In the last 6 years, I focused on capital gain.
I think most of us focus on capital gain when it comes to investing.
Dividends are not that attractive and doesn’t help you make 30% when it comes to investing.
Thus, my old thinking is that “You need to focus on making 30% capital gain” in order to achieve retirement.
But turns out, that thinking is only PARTIALLY CORRECT
Without cash flow and the only pursuit of capital gain, you don’t truly realize your gain and you don’t get to spend it
The only way you would spend your capital gain is to on purposely exit your investments which would, in turn, reduce the number of shares you own
Psychologically speaking, it makes you feel POORER (which is weird but it is how I feel)
Since I have a very strong focus on saving money, taking money out of my investing portfolio and exiting investments this way FEELS wrong.
Let me ask you a question, super simple.
Assuming you have $1M portfolio, would you prefer:
1. 30% capital gain?
2. $300K in salary
In the past, I used to think they are the same.
But they are not.
$300K in salary is realized, non-changing, determined cash in your pocket.
30% capital gain can become 29% tomorrow or 35% the next day.
You never take it out, it is never yours.
That’s why I created Week 6 – Monthly Passive Income strategy within Investing Accelerator.
I am glad I created this module because it turns out to be one of the most important pillar to a good predictable retirement.
The ability to generate predictable cash flow to a reasonable degree on-demand is SUPER IMPORTANT.
In hindsight (after retirement), I gotta say – that’s such an important skill to learn
And you can’t easily achieve it by investing in S&P 500 using a buy and hold strategy.
So if you are part of Investing Accelerator, GREAT! I got you taken care of.
If you are not part of Investing Accelerator, go learn it. Don’t let anything stop you from learning this skill.
Final note – I am about to do an important UPGRADE to monthly passive income which will completely change my view on how to generate cash flow from Investing Accelerator.
It’s monthly passive income on steroids
But first –Â I will execute it, achieve success, get results, figure out how you can do it safely, simplify it, and report back to you in a few months.