Putin
New member
You live off investments in one of three ways, or a combination of the two ways. Simply put, you either spend your savings, spend the income your savings generates for you, or do a live off a combination of the two strategies.
Below are the three strategies in more detail, with a tiny bit of financial lingo thrown in.
1. Spending Your Money, or Investment Withdrawal Strategy - The first way to live off your investments is by saving enough money, so you can withdraw funds from your investment accounts to pay all your bills each month.
2. Spending Income Your Investments Generate, or the Income Streams Method - The second way to live off your investments is to own assets that generate cash flow, such as stocks, bonds, real estate or small business. Owning assets that generate cash flow allows you to pay the bills with the income you get from these assets.
3. Investment Withdrawal and Income Streams Combination - The third way to live off investments is a combination of using both funds withdrawn from your investment accounts and the income that is generated from assets that generate cash flow.
Below are the three strategies in more detail, with a tiny bit of financial lingo thrown in.
1. Spending Your Money, or Investment Withdrawal Strategy - The first way to live off your investments is by saving enough money, so you can withdraw funds from your investment accounts to pay all your bills each month.
2. Spending Income Your Investments Generate, or the Income Streams Method - The second way to live off your investments is to own assets that generate cash flow, such as stocks, bonds, real estate or small business. Owning assets that generate cash flow allows you to pay the bills with the income you get from these assets.
3. Investment Withdrawal and Income Streams Combination - The third way to live off investments is a combination of using both funds withdrawn from your investment accounts and the income that is generated from assets that generate cash flow.
