On the one hand, there are new markets opening up all the time. This presents the budding entrepreneur with both challenges and opportunities. This article originally appeared on GOBankingRates.The world becomes more complex each year. What Is the State of Women & Money in 2023?īuild Your Credit Score with These Simple StrategiesĮxperts: 4 Safest Places To Keep Your Savings Keep an Eye Out for Rare Dime Worth as Much as $2,000 - How To Spot It The best robo-advisor will make sure you’re properly diversified and rebalances to maintain your allocation. Meade said those who need extra assistance in diversifying may find help through a robo-advisor. “Index funds can be a great, inexpensive way to invest but we still want to make sure we are diversified because some index funds may just represent one sector within the market,” said Meade.īy diversifying your investments, you won’t invest all of your money in one asset class. However you decide to invest your $10K, Meade recommends being diversified with your investments. Kendall Meade, CFP and financial planner for SoFi, said investing in a portfolio of stocks known as an index fund is a great option for passive income. “Savvy investors and celebrities like Shaquille O’Neal and Patrick Mahomes have long prized franchises for their ability to deliver diversification, stability and passive income streams,” said Rose. Now, it’s possible to buy shares in a portfolio of franchise locations as easily as investors would buy stocks or mutual funds. However, Rose said new online services have emerged to offer fractional ownership of alternative investments including franchises. They had high startup costs, which could start at $100K, and required either the owner or someone else appointed by the owner to manage the franchise. Until recently, franchises weren’t exactly the ideal option for passive income. Rose recommends franchises as a passive income investment. Kenny Rose is the CEO at FranShares, a service offering fractional ownership in franchises to retail investors. “You transfer money to an insurance company and immediately start receiving regular paychecks which won’t outlive.” Franchises “Generally, annuities are one of the simplest and most efficient products on the market for generating income,” said Paul Tyler, chief marketing officer at Nassau Financial Group. “This is why it’s best to rely on an experienced operator and invest alongside them until you have enough funds to buy your own asset.” “If you invest directly, the fees and other costs such as legal, due diligence and fund admin will outweigh your nominal dollar return,” said Holzmann. Take Our Poll: Are You Concerned the US Debt Ceiling Issue Will Endanger Social Security? Doing so will “pool” your investment with others. Jeff Holzmann, chief operating officer at RREAF, said the best option is to co-invest with a seasoned sponsor. However, investing with $10K is a bit difficult to do since most cannot buy property for that amount.īut it is still possible for those with $10K to invest in real estate. Real EstateĪs a broad category, real estate is a popular option for passive income. If at the end of year two the market is up at all from two years ago, you get 20% return,” said Chitrathorn. If it is down, your principal is still protected but rolls into year two. “If the market is up at all one year from the date of purchase, you can get 10% return. Doing so, Chitrathorn said, can give you a 10% return each year. It offers a full or partial return of principal at maturity.īob Chitrathorn - CPFA, CFO and vice president of wealth planning at Simplified Wealth Management - recommends investing in structured notes that have principal protection. Structured NotesĪ structured note, according to the SEC, is a structured product combining a bond with a derivative component. Here are the best strategies for generating passive income. If you’re wondering how to invest $10K, you may want to determine which passive income stream (or streams) would offer you the greatest ROI. A few examples include a photographer selling stock photos online or an influencer participating in affiliate marketing. Passive income, as a quick refresher, is a source of income that requires little to no effort to achieve it. $2,000 Quarter? Check Your Pockets Before You Use This 2004 Coinĭiscover: 3 Things You Must Do When Your Savings Reach $50,000 Multiple generations are putting their money toward earning passive income as a means of reaching financial independence.
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