7 Passive Income CASH FLOW ASSETS To Own For The Next 10 Years
Published: 2024-08-28
Status:
Available
|
Analyzed
Published: 2024-08-28
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Real estate prices may see a correction due to the need for better investment returns.
"we could number one see more of a correction in real estate prices because in order for someone to justify investing in real estate you need better returns"
Pending
The office market in big cities is facing significant vacancy issues, leading to less competition for buyers interested in office buildings.
"Compare that to something like offices in big cities if you look at a lot of offices in big cities many of them are sitting half vacant and so now when you're looking to buy say an apartment comp or an office building now you have much less competition because well not many people want to buy offices because they're worried about the future of the office market"
Pending
Properties in rural areas like Idaho are expected to yield higher returns compared to prime Manhattan locations.
"which means if you're buying a property in the corn fields in Idaho you're going to expect a higher return than buying a property in Prime Time Manhattan"
Pending
Properties in prime Manhattan locations are expected to yield lower returns compared to rural areas like Idaho.
"which means if you're buying a property in Prime Time Manhattan expect a lower rate of return than the property in the corn fields of Idaho"
Pending
A combination of skyrocketing mortgage rates and rising real estate prices makes it challenging to find good cash flow-producing properties.
"we have seen mortgage rates skyrocketing while at the same time home prices and Commercial realistic prices have also gone up so now today it is very difficult to find good cash flow producing real estate deals because the cost of borrowing money has gone up so much while also the prices of real estate have also gone up"
Pending
Low cap rates combined with rising mortgage rates are making it difficult to find profitable real estate deals.
"we're seeing that cap rates are still low while mortgage rates keep going up meaning the Returns on properties are still kind of low while the interest rate you have to pay on debt is going up here which makes it much more difficult to find a good deal"
Pending
Value companies are established, profitable entities that distribute cash to shareholders in the form of dividends.
"A value company is now a company that is established that's generating a profit and is maybe even paying a dividend a dividend is when a company pays you cash for doing nothing except owning it"
Pending
Companies pay dividends when they have sufficient profit and no more profitable internal investment opportunities, signaling a shift towards value-oriented strategies.
"so for a company to pay out these dividends they need number one the profit in their bank account and then number two they need no better use for this money where now they're making all this profit and they say well they have nothing better to do let's just give this money away to a shareholders that's when companies should pay dividends and that's when you start to see companies paying dividends"
Pending
Real Estate Investment Trusts (REITs) are legally obligated to distribute 90% of their taxable income as dividends, generally resulting in high dividend payouts.
"Real estate investment trusts also have some special rules where they are required these companies these real estate investment trusts are required to pay out9 90% of their taxable income their profitable their profit to their shareholders through dividends so REITs generally pay out High dividends"
Pending
Online savings accounts offer higher interest rates, potentially 3-5% annually, on FDIC-insured deposits without locking up funds.
"these are online savings accounts that will pay you higher interest on your savings for doing nothing except saving your money there now you want to make sure that you're banking with banks that are FDIC insured that are legitimate Banks but the advantage here is you can earn three if not four if not close to 5% in interest annually on your money"
Pending
Entrepreneurs can build businesses that operate independently by hiring a CEO and incentivizing employees with profit sharing, allowing the owner to profit from the company's assets.
"if you are an entrepreneur and you can build a legitimate business where now you have a team of people that can operate the company and then you can fire yourself as a CEO and you can hire a new CEO to run the company and you can incentivize them with some Revenue share or some profit share now you have a company you own the equity the asset you own the business itself and the business is working now the workers the employees in the business are working to generate an employee"
Pending
Royalties can be generated by creating intellectual property and then licensing it out or making it available for purchase.
"the way that you can generate royalties is you build some sort of intellectual property and then you license it out or you put this intellectual property out there so people can purchase or get access to your intellectual property"
Pending
YouTube videos, as intellectual property, can generate royalties through advertisement revenue shared with the platform.
"when I make these YouTube videos and I put them on the Internet well this is my intellectual property that now is on YouTube and when people watch these videos I get paid the way that I get paid is through advertisements you've probably seen that there's advertisements on these videos well I get a piece of those advertisements"
Pending
Writing a successful book can generate royalties from sales to individuals, schools, or corporations.
"you write a book and if you can write a good book that people want to read well it's going to end up in bookshelves people want to buy them schools might want to buy them corporations might want to buy them or Industries might want to buy them and then give them away to their people now again you spend the time effort energy and money to build this intellectual property the book one time"
Pending
Licensing technology to other companies can generate royalties based on the usage of that technology in their products.
"if you can create a product that another company needs this company will then license the use of your technology put this technology in their products and then pay you a penny or a dollar or whatever the fee might be every time they use a product"
Pending
Since 1970, housing costs have risen by approximately 1000%, car prices by 1500%, and university tuition by 19%, significantly outpacing wage growth of about 640%.
"wages have increased by around 640 over the same time housing costs have gone up by around 1,000% car prices have gone up around 1,500% and public university prices have gone up by around 19%"
Pending
The US dollar's detachment from the gold standard in the early 1970s allowed the government and Federal Reserve to print unlimited money, devaluing the dollar and causing prices to rise, leading to inflation.
"the cause of this is the inflation because in the early 1970s we had our dollar stripped from the gold standard meaning the dollar was no longer tied to Gold the government could spend whatever amounts of money it wanted the feder bank which is a central bank here in the United States could print an unlimited amount of money which meant that the value of our dollar started to drop causing the price of things to go up"
Pending
Projecting current trends, future household income needs may increase from one to two or even four incomes required to survive due to rising costs of living.
