Stable Income Options
You do have other options besides the stock market for stable income besides CD’s and dividend paying bonds. Investors at some point in their life want a consistent stable income to avoid the volatility of the stock market or other alternative investments. Alternative options might be a little more work but well worth the investments return.
Trust Deed Investing for Stable Income
Trust deed investing is simply investing in loans secured by real estate either secured by first trust deeds, second trust deeds, or mortgage and promissory notes. If structured properly, trust deed investments offer an attractive current yield with relatively low risk. Trust deed investors usually earn high 8 to 12 percent annually depending on the situation; see www.expresscashflow.com/bridge-loan for example.
Investors can opt to invest in a fractional trust deed, the entire trust deed or in a fund that invests for them. Most brokers and investment firms require minimum investments in trust deeds, but the exact amount will depend on who is offering the investment. Some investment firms allow investments as small as $10,000 while others require $100,000 or more. The minimum amount will similarly vary by broker.
Why Do Trust Deeds offer higher returns?
Some professional real estate developers specialize in flipping properties – that is, buying them, fixing them up, and reselling them for a profit. These developers often need loans to pay for the properties and renovation costs.
Banks are reluctant to lend to these developers for several reasons, but speed is usually at the top of the list. Trust deed investors fill this gap in the market by offering the short-term loans the developers need. In return for making these loans, trust deed investors can earn attractive returns with relatively low risk.
CD Alternative – MYGA’s
In today’s chaotic financial markets cash is king and stable income is on the top of everyone’s list. Multiyear guaranteed annuities (MYGAs) are the annuity industry’s version of bank CD’s that deliver a higher yield. MYGA’s are insurance contracts purchased through a licensed insurance agent in your state of residence. You can research and buy them on the websites of agents licensed such as StanTheAnnuityMan.com and ImmediateAnnuities.com
MYGA’s annual interest rate is fixed for its entire term, which typically ranges from one to 10 years. Your principle’s value is guaranteed not to decline, plus all the fees, expenses and commissions are included in the quoted interest rate.
Peer-to-Peer Lending for somewhat Stable Income
If you want to get more involved in your investments peer-to-peer lending is one alternative to generate stable income. Peer-to-peer investing is when you apply for a loan and receive the funds from one or multiple individual investors rather than a bank.
Peer-to-peer term loans are usually one, three, or five years. These shorter repayment terms mean you can get rid of your debt a little quicker this way rather than if you were to take on a different kind of loan.
Treasury Inflation-Protected Securities (TIPS) for Vary Stable Income
CD’s and bonds may not be ideal when inflation is higher than average. TIPS help you keep up with inflation. TIPS are government issued bonds that aim to protect against rising inflation. The bonds principle adjusts with inflation and deflation for 5, 10, 30-year terms.
Stable Income Options Summary
There are several alternative investment options beside the stock market, but it will require a little more research then just clicking the Buy button. Trust deed investments via a fund that Coastal Capital offers could deliver twice the returns of TIPs and MYGA investments. To learn more about Coastal Capital’s fund, their investment strategy, stable returns over time since 2007 and their minimum investment please visit www.CoastalCapital.com for stable income options.