Almost all of us or people desire to make as much money as we possibly could so that we can travel, afford things we favor. So what’s the best thing that money can buy as far as an investment for passive income or just in general? Just stop stressing. It’s so hard that annoying people would always ask what you do for a living; how much money you have, etc.
But the exact same generic answer is not understandable. It depends. What’s your goal? What do you mean it depends? We all have the same goal. It’s to make a lot of money and to be rich. So let’s figure out what it means to be the best short-term and best long-term investment ideas in the world.
A good investment idea needs to actually make money
The more money it makes, the higher the score. The easier it – the investments – is for other people to do, the higher score it gains. Thus, how strong or fragile are these blocks that I’m actually building with? How far can we push our investments before they break? How could we make a best long-term investment idea?
The higher the score, the less risk we have to take. And the last criterion is taxes. The higher the score, the fewer taxes we have to pay from our passive income, which means we get to keep more for ourselves, which means a higher Jike score from one to ten.
There are things that most people buy being assumed as a great investment. But in reality, they are just stuff we buy and we convince ourselves into thinking that they’re actually great investments when they aren’t. It’s just the coping mechanism.
And these things include collectibles, things like cars, coins, watches, Yugo cards, basically all the things you and I probably own and are the proudest of. However, these investments don’t actually produce anything of value. They just sit there looking pretty while you hope that the next guy who comes around pays more for them than you originally did.
Sadly, they don’t pay me any passive income at all. But to be fair, it is accessible to everybody, and anyone can do this all around the world, which is scored at eight out of ten now for safety. Leaving your money here isn’t something that’s a great idea. It can be damaged or stolen. Additionally, if you try to sell that rare and valuable thing, you might sell it for a profit today.
But tomorrow the mood will change and there goes your money. Thus, it now deserves a five out of ten. And it’s difficult to evaluate based on intrinsic value. When you do decide to go and sell it, there are no tax write-offs and you’re going to get hit with a 28 percent capital gains rate. That’s the best long-term investment benefit after you held on to it for more than a year. That is a three out of ten bringing the grand total of 18 out of 40, putting it in the last place.
This investment idea was introduced to me about six years ago. It’s also called Person-To-Person Lending. It’s where companies take our investor money and they lend it out to people and small businesses that were otherwise not approved from the traditional banking system for a loan.
This means they’re usually higher risk, which means they have lower credit scores, and we could get to charge them more money. Therefore, we make more and they get to borrow money they otherwise would have never had access to the traditional rate of return (around 4 to 7%, which is good).
So this can be rated at five out of ten for both the money and the safety because you can essentially pick and choose which way you follow. Just be careful because it is very easy to get started eight out of ten on the difficulty, which means you can just do this online in like ten minutes, but you might not get your money back because some people won’t be able to pay back their loans.
Now, as far as taxes go for these investments, these are taxed at ordinary income tax rates. For this aspect, it will be a five out of ten. It’s not as good as capital gains, but acceptable – five out of ten for a grand total of 23 out of 40.
This is when you get paid for. For example, it’s when you get paid eight percent for making a sale from a product.
It will be five out of ten on the difficulty score because it’s hard to create a product that other people know exists. It’s hard to advertise. That’s why you need a pretty big personal brand or a company backing you. For this reason, it’s called the royalty, because more than likely, you’re not the one to create your product. Some other companies will create your idea into reality. And if you want to try this for yourself, which I recommend you do, then try writing a course or a video.
Of course, teaching people how to do something useful, create a course on how to make money. Don’t become a guru, the more relatable it is, the more useful it is, and the more units you will actually sell. Since you’re investing in yourself, the risk is pretty low.
Thus, a high score of eight out of 10 is deserved. And as far as taxes go, you’re going to be paying them on Schedule C under your ordinary income tax rates, which, standardly, will be five out of 10 for a grand total of 26 out of 40.
Stock market investing, specifically, dividend investing
Last year, I made a little over six thousand dollars dividends. And I want to make a lot more next year once I pay my taxes and actually invest a lot more. But for this one, you can make money three ways from the dividend income, the dividend increases, and the stock value going up in price as well.
So for this one, I’m going to give the money a seven out of 10 and for the ease of use, because anyone can do it. If you have Robin Hood or Weeble and you’ve got your three free stocks down below, you don’t even have to learn how to analyze stocks or you have to do is buying a broad market ETF like Vietnam or Ph.D. and you’re good to go. Anyone can do this, which will be eight out of 10. If you do that, your money is not too much of a risk, especially if you’re buying blue-chip stocks. So I will say that it’s a seven out of 10 for safety.
In terms of taxes, if you make 40000 dollars or less per year, you will pay zero in taxes because of capital gains. And if you file jointly, that’s 80000 dollars that you can make completely tax-free, eight out of 10 for taxes for a grand total of 30 out of 40. If you want to make the most amount of money possible as quickly as possible with the most possible options, then there can only be one winner.
The investment idea of real estate is pretty difficult now. But of course, it’s could be easy once you know how. In comparison to dividend investing, it’s a lot more prohibitive because you need a lot more money and you need a lot more experience to actually be doing it right.
So for the difficulty factor, it will fairly be six out of 10. But if you can master it, though, real estate, pretty much a worst-case scenario, is already a great hedge against inflation, and it’s about as stable as a stable blue-chip stock. And its safety wins eight out of 10.
However, when it comes to taxes, it goes for property taxes. That’s a write-off mortgage interest. There are lots of different ways to write off your taxes to offset your income. So I’m going to give taxes a ten out of ten, bringing the total score to thirty-two out of forty-some honorable mentions.
I did not include CDs, bonds, high yield savings accounts because I don’t consider them investments as much as just places to park your money so it doesn’t lose any value. But the one thing I didn’t mention is something called private equity, which you might have heard of.
The minimum investment here is $250.000 and you need to have a minimum net worth of at least a million dollars to be considered an accredited investor. Think of the money that you make as a building block of life. You might be able to sell it or trade it in for lots of little pieces, but it’s what you build with it that really matters.
And if you want a bigger, fancier house, you’ll need more of these little blocks, which means you’ll spend more time and more time working. And for most people, that’s a never-ending, unbreakable cycle of working and spending.
I never learned the intricacies of day trading. I never had mentors. Is access to them and I didn’t have real estate parents that taught me how to do that, leveraged real estate, and take more risks. But as I get older, I’m learning more and more to take those risks. And we are who we are and we like what we like. Instead of worrying about where to invest your money and worry about increasing your income and then worry about building that savings rate, because the more money you can save, the more you keep, the more money you’re going to have.