As we approach the latter stages of the journey, the level of sophistication with our investments is increasing. In this step, we’re going to look at the idea of building a portfolio of cash flowing assets. Back in the previous step, we already looked at the basics of investing. In step 8, we’ll take it a little bit further.
Dividend Paying Stocks
A portfolio of stocks that pay high dividends is a great and essential component of our portfolio of assets. There are many great multinational companies that have been in business for decades that have a nice dividend yield. Furthermore, many companies have a great track record of increasing the dividend payout consistently over the years.
While this is not an endorsement of these stocks, consider the following stocks a starting point for your research:
- Philip Morris Int’l (PM)
- Coca-Cola (KO)
- Altria (MO)
- McDonalds (MCD)
- Wal-Mart (WMT)
- Proctor & Gamble (PG)
Cash Flowing Real Estate
Another area you may start to consider deploying your capital towards is real estate. Now, most people look at real estate as speculative ways to earn appreciation. I don’t look at real estate as a way to flip a property. The better way to approach real estate is for long term cash flow. You may look at apartment buildings as potential ways to earn cash flow, or you may consider commercial real estate. The key is a sound, long-term tenant.
Entrepreneurship
Starting a business that can turn into a cash flowing asset is also a great way to build assets. Hopefully, some of the secondary income streams that you started in the previous step can have the potential to mature and turn into thriving businesses. A healthy cash flowing company can have a enormous impact on future wealth.
Jump To Another Step In This Guide:
- Step 1 – Assess Your Situation & Set Some Goals
- Step 2 – Get Out Of Debt
- Step 3 – Smart Money Management
- Step 4 – Boost and Diversify Your Income
- Step 5 – Reduce Housing Expenses
- Step 6 – Make Your Money Work For You
- Step 7 – Protect Against Inflation
- Step 8 – Invest In Cash Flowing Assets
- Step 9 – Pursue Complete Independence
- Step 10 – Make Incremental Improvements
