all about the basics presented by millennial cash-flow
TRANSCRIPT
All About the BasicsPresented by
Millennial Cash-Flow
Millennial Cash-FlowQuestions? Concerns? Comments?
All About the Basics
1. What is Cash-Flow?2. Active vs. Passive Income3. Options for Cash-Flow Investing
1. Stocks, Bonds, Mutual Funds, and Advanced Markets
2. Real Estate3. Online Business/eCommerce
4. Final Test of Your Knowledge!5. The End
Course Outline
Cash-Flow, (noun)
“The total amount of money being transferred into and out of a business, especially as affecting liquidity.”
So… What is “Cash-Flow”?
For our purposes…
Cash-Flow, (noun):
“The amount of money you earn by combining your ‘Active Income’ and your ‘Passive
Income’.”
So… What is “Cash-Flow”?
Active Income
Money YOU work for….
Active income is a Salary, or any “Work for Pay” money you earn.
If you have a “job”, you are earning Active Income
Active vs. Passive Income
Passive Income
Money that works FOR you…
Passive income consists of “Assets” you purchase with your Active income, or current Passive
Income.
You can even create businesses that earn you Passive income!
Active vs. Passive Income
Job
Active Income
Cash-Flow Investment
s
Passive Income
“How to” Financial Freedom
It’s very, VERY simple…
The sooner you start following this path,
The sooner you obtain Financial Freedom
Also,Financial Freedom = Retirement
So, What’s the Point?
Current Accepted Theories:
Social Security WILL either go bankrupt, or change significantly.
Our economy is NEVER predictable, and can go up-or-down at any point.
Your job is NOT guaranteed… “You’re FIRED!” ~Donald Trump
So, What’s the Point?
We’ll cover the following in this Basic Course
1. Stocks, Bonds, Mutual Funds, & Advanced Markets
2. Real Estate
3. Online Businesses / eCommerce
What are My Cash-Flow Options?
Stocks, Bonds, & Mutual Funds
Also, Advanced Markets…
Stock, (noun):
“The capital raised by a business or corporation, through the issue and subscription of shares.”
Basically, “Stock” is a piece of Ownership in a Business
What’s a Stock?
Bond, (noun):
“A debt investment in which an investor loans money to an entity, which borrows the funds for a defined period of time at a variable or fixed interest rate.”
Think of a bond as loan YOU give a business…that’s much more complicated
What’s a Bond?
Mutual Fund, (noun):
“An investment vehicle, made up of a pool of funds collected from multiple investors for the purpose of investing in securities such as stocks, bonds, money
market instruments and similar assets.”
Basically, a mutual fund is a SINGLE investment made-up of many different investments.
What’s a Mutual Fund?
Comparison:Birthday Cake & Mutual Funds
Birthday CakeIngredients
Eggs Flour Milk Vanilla Extract Icing Candles (?)
Mutual Funds“Ingredients”
Stocks Google American Airlines Facebook
Bonds 30 Year Bond 5 Year Bond
Full Disclosure – We will be covering this subject in greater detail in a separate module. Please consult with your financial advisor before you invest in advanced markets… They’re not called “Advanced” for nothing…
Markets Discussed Options Trading Futures Accredited Investor Investment Options
Advanced Markets
Not all stocks should be used for cash-flow, so be sure to do your own research.
You are paid in “Dividends”
Most Dividends are paid quarterly
Varying levels of Risk are involved, so AGAIN…
**BE SURE TO CONTACT YOUR FINANCIAL ADVISOR**
Cash-Flow: Stocks
Bonds have varying degrees of risk, AND have varying lengths of time that they are paid out.
DON’T be tricked by bonds. You should understand all of the terms associated with them, and know that terms like “High Yield” are not CONSERVATIVE investments.
I can’t stress enough… CONSULT with a Financial Advisor!!!
Cash-Flow: Bonds
Mutual Funds can be structured to pay you: Monthly Quarterly Semi-Annually Annually …and More!
These are (currently) the most common investments for the “Average” person, and can be tailored to fit your cash-flow needs by your broker.
Cash-Flow: Mutual Funds
Remember – Mutual Funds are a combination of multiple companies, and investments.
There are varying degrees of risk, and return.
Just like every other investment, you will trade risk for return.
KNOW YOUR RISK TOLERANCE
Cash-Flow: Mutual Funds
Real EstateThe investment that has created more
millionaires,than any other investment in history.
“Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; (more generally) buildings or housing in general.”
What is Real Estate?
For our purposes, think of real estate as either:
Your Homeor
An Investment Property
So… What IS Real Estate???
Asset vs. Liability
With an Asset…
With a Liability…
You
Passive Income
Liability
Active Income
Single Family Homes Multi-Family
Apartments Condos
Commercial Buildings Retail Shops Storage Facilities
Land
Types of Real Estate Investments
**Land is normally NOT a good “cash-flow” investment**
There are a wide variety of benefits to real estate including, but not limited
to…
Multiple Tax Advantages at the Federal, State, and Local levels
Can be more “Passive” investments if you choose to use a property manager.
The investor can use “Leverage”, to purchase the property.
What’s the Bottom Line?
As a reminder…
We will be creating and modifying our lessons/modules all the time, so be sure
to check them out for more in-depth knowledge about our other subjects!
Advanced Modules
Online Business & eCommerce
The low cost way to create great Cash-Flow!
An online business is simply a business that is located on the internet, instead of a “Brick and Mortar” store.
With your business based online, you allow your products to be accessed by anyone who has an internet connection.
All of this is driven by eCommerce, which is a fancy way of saying that a transaction is being
done online.
What is an Online Business?
Examples???
Online businesses don’t have to be GIANT corporations to be very successful for an individual.
There are many successful entrepreneurs that have created six figure incomes with simple sites.
Blogs, Affiliate network marketing, Dropshipping, and auction site selling are just a few inexpensive ways to make money, without SPENDING a lot of money.
What’s the Point?
Start-up Cost Compared to Real Estate
Online Business
Domain Name $13.00Hosting Account
$15.00Wordpress Theme $55.00Random Plug-in
$17.00
Total Investment$100.00
Real Estate
Property Cost$50,000Down Payment
x 20% (required)$10,000
Total Investment$10,000
This is without a doubt, the BIGGEST advantage to starting an online business!
Work from Anywhere With Internet
Set your own schedule But remember, the harder you work, the better it will
be!
There are a nearly INFINITE number of: Products to Sell Variations Businesses to Start Ways to learn – Starting with YouTube!
Other Advantages…
Online businesses are not always built to be true, Passive income investments.
However, they’re also an incredibly flexible investment.
They allow you to create good cash-flow, and have a great work/life balance.
Remember…
You’ve completed the test!
Remember that if you scored over 90%, you’ve earned a $10.00 Credit towards one of our
Advanced Modules.
Keep watching for new modules as we expand our library, and be sure to keep up with us at…
www.TheRetiredMillennial.com
Congratulations!