How Investing can help you generate more Income - Online Income Generation, Income Growth Strategies, Freelancing Income  
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Following two years of saving and sacrifice – sweat and over time – you have at long last sufficiently collected money to start investing outside of the retirement accounts.

You have quite recently spent the evening with the new broker, while the person went over a lot of investment decisions, explaining everyone in detail, leaving you confused. In any case, you are hoping to make some extra income, investing in the right project will allow you to get the results you need.

Apart from knowing the right asset to invest in, there are some strategies you need to put in place to help you better generate more income from your investments.

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Before we discuss the investment opportunities available for you, let us consider some strategies to implement so that you can increase your income. This will help you to see the investment opportunities in a different light.

4 Strategies to Generate More Investment Income

1. Cut investment expenses

One of the first obvious ways to increase your income will be to cutting investment expenses. The most obvious way to do this is by working with the lowest cost broker that you can.

Stock transaction fees can really add up if you’re an active trader, so you will want to look for a broker that has the lowest transaction fees possible.

If you’re a fund investor, you’ll want to pay especially close attention to 12b-1 fees. These are fees that cover the operational expenses of a fund, and since they are charged within the fund — rather than as a direct charge to you — they are easy to miss.

These fees can range from 0.25% to 1% of your fund investment each year. You want to invest in funds that are on the lowest end of the range possible, as a difference of just 0.5% on your investment each and every year can make a substantial difference over a long period of time.

You’ll also want to do this within the framework of working with funds and brokers that do not charge load fees. While these are one-time charges, they can reduce your overall return, particularly if you frequently trade funds.

2. Minimize trading transactions

Another better way to increase your income is to minimize your trading. If you are looking for your portfolio to provide greater investment income, you’ll want to stay with your investment choices on a long-term basis.

This is when it’s important to stick with the investment strategy you’ve carefully planned out so you can reduce your transactions. The less trading you do, the lower your investment expenses will be, and the greater your investment income.

3. Pay Attention to Dividend Stocks

Dividend stocks are the obvious first place to start looking. You aren’t abandoning stocks at this point, but looking for investments that also pay an above-average rate of return through dividends.

Dividend stocks have at least three advantages:

  • Above-average income
  • Continued participation in capital appreciation
  • Some protection against price declines is afforded by the dividend yield

One of the caveats here is that a stock isn’t worth holding simply because it has a high dividend yield. Some stocks can yield well into double-digit percentage returns, but that is often an indication of underlying weakness.

For example, the stock may have recently had a bad run that depressed the price, dramatically increasing the dividend yield. Eventually, the dividend will have to be cut to accommodate the company’s weakened financial state.

If holding individual dividend stocks seems like a crapshoot, you always have the alternative of investing in a dividend index fund. One such fund is iShares Select Dividend ETF. The ETF invests in a wide range of mostly U.S. dividend-paying stocks and has a yield of 3.58%.

Consider non-traditional investments

In recent years, many investors have become hyper-focused on stocks. But there are income opportunities outside the stock market, and now is an excellent time to investigate potential opportunities.

Not only is this a way of locating income sources for your portfolio, but it will also function as a needed source of diversification.

Treasury Inflation-Protected Securities (TIPS). These are U.S. Treasury securities that come with interest, plus inflation adjustments. The current yield on 5-year TIPS is 0.91%, which won’t exactly light your portfolio on fire, but not much in the fixed income sector will these days.

The beauty of TIPS is that the yield increases with inflation — and that’s what usually precedes higher interest rates. Your yield will improve without you needing to chase higher-yielding investments in a rising interest rate market.

Income property. Depending upon where you live, you may find income properties available at bargain prices. Rental real estate is riskier (and more hands-on) than paper investments. But in some areas, prices have been so depressed by the housing collapse that rental property is now a financially viable alternative.

A $150,000 property that can be purchased with a 20% down payment ($30,000) and a $120,000 mortgage at about 4.5%, will have a monthly principal and interest payment of about $608. With $250 added for real estate taxes and property insurance, that’s a total monthly payment of $858. If the house can be rented for $1,000 per month, you’ll have a net positive cash flow of $142 per month, or $1,704 per year. That will represent a return of 5.68% on your $30,000 down payment.

REITs. If you don’t feel like getting your hands dirty with direct ownership of rental property, you can always opt instead for a real estate investment trust or REIT. We can think of REITs as mutual funds for income-producing real estate, so when you buy into one you’re actually investing in a portfolio of properties (or mortgages on those properties).

You can invest in an index type REIT, such as the Vanguard REIT Index Fund (VGRSX). The fund has well-diversified holdings and a yield of 3.38%. You can’t even get that on a 30-year Treasury Bond.

With all these strategies above properly implemented, you are sure to get an increase in your investments.

Next, we are going to look at some investment opportunities available to you to help increase your income. We are only going to talk about 5 of them.

5 Investment Opportunities to consider

Play the stock market

Day trading isn’t for brokers and rich. It takes grit and assurance. It takes understanding the diverse market forces at play. This isn’t something intended for amateurs. However, whenever learned and learned well, it is where you can rapidly – inside the span of hours – make a lot of money with a relatively little investment.

Invest in a money-production course

Investing in yourself is a standout amongst the most ideal investments you can make. While you probably won’t most likely identify the real return on the investment, there is no fund that is better spending. Invest in your education and in yourself. Find what you are passionate about.

Trade commodities

Trading commodities like gold and silver present a rare chance, particularly when they’re trading at the lower end of their five-year range. Measurements like that give a solid indication on where commodities may head. The basics of financial matters drive the cost of commodities. As supply plunges, request increments and costs rise. Any disruption to a supply chain severely affects costs. For instance, a health alarm to livestock can altogether alter costs as scarcity reins free. But, meat and livestock are only one type of commodities.

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Trade cryptocurrencies

Cryptocurrencies are on the rise. While trading them may appear to be risky, in the event that you fence your bets here too, you could limit the fallout from a badly timed deal. There are a lot of platforms for trading cryptocurrencies too. But, before you dive into it, educate yourself. Discover courses on platforms such as Kajabi, Teachable, or Udemy. What’s more, learn the intricacies of trading things like Litecoin, Ether, Bitcoin, and others.

Flip Real Estate Contracts

Profiting with real estate may appear to be a long haul prospect, yet it is most certainly not. There are ways you can take $500 to $1,000 and invest it in flipping the real estate contracts to make money. How? Utilize a framework to see how the market functions initially. It will at that point give you the information and instruments to distinguish unoccupied homes, cash purchasers, and distressed sellers.

While the vast majority feels that real estate could be won by flipping the traditional homes as well as doing the reconstruction yourself, the quickest money you could make in the real estate includes flipping the actual contract itself. It’s arbitrage.

Distinguish the motivated sellers and money purchasers, unite them, and effectively broker the deal. It might appear to be odd on the first go, yet once you get its hang, you can turn into a smaller than expected mogul in the real estate industry by essentially scaling out this one single strategy. It works, and it’s touted by a portion of the world’s best real estate investors.

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