394: Beyond Real Estate: How to Cash Flow with Stocks

My portfolio is not what most would call diversified. I am about 70-80 percent real estate, 10-15 percent permanent life insurance and about 10-15 percent higher risk stuff. My only stock exposure is only high-risk stuff like mining companies on the Toronto Stock Exchange. To be clear, I am not advocating for this approach. That’s just what has worked for me up to this point in my life.

I should add that, unlike ten years ago, I am also far more open minded to expanding my investments into different areas. That’s why our investor club started working with a broker dealer/RIA  better versed in private equity and paper assets.

Unlike 10 years ago, I am no longer dogmatic in my “alternative asset or bust” position. In fact, as a general rule, I have softened on many of my more emphatic beliefs. My gray hairs have now convinced me that it just makes sense to have an open mind.

I still believe that alternative assets are where the life-changing opportunities are but there are other considerations such as sector diversity, hedging and cash flow. Cash flow is not what you typically think of when you think of paper assets, but it is something that you certainly can create with stocks in very unique ways that don’t involve simple dividends.

Andy Tanner wrote a book about this kind of investing in Robert Kiyosaki’s Rich Dad series and there is really no one better at explaining it then him. So, if you want to continue to explore other ways of investing your money, make sure to tune in to my conversation with Andy on this week’s episode of Wealth Formula Podcast.

Buck