So, Here's How it All Started.
Hey, it's Susan.
I'm the founder and publisher of the Income Investors.
Over the years, I've tried just about every investing strategy out there.
And here's the deal.
Most financial advisors will tell you to start an IRA or invest as much as you can in your company 401k but that's going to get you nowhere fast.
Between the limited investment options, relatively low returns, and crazy high fees you're screwed.
Wall Street has a habit of rigging the markets against individual investors – that's us.
I realized very quickly that if I wanted to generate big gains and take advantage of the miracle of compounding like my pal Warren Buffett, I had to do something very different.
And that's how I landed on income investing.
There's a big problem with investing for “equity.”
In a nutshell, it's that equity doesn't pay the bills.
And there's a vicious cycle that exists for this type of investing.
For example, if I invest in 100 shares of a stock like Google, I generate unrealized gains when the stock increases.
Unrealized means it's just on paper because I haven't “realized” the gains yet.
The only way to realize those gains and earn income, is by selling my shares.
I have to find something else to invest in so that I can realize THAT gain and so on.
I don't want to sell my investment in order to have my investment dollars produce INCOME for me.
Because that's not INVESTING that's TRADING.
And I'm not a trader. I didn't work this hard to be tied to a computer all day. I have a life to live just like you!
I want to invest in something – a stock, bond, crowdfund, loan, whatever – and have that investment produce INCOME.
That income can be in the form of a dividend or an interest payment – it doesn't matter.
What does matter is that my investment is now producing income – real cash money – that I can spend today or reinvest for componded growth.
The Miracle of Compounding
Here's how this lil miracle works.
Say I invest $5,000 into an investment that yields a 13% dividend (we have several in our portfolios).
In year one, those $5,000 dollars I put to work have done a great job earning $650 more dollars.
All passively meaning I didn't have to do anything for it – it just automatically got deposited in my account.
In year two, my $5,650 is now earning that 13% and since I have more dollars out there working for me, I earned more income – $734.50 to be exact – and now I have $6,384.50 dollars working for me.
In year three, my $6,384.50 is now earning that same 13% and returning even MORE income – $829.99.
Now, I could continue to reinvest the income my money earned OR I can take the cash and spend it on something fun but I still have the initial dollars I invested working for me.
I don't have to sell any shares in order to get that money.
Once I figured this out, I made some adjustments in my portfolio and put my money only into income investments.
It's kinda like I have a whole army of dollars and I sent them out into battle with strict orders to capture as many other dollars as possible and bring them back to me as little POW's.
And that's how I ended up here with a brand new mission in life AND business.
We're creating the world's largest community of income investors and I hope you'll join us!