On average, the S&P 500 provides an annual return of about 8%. That makes it a pretty great investment as part of a passive investment strategy. But it’s not the only form of passive investing you should consider.
So if you want to make passive income, here are the best passive investments you should seriously consider.
Stock Market Fund
You can always opt to pick specific stocks like Tesla or Apple or Alphabet. Investing in a diverse fund is a great way to ensure your gains help to balance out your losses.
As we saw above, investing in the stock market provides an annual return of about 8%, which isn’t bad.
But there are some other easy investments you should consider.
Historically, real estate is one of the safest investments you should make, and it’s also a good source for passive income. Buy a multi-unit property, rent it out, and enjoy making passive income through rent.
However, real estate is typically a more hands-on form of income. There’s fixing plumbing problems and hunting down renters. Not to mention the nightmares of bad tenants.
You can save yourself a lot of headaches by working with a property management company, but that also cuts into your ROI.
Self-storage doesn’t typically make a list of good options for a passive investment strategy. But it needs to be.
Self-storage is typically pretty recession-proof, even when the housing bubble burst. After all, when the economy is bad and people are losing their houses, they need somewhere to store their stuff.
And when the economy is good, people need a place where they can store the extra stuff they buy.
You can learn exactly how investing in self-storage works here.
A patent, a YouTube Channel, a blog, a book, a movie. Anything, where you can earn royalties long after the project is done, is a viable passive income strategy.
The problem with forms like this is they take a lot of time and effort upfront. Even then, they usually don’t pay off for years down the line, if they end up paying off at all.
And even then, once your project is bringing in passive income, it’ll likely still need regular maintenance or new content. So even when the job is bringing in money, there’s still work to do.
Nonetheless, if this is something you enjoy doing, it should be part of your passive investment strategy.
An Effective Passive Investment Strategy Isn’t Too Complicated
Putting together a passive investment strategy is about finding the right investments that manage your risk tolerance, and the amount of effort you want to put forth. Some investments, like the stock market, are riskier, while others, like real estate, require more work.
Investing in self-storage is historically a safer investment vehicle with a great ROI. If this isn’t an investment you’ve considered before, it’s time to start considering it.
Are you ready to start investing in an industry that historically has a much higher ROI than the S&P 500? Submit your investor application today, so you can put your money where it will work the hardest.