Investing, performing assets, non performing assets and Steem.

I was explaining Steem and Steemit to an acquaintance recently, who is a real estate investor moving into the stock market so he can stop dealing with tenants and banks. He is currently invested mainly in optional stocks which pay a dividend and which he can write covered calls on. It’s a strategy we created ourselves called triple dipping. We call it “triple dipping” because we make money on the plan three ways.

First, we buy older established companies with a record of appreciation.
Second, we buy dividend paying stocks, so we collect a dividend quarterly.
Third, we buy optional stocks, which in addition to appreciation and dividends, we also sell OTM out of the money covered calls on to generate monthly income.

I should qualify this triple and state past performance doesn’t guarantee future appreciation, so we are only guaranteed two streams of income. But I think you will admit that “Triple Dipping“ sounds fun.

In addition to discussions of Triple Dipping, my acquaintance is very big on discussions of performing versus none performing assets. So much so that when traveling together we play a game where we pick things we see and classify them as performing or non-performing assets.

We once debated for an hour as to whether it’s best to own a home and use it as a rental property, assuming it’s rent exceeds it’s mortgage, so it’s a performing asset, ergo appreciating in value and paying me income, versus living in it yourself and using personal home deductions to reduce taxes on your personal income, and if these deductions change a home from a non-performing asset to a performing one.

I enjoy our discussions and one day proposed that Steem was at one time a performing asset, which made it much better then most of the cryptocurrencies on the market. I explained that for significant time periods in the past Steem increased in price. In addition to this appreciation Steem also produces income which can be “earned” from content creation or active curation, or “unearned” per USA tax code or “passive” in more common investing terminology, in terms of payments you earn from delegating your Steempower.

My friend was very impressed with the idea and actually decided that he would invest a small amount of his disposable income in Steem, since the price is low, and development on the blockchain is high, appreciation seems likely. Plus he feels he can “Double Dip” by earning passive delegation income. I think I just discovered another onboarding talking point.

Feel free to use it.

✍️ written by Shortsegments

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