2 ms·

1. Buy few flats/houses and rent them out. This way your investment will always go up comparing to saving money in the bank and you'll get consistent income lik

• thaumasiotes 8y ago
  > Buy few flats/houses and rent them out. This way your investment will always go up comparing to saving money in the bank and you'll get consistent income like a salary. It's true that investing in real estate to rent can give you a loss compared to nothing, but I don't think this comment deserved the downvotes it got. This strategy offers a fairly significant psychological advantage. The old principle of staying rich is that you own some kind of wealth that gives you an income, and you spend out of your income. Mortgaging or, even worse, selling your principal is the road to poverty. The "modern" view of being rich as owning stocks that pay off by experiencing price appreciation makes this idea incoherent. Your entire wealth is principal and you have no income. For an asset that generates rent, or a stock that pays dividends, you have a much clearer conceptual divide between your stock of wealth and the income it generates, and therefore a much simpler idea of what it's OK to spend. If you don't quite trust yourself with the money, setting up a scheme that allows you to follow a simple bright-line rule of thumb isn't the worst thing in the world. Don't listen to people who say you should plan to spend the whole thing down so that you've finally drained it to exactly $0 just in time for your own planned death. Hold on to it.