What is Residual Income:
The term “residuals” is used in the acting community as a way to bring in steady income many months or years after a gig. I like to find investments that bring in residuals rather than rolling the dice for appreciation.   Appreciation should just be icing on the cake.  And these days with money printing, the dollar price of an asset may go up, but the value may actually be going down.  That is what’s called a “market melt up.”  It seemingly is moving up, but value is actually moving down because inflation is eroding the value of the dollar.

Below are a few examples to earn residual income:
Dividend paying stocks
Building a business
Rental properties

Investing for appreciation can lead to disappointment in certain markets whether it be a stock market crash or a real estate crash. But if you focus on residuals instead, your focus is on bringing in steady income rather than the hope that the good days will go on forever.  

Rental properties:
This is my favourite asset class on bringing in steady residual income.  Even if the price or value of the home goes down, if you purchase for residuals rather than home appreciation, then the rental rates typically rise with inflation.  Now there can be small blips here and there, but typically the rent value grows steadily over time with inflation.  
Typically we save for a finite number in retirement, but what number is that?  Is it a million dollars?  Ten million?  Who knows, because we don’t know how long we’re going to live or what the future cost of living is going to be… or for that matter what taxes are going to be in place.  Who believes taxes are going down in the future?  So investing for residuals takes the guess work out of that magic number you need to save for retirement.  The goal is to buy enough residual income producing assets… that the steady income for those assets replaces your cost of living.  How much are your expenses, including vacations, dining out, etc?  That is the residual income number you want to strive for to be financially free!
Actor’s Guild gets it:
That’s why the actors guild rallied for residuals because an actor needs that steady income to get them between gigs. We want to invest for residuals that we can count on each month rather than hoping we’ve saved enough for retirement when we don’t even know how long we’re going to live.

Take the guess work out of retirement and learn more about residual income producing investments. Often times they offer way better tax incentives than a typical 401k in the US or RRSP in Canada. I have a new program I’ll be launching soon on how to find and purchase residual income producing rental properties in any market.  

You can join the waitlist at…

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