Investment Strategy You Need to Look into

Investment is one thing that a lot of financial advisors will tell you to do and if you are working and being paid salary, they will tell you to invest in 401K or retirement funds as this will increase but in this post I will be talking about two investment strategy; Cash flow and Capital gain investment. Do not take anything written on this post as a financial advice, everything written on the post are learning and recreational purposes and should be taken as such. If you invest your money based on anything written on this post then you bear 100% risk for your action. Please seek the advice of a financial advisor before investing your money.

Cash Flow Investment

1

Having an asset that pays you regularly either hourly, daily, weekly, monthly or yearly is a capital flow asset, and capital flow investments are investment aimed at growing wealth income over the years. A very good example of cash flow investment includes real estate, dividend stocks, giving short term loan flipping cash for interest. In most cases, incomes from this assets are either withdrawn or used to reinvest. This is often meant for people who are investing for retirement and financial freedom. This type of investment is good for passive income and the owner doesn’t have to work at all while the cash flow keeps coming in.

Capital Gains Investment

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This is an investment that involves buying cheap and selling at a higher price so as to make profit. Buying a product for X amount and selling it for Y amount is very what capital gain investment does. The difference between X and Y is the profit/gain from the investment. A good example of capital gain investment includes flipping, buying cars at a cheap rate and selling at a higher rate, buying stocks at a lower price and selling it at a higher price.

Are they both good?

It is never too late to decide your investment future and using one of this two is a very good way to invest. The earlier you start investing, the better for you. Please invest wisely.