In this episode we discuss 7 of our favorite investment lanes - roads that may be suitable for you to investigate in this season of political unrest and a national Covid response.
We have done extensive work in researching some of our favorite roads of investing - our hope is that it may save you some time and help you with your pivot into a cash flow investing space.
Our GUIDELINES are steeped in the following investing principles:
People - we invest to make use of what God has given us and to be able to invest in people so that they could have a better picture of who He is.
Transparency - We strive to employ "honest weights and measures" and we seek that in the investments we make.
Proximity - In times of financial tension or potential crisis, we move our investments closer to home where we can see them and manage them accordingly.
Wisdom - Our hope is that God would lead us as investors and that we would develop shrewd and wise practices to build resources for our families and communities.
Below is a list of lanes/roads and that we believe hold solid opportunities for this season of financial tension:
1. INSURANCE PRODUCTS - when you consider an insurance product you are buying into a promissory product which means that the insurance company is guaranteeing you a fixed percentage or profit each year which is different than a market based product such as an IRA or 401k. If you don't have a wealth strategist and would like to talk to someone regarding your investments, please let us know so we can set up a time to meet with some trusted professionals.
2. SIDE HUSTLE - building a secondary stream of income is paramount to making use of opportunities related to your skillset. Your secondary hours, meaning not your 40hr work week, can be utilized to generate significant income to free you up to invest if, and only if you figure out how to automate some of your 40hr work week.
3. RENTALS - Rentals are probably the number one way to build a cash flow system for your family but it depends on the market and the players in the market. Playing in a crowded market can drive prices up and make new investors overpay for homes. The numbers have to be right. Let's say that again: the numbers have to be right! Whatever package you create has to have enough margin with enough buyers for your service and there has to be room to play, meaning it cant be a crowded space which is harmful for beginners.
4. BUSINESS EQUITY - We consider this the new stock market and follows the ideal of "moving our investments closer to home" which should be a priority in times prior to financial crisis. There is inherent risk in buying into businesses, so your cash flow has to be right for your family to assign money for the long haul to someone else's productivity or potential for productivity. The upside is cash every year from your equity ownership. The downside is the character and strength of the owner you are choosing to invest in.
5. REFERRAL FEES - There are two types of people in industry according to Malcolm Gladwell (The Tipping Point) - Mavens (experts) and Connectors. If you have a decent understanding of process and can write a great story outlining the partnership of two Mavens, you then can sell them the story and after the introduction, write yourselves into the contract or business agreement. Some of the greatest wealth is made from referral fees.
(Affiliate fees are in this category for us as well as it has become lucrative to help people partner with products)
6. INTELLECTUAL PROPERTY - You may have heard of the phrases, "niche down" or "the riches are in the niches". We agree. Find a niche in which you can be seen as an expert and create value - whether through an online class, mastermind class, book or audio product. Once the value is created you must properly utilize your sales bridge to connect with potential buyers and warm them up to your product or value.
7. DEBT SHOP - When someone has influence over a gap in a market or has chosen to provide a service to address a gap they are and should be a target for you to approach regarding investment. The hard part is vetting business owners - as Jon Coyne said in a previous episode, "it is hard to test for character". Having said that there are a few and certain to be more businesses that are partnering you/your investment with businesses. And the beauty is that you can buy in with very little from $10 up to $50,000, thus creating a new and more personal stock market.
Resources and Mentions:
Related Scripture:
1 Chronicles 12:32 - Men of Issachar, people who knew how to interpret the signs of the times.
Matthew 24: Signs of the end times
Luke 16: Parable of the Shrewd Manager