The second wheel..
2. Paper Investment: This type of investment ranges from Shares/Stocks, Bonds, Treasury Bills, Fixed/Term Deposits etc. Any investment you make where what you have for keeps is certificate stating the details of the investment then it is known as paper investment.
The passive income made from paper investments are dividend, return on investment (ROI) or interest. A lot of money is also required to have a meaningful quantity of paper investments that can give you good passive income. This, however, does not mean one should not start small. Start from where you are now and build your assets to become a big one.
Leverage is inconsistent in this investment, in time past different countries and financial policies have allowed people to enjoy some level of leverages but it is no more today due to its inconsistency, the ratios are quit wide between 1 – 15%. I don’t score this highly but it’s good to diversify. People who get rich only get there because they invest with the long term in mind. Begin to do so now. In 5, 10, 15 or 20 years you will be glad you did.
To be continued.........Stay Tuned.
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