When everything’s going great, people like to take the credit for their good fortune, but when things go south, they start blaming something or someone else. With investing, when people lose money, they like to blame the money and the pursuit of money for their own problems. And they blame the players and actors underlying the money – the market, wall street, financial advisors – for putting them in their precarious financial situation. They blame everybody but themselves.
Warren Buffett has become a household name due to his massive success in the investing world. What makes him unique is that his story, and the investments he makes, are not particularly compelling. He does not take big swings at risky investing plays. Instead, he looks for high-quality companies that are fairly valued and invests heavily.
In 60% of cases where a family’s fortune is blown, it’s usually exhausted in one generation by the children of the person who created the wealth, according to Roy Williams, president of wealth consultancy The Williams Group. In 90% of the cases where a fortune is blown, it’s gone by the second generation, by the time the grandchildren die.
How do life insurance companies make money? From the law of averages. On average, the life insurance company collects more in life insurance premiums than it will ever have to pay out in death benefits. That’s because with hundreds of thousands, sometimes millions of policyholders with life insurance policies, most pay more in premiums than their families will collect in death benefits.
The camp seeking passive income to increase your retirement savings with safe consistent returns? Or do you fall under the camp seeking to build wealth through a compounding passive income stream?
No matter which camp you fall under, no doubt you’ve considered both stocks and real estate as passive investment options and the reason you’ve sought out passive income opportunities is because you either don’t have the time or feel like you don’t possess the expertise to actively trade stocks or actively invest in real estate.