a piece of real estate on the cheap. If you go this route, I suggest you use my rule of thumb: the property MUST be able to cash flow with your 20K down. Don't even look at anything which won't rent for more than 1% per month of the purchase price (e.g., if you use your 20K to buy a 100K house, it needs to rent for at least $1,000 per month). It is only above that 1% monthly return that you begin to have an income stream, so be really particular.

The artificially low interest rates have really distorted the markets. Everything touchable by hedge funds and flippers/ speculators has been touched. You should be looking for opportunities on the margin where your personal touch can make a big difference. You should be looking for niche opportunities which cash flow, can scale or be better managed to cash flow even more, and are generally not visible unless you go looking for them.

Good luck.

Bill of Rights /Amendment X: "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."

Do you need a politician or judge to "interpret" those 28