Lots of us want to make money investing. But sadly, most of us have a day job. You may have been curious about passive investing, but what does that mean… really?
In order to be successful at investing, you have to devote time to it.
There’s no way around it.
Research is a big part of investing and that takes time.
You don’t want to end up in a bad investment and not have the time to pull yourself out, right?
There are also many demands on the time of traditional investors.
It’s can be full-time job itself, researching stocks and making decisions based on historical and predictive data.
If you’re looking to enter an emerging market, like we are in with our cannabis stocks, additional work needs to be done to assess the potential risks coming up.
With everything that investing requires, it’s understandable that people feel intimidated.
What about people with regular jobs?
Less than twenty hours a week of time for researching stocks?
Thankfully, there are more and more ways emerging to allow people to invest in the market. The future is opening up so that everyone can get rich!
Active investing is hard for new investors to enter and grasp.
Let’s start by going over the traditional investing world: It’s big, loud, and there are lots of different markets you can enter.
There’s stocks, bonds, and dozens of smaller variations between them.
There are penny stocks, things that look small that may actually be riskier than the big expensive stocks.
Companies familiar to you might not be the safest investment.
And what about investing in super-trendy subjects like cannabis or cryptocurrency?
Are those even worth looking at?
Investment trends come into the news every day, especially now that we live in the age of social media.
Information and updates about IPOs and new companies can sway stocks by the minute.
The actions of a single person can send a stock into freefall.
It’s no wonder that so many people feel overwhelmed. Who has time to keep track of everything?
Lots of people start their investment lives in crowdfunding.
This is an extremely valid method of investing in companies!
But with so many stories of crowdfunding projects not coming to fruition, people may be shy to enter this arena.
Heck, I backed a Kickstarter campaign for something called a TellSpec.
It was supposed to be a tiny wand I could wave over my food to scan for gluten (I'm a Celiac) and other allergens.
That was 5 years ago and I still don't have my TellSpec.
But let’s step out to other forms of investing.
What about real estate?
There are a lot of helpful tools for doing well in this market, especially if someone already has a working knowledge of real estate.
Strictly speaking though, real estate investing is still investing.
With more information comes more potential scams to be avoided.
Even working on an AirBnb investment venture requires time and diligence to do truly well.
“What’s the solution, then?” You’re probably asking yourself. “How do I invest at all if I’m a person who doesn’t want to quit their job?”
It’s easier than you think, thanks to passive investing.
Passive investing allows for profit share in exchange for control.
Passive investing is a growing trend in investing that only seems to be picking up speed. It’s easy to see why—if you don’t know much about investing but have money to spend, there will be people out that want to work with you!
But passive investing techniques do require a tradeoff from the investor (you).
Most passive investment setups involve a surrender of control on your part.
You may be investing in riskier situations, such as court cases.
Your funds may be used at the discretion of a firm that may not ask for feedback or recommendations.
Now, for most people this more than a worthy tradeoff.
Who wants to spend the time and money researching when someone much smarter than them can take their money and grow it?
There are also different levels of involvement in some passive investment companies, such as those around turnkey rental properties.
If you want to make it a hobby and get involved in the house selections, you can.
But if you want an expert to take the wheel, that’s fine too.
This is not to scare you away from passive investing companies!
There are many people among them that take their work just as seriously as a builder or plumber.
They are about “push button profits,” making money with their computers like us here at Investor Insights.
This may be different or starting a business or swinging a hammer, but it’s just as important and requires just as much expertise.
Passive investing is still investing!
Passive investing allows you to use the expertise of other experts.
If the idea of an expert handling your money appeals to you, there’s only more good news ahead!
Within passive investing, there are plenty of options for people interested in working with experts.
Investor syndicates are an attractive option for people looking to invest in startups, especially if they live outside the major tech hubs.
If you’re living far from Silicon Valley, how do you know which up-and-coming startups are truly the most promising?
Best to empower someone with the ability to check out the launch parties on the ground.
Ditto for turnkey property rentals.
Say you’re watching TV, and a story comes on about the real estate market in Florida. People should invest! The market is hot, and you want in!
But there’s one problem: You’ve never been to Florida.
With the right turnkey rental property investment service, experts will select properties that are most likely to become profitable based on their research.
They have the time to visit and consult on the properties, with an eye toward empowering the people investing in them.
They’re offering up their expertise in exchange for the ability to invest at will. If it means participating in a hot market as soon as it emerges, why not?
For the investors among us eager to make a change in the world with their money, a popular passive investment technique is third-party litigation funding.
This is a crowdfunding technique where people with means invest in the legal fees of people undergoing court cases. Risky? Absolutely.
But this involves placing money in the hands of both investors and legal experts who want to use the money to do good by their clients.
You can earn a passive income from the work of people enacting justice for their clients.
Speaking of crowdfunding, there are also several ways to passively invest in financial ventures that are tied to a specific industry. If you’re willing to get creative in seeking out a sustainable pipeline, it’s amazing what you can find. Would you like to make money off of music sales? There’s a way to do it passively.
To be fair: You can realistically earn many of the same benefits from working with a financial expert as you would from passive investing.
But there are increased fees associated with experts. If they handle your money, you’re at risk of losing even more of your initial investment to fees.
The risks are different.
But for many, passive investing is a way to feel comfortable with the exchange at hand.
There’s less person-to-person contact over the money. But that doesn’t mean it’s not being looked after!
Even in passive investing, do your research.
Just like with any form of passive income, success comes as a result of research and self-honesty.
Look into the method you want to use before going all in. Consult a financial expert for advice if at all possible.
If a network for passive investing isn’t working for you, in terms of revenue or general service, do not hesitate to take your money elsewhere.
This is your investment and you should be getting your entire money’s worth.
If a market feels too mercurial or just not right for you, listen to those feelings.
There are lots of options for passive investing and not all of them may be right for you.
Passive investing: The wave of the future.
When expertise is taken out of the question, investing becomes much more accessible to the average person.
Even with all the research we’ve recommended, it’s still a much better option for those looking to integrate an investment career with a regular career.
There’s also no rule saying that you have to have no financial education to start passive investing.
You can start passive and move into active investment, or keep your portfolio mixed. We’re suggesting it as a place to begin.
You can make a lot of income from passive investing. Yes, you with your normal job and desire to learn more.
You can do it! Why not start?