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E-BOOKTHE BEST WAYS OFEARNING AN INVESTMENTINCOME IN 2021www.accumulatecapital co.uk
2E-BOOK: THE BEST WAYS OF EARNING AN INVESTMENT INCOME IN 2021Who doesn’t want money for doing nothing? Passiveincome investments are investments that, once set up,keep earning money with little to no work from you.These passive income investing ideas won’t make you amillionaire overnight, but every little bit helps, particularlyin these troubling times.Here are a few passive income investing ideas that canearn you money while you sleep
3E-BOOK: THE BEST WAYS OF EARNING AN INVESTMENT INCOME IN 2021Traditional investmentsTraditional investments include stocks and bonds. If you’re comfortable with risk,these are generally good for providing a passive income. If you don’t mind takingmore risks with your money, invest in dividend stocks, but if you’d rather have lessrisk, invest in bonds.However, investing in stocks is not for the faint-hearted in 2020 and you have tohave a hearty risk appetite with so much volatility in the air. Many consider thestock market to be overvalued today, but there are still some good deals to befound if you know where to look.Over the long term, stocks are a sound way to profit from future inflation and thegrowing earnings of a well-run company. Now is a great time to buy for the longterm. You should ideally have a time horizon of at least five to 10 years with traditional investments.
4E-BOOK: THE BEST WAYS OF EARNING AN INVESTMENT INCOME IN 2021High-interest bank accountsIf you’re risk averse, bank accounts are a safer way to invest your money. Thedownside is that you’ll get lower returns than you’d get from higher risk products.Laddering is a simple, effective strategy if you have some spare cash.Dividing your savings into quarters: Invest a quarter into a three-month termdeposit (or similar high-yield account), a quarter into a six-month deposit, a quarterinto a nine-month deposit, and a quarter into a twelve-month deposit.Set them up to pay you the interest at the end of their term and then automaticallyroll over into a twelve-month term deposit. Voila – regular income with no furthereffort from you. The only complexity involved with laddering is sourcing the variousterm investments when setting up the strategy
5E-BOOK: THE BEST WAYS OF EARNING AN INVESTMENT INCOME IN 2021Peer-to-peer lendingThis isn’t technically a banking product, but it is regulated by the Financial ConductAuthority. Peer-to-peer platforms match people who want to borrow money with thosewho have money to lend. These aren’t bank accounts, and there’s a risk of losing yourmoney. However, they offer high returns to offset the risk. If you set your account up toinvest automatically, generally speaking it’s a good passive income investment.However, peer-to-peer lending involves a very mixed bag of opportunities which meansthere’s considerable due diligence involved in making the right decisions. Many of thecompanies raising funds on P2P platforms are startups or small businesses looking toexpand or develop their product range. This means they will have been impacted indifferent ways by the coronavirus pandemic which needs to be assessed beforecommitting capital to this market.
6E-BOOK: THE BEST WAYS OF EARNING AN INVESTMENT INCOME IN 2021Invest in an existing businessDespite the high risk, the right business can be a reliable source of passiveincome. Check Microgenius for community businesses, the Angel InvestmentNetwork for startups, and Funding Circle for businesses looking for loans.As we all know, many businesses have suffered through 2020 and continue toface considerable uncertainty for at least the next 6 months. Business ownersfrom all sectors are looking for investment or acquisition to help them out duringvery difficult times, which means there are definitely bargains to be had.That said, you have to have deep pockets if you want to invest in an existing business, and you have to be completely sure its model will represent growth goingforwards. As with other types of income generating investments, due diligenceis vital for finding the right opportunities for you.
7E-BOOK: THE BEST WAYS OF EARNING AN INVESTMENT INCOME IN 2021Sell intangible assetsMaking money by selling digital assets is a perfect example ofpassive income. While they take time and effort to create, oncecreated they take no further effort from you. When purchased, thesystem instantly sends the files.Depending on your knowledge and skills, here are some intangibleassets you can sell online ebooks and audiobooksonline coursesdesigns for print-on-demand productsstock photostemplates for common softwaresewing, knitting or crochet patterns (try Etsy)apps or Alexa skillsmusic licences (try Royalty Exchange)domain names (try Flippa)2020 has seen a massive increase in people selling digital assetsonline. With many of us restricted to our homes for chunks of theyear, the internet has become a breeding ground for ecommerceplatforms. Perhaps the best-known ecommerce platform isAmazon which provides everything sellers need to automaticallyfulfil orders. Although it sounds complicated and certainly takestime to set up, selling digital assets is a relatively low-risk way ofearning a decent passive income.
8E-BOOK: THE BEST WAYS OF EARNING AN INVESTMENT INCOME IN 2021Ads and affiliate marketingThe key to ads and affiliate marketing is a strong online presence on either your ownwebsite, or on any website that allows followers. You’ll need to invest time and effort toattract followers, but ads and affiliate marketing are proven ways to generate passiveincome.Online ads pay either per view or per click, so your income depends on your traffic.Google Ads are the most common way to monetise websites.When you post affiliate marketing links on your site, companies pay you a commissionfor paying customers who come through your link.If starting your own website doesn’t appeal to you, why not buy one that’s alreadymaking money and just keep it going? Flippa is a good place to start looking for anexisting marketing site.
9E-BOOK: THE BEST WAYS OF EARNING AN INVESTMENT INCOME IN 2021Rent out your assetsWe all have something we’re not using. That could be your spare room, a parkingspace on your driveway, storage space in your garage, or even advertising space onyour car. Why not rent them out?Of course, buy-to-let is the first thing that springs to mind but while real estate is anobvious choice, it’s not the only choice. If you’re not ready to become a landlord,invest in smaller assets. Storage units and parking spaces can be more affordablethan real estate, and a great passive income investment.
10E-BOOK: THE BEST WAYS OF EARNING AN INVESTMENT INCOME IN 2021Property Development FinanceA great way of earning a passive income through real estate is through an investment inproperty development finance. Development finance concerns the funds construction firmsneed to complete a building project. This can be a residential or commercial development,such as office, retail or warehouse space.While most investors know that property performs the best out of any asset over thelong-term, not many know that you don’t have to invest huge chunks of capital with development finance.Accumulate Capital’s property development finance opportunities have an entry level from / / 15k, which means you also spread your risk amongst other investors. The investedfunds are added to the ‘capital stack’ of institutional lending and our own equity holding,which provides all the funding required to complete a given development project.Accumulate takes considerable time to source the very best opportunities to pass to ourinvestors, which pay double-digit returns. As a consequence, we have development financedeals available in some of the most prestigious locations in the UK. Our track-record of successful developments has allowed us to develop significant experience of finding the verybest deals.Our development finance opportunities have short terms, which mean you can earn returnsannually and significantly boost your income. To find out more about our latest opportunitiesin Chelsea, Kingston-upon-Thames and Doncaster, contact one of our advisers today.
Canterbury Innovation CentreUniversity Road, Canterbury, Kent. CT2 7FGEmail: info@accumulatecapital.co.ukTel: 01227 936 996www.accumulatecapital.co.uk
These passive income investing ideas won’t make you a millionaire overnight, but every little bit helps, particularly in these troubling times. Here are a few passive income investing ideas that can earn you money while you sleep 2 E-BOOK: THE BEST WAYS