"if we fast forward now 10 20 30 years what is it going to be is it going to be enough for people to survive off of one income like it was in the 1970s is it going to be the same like it is today where people need two incomes to survive or will it be four income households as in two people need two jobs each in order to survive"
Pending
Wealth is built by owning investments, which can provide income even when not actively working, and inflation generally benefits investments.
"the way that you build wealth is by owning Investments because these Investments can continue to pay you even when you're not working and as you see more inflation that generally benefits Investments"
Pending
The internet offers accessible (though not necessarily easy) ways to earn money by capturing attention through various platforms like blogs, newsletters, social media, podcasts, and YouTube channels.
"the internet has made this so much more accessible not easier but accessible than ever before because now on the internet the name of the game is attention if you can grasp somebody's attention on the internet maybe it's with a Blog that you write maybe it's with a newsletter that you create Maybe it's with your Instagram page maybe it's with the Tik Tok page maybe it's with a podcast that you start maybe it's with a YouTube channel"
Pending
Attention is the primary currency online, and it can be monetized through advertisements on content like YouTube videos or podcasts.
"attention is the new currency on the internet and the way you get paid now is by monetizing the attention now the simplest way to monetize the attention is with advertisements right if you have videos on YouTube you have a podcast out there you're going to be able to have advertisements on your content and you can generate money"
Pending
The Federal Reserve has paused interest rate hikes for the first time in 15 months, despite ongoing high inflation, indicating a potential pivot in policy.
"the Federal Reserve Bank is officially starting to Pivot Jerome Powell has just taken his foot off of the interest rate accelerator with the first interest rate pause in 15 months and this comes at a time where inflation is still running hot"
Pending
Jerome Powell has indicated that further interest rate hikes are possible in the future.
"Jerome Powell still said that you need to be prepared for more rate hikes in the future"
Pending
The Federal Reserve Bank prefers to monitor core inflation, which excludes volatile energy and food prices, as a more accurate measure of inflation compared to headline CPI.
"core inflation is the CPI numbers and then you strip out what's called quote unquote the volatile numbers which are things like energy and food this core inflation is what the Federal Reserve Bank prefers to look at to measure inflation"
Pending
While CPI has dropped significantly, core inflation, the Federal Reserve's preferred metric, has only slightly decreased from its peak of mid-sixes to low-fives, remaining far from the 2% target.
"core inflation has fallen to the low 5% inflations so yes inflation has fallen CPI has fallen pretty drastically it's still very far away from its 2% goal but core inflation which is the core measure that the feder Reserve Bank likes to look at to measure inflation is still significantly high and it hasn't really Fallen that much off its Peaks we went from the mid sixs to the low 5% inflations"
Pending
The economy is slowing down more than anticipated, leading the Federal Reserve to consider that current interest rate hikes might be negatively impacting economic activity.
"the economy is slowing the economy is slowing faster than expected and they're saying maybe these interest rate hikes that we've been doing are starting to really hurt the economy"
Pending
The Federal Reserve aims to raise interest rates to around mid-5% to lower inflation and slow the economy gradually, avoiding a significant recession.
"what they hope will happen is that they will be able to raise interest rates to a certain level which now they're saying is going to be around the mid five% they're going to be able to raise interest rates to a certain level and this higher interest rates will bring inflation down and it's going to bring the economy down slowly but not cause any significant recession or any real recession at all"
Pending
A key question is whether the Federal Reserve will prioritize controlling inflation or supporting the economy.
"what is the Fed going to prioritize inflation or the economy"
Pending
Recessions can be necessary for resetting and cooling down an overheated economy.
"recessions are sometimes necessary to reset the economy nobody wants to admit this but the reality is recessions are sometimes necessary to cool down an overheated economy"
Pending
Within the next 24 months, a significant amount of debt, including corporate, commercial landlord, and government debt, will readjust at higher interest rates, increasing debt service costs.
"over the next 24 months we're going to see a huge amount of debt readjust at the higher interest rates and if interest rates continue to say high or if they go higher well that means that corporations and Commercial landlords and their government which is holding on to large pieces of adjustable rate debt as that debt readjusts your payments your debt service and costs are going to go up"
Pending
Investing in one's own business offers potentially unlimited returns, unlike real estate or stocks which typically yield 3-7% cash flow.
"my number one investment is into my own business and the reason why is because when I invest my money into my own business there's no limit to the types of returns that I can see right when I go out and invest in real estate which is my favorite way to generate cash flow my goal is to get a 7% cash on cash return"
Pending
Inflation, driven by money printing and government spending, has caused the cost of living to rise faster than wages, a trend expected to continue unless government spending and money printing cease.
"inflation has made the cost of living rise faster than wages period The cause of this is all the money printing because of the bettered Reserve Bank and the spending by the government unless the government stops spending so much money which doesn't look like it's going to happen and unless the Federal Reserve Bank says we're not going to keep printing any more money which doesn't look like it's going to happen we're going to continue seeing what we've been seeing over the last 50 years"
Pending
Learning how to earn more money is crucial for maintaining a decent lifestyle in today's economy.
"if you want to continue living a decent lifestyle today it has become so important to learn how to earn more money"
Pending
Aggressive inflation control by the Federal Reserve, while potentially hurting the economy, could create opportunities to acquire assets at discounted prices.
"if they stay aggressive on inflation that's going to hurt the economy and that's going to create more opportunities to buy assets at a discounted price"
Pending
The Federal Reserve's objective is to avoid continuous interest rate hikes that would harm the economy, while simultaneously working to reduce inflation.
"the goal for the Federal Reserve Bank is not to keep hiking interest rates because that's going to keep hurting the economy but they don't want to hurt the economy while they bring inflation down"
Pending