5 Best Income Producing Investments
Everybody wants to make their money work for them. And when it comes to investing, we’re all looking for the best income producing investments out there. But which income investments are the best? Which pay monthly? Learn everything you need to know about income generating investments that can help you achieve the financial goals you’re working toward.
What Are Income Generating Investments?
The first rules of investing smart are: know what you’re getting into, find ways to create passive income streams and be sure that you’re appropriately diversifying your portfolio. Combining these efforts means you can begin to actively invest in income-generating vehicles and effectively increase your monthly income while significantly improving your personal wealth.
Investing to generate income is just plain smart, regardless of what life-stage you’re currently in. For young investors, it can give a substantial head start towards retirement. Middle-aged investors can perhaps look forward to an earlier retirement. And for retirees, the potential to add an income stream to your fixed budget can open a world of opportunities in your golden years.
5 Investments That Pay Monthly Income
You have many options when it comes to finding the best investments for income. With just a little research, you can be smarter when it comes to finding opportunities that will literally pay off in the end. Let’s look at the five popular income-producing investments you may want to consider.
- Rental Income- Rental income is exactly what it sounds like. Investing in cash-positive real estate can translate to regular monthly income if the rent you charge exceeds your mortgage on a property. In addition to an immediate potential monthly income, once your mortgage is paid off, you can realize even more. The caveat with using rental property for income is it’s much more hands-on than some other opportunities. Be sure you thoroughly research and understand the requirements and responsibilities of being a landlord and look at the expenses that are included with property maintenance and upkeep. Owning rental property isn’t for everyone.
- Stocks, Bonds & ETFs- Stocks, Bonds and Exchange-Traded Funds (ETFs) are generally thought of as some of the more traditional and “easy” ways to create passive income. EFT dividends are paid to investors (usually quarterly); Stocks can pay out regularly and can be traded; and Bonds can act as a lower-risk investment (with a trade off being that they generally offer less of a return). There are pros and cons to each of these options, so it’s worth it to take the time to understand what each entails and the risk involved so you can determine what best aligns with your investment strategy goals.
- Sharing Assets- The relatively new concept of sharing assets can return anywhere from a few hundred to a few thousand in your pocket every month. From cars, to a room in your home, to full property rentals and more...these days, virtually any high-value asset that’s in demand can offer a residual income stream. New apps and platforms make it a snap to competitively market your asset, making the sharing community more viable than ever before. AirBnb and Turo are making the concept of “borrowing” houses and cars the norm. Now, that vacation home you invested in or that extra vehicle you don’t use every day can suddenly become a reliable source of income - something that was largely unimaginable just a decade or so ago. And the opportunities are endless. High-end photograph equipment, bicycles, you name it and it could be something you might be able to earn income off of.
- High Yield Savings Accounts- For some, high yield savings accounts really are the tried and true option for putting money in a safe place while earning a bit more. Given the right circumstances, you may be able to accrue significant interest on the balance of an account, which can translate into a source of income. A major benefit here can be maintaining liquidity (access to your money). Some investors are leery about tying up their money, which may be required with more risky investment alternatives. To get the most return on your money in a high yield savings account, you might want to think about the advantages of using online banks, which can offer a higher interest rate.
- Crowdfund Real Estate- Crowdfunding Real Estate can give you access to large real estate investing opportunities that you may not be able to afford on your own. By going in with other like-minded investors, and pooling your money together, you can invest in a piece of substantially larger real estate projects that allow you to see a better return on your money.
If you’re looking for sources of income outside of the stock market, real estate crowdfunding can be a great way for you to diversify your portfolio in a fairly hands-off deal that you won’t have to spend a lot of time managing. New platforms are making it easier than ever to dip your toe into the world of property investing. Companies like Connect Invest are partnering with funding giants like Ignite Funding to make the process seamless, simple and accessible.
Connect Invest Income Producing Investments
If you’ve ever seriously thought about investments that pay monthly income, now is the perfect time to act. Connect Invest makes it easier than ever, with low minimum requirements, consistent monthly payments and short terms that won’t tie up your money for years on end. Check out our Investment Listings today - we think you’ll love what you see!