Step 3: Collect Productive Assets
Productive assets insulate you from misfortune and build financial independence from your job. Income can come from both active sources (job) and passive sources (rents, dividends, interest, royalties, and business).
- Manage the managers and be the CFO of your financial life. Do it yourself or hire others. Either way, make sure that you know enough to confidently seek opportunities, choose advisors, evaluate alternatives, take action, and monitor the results.
- Set objectives and timeframes for your portfolio and fill it with productive assets having different job descriptions.
- Collect productive assets that generate cash flow now, appreciation later, or both from a wide selection of publicly-traded and privately-held interests in business, real estate, and intellectual property investments.
- Reinvest faithfully and put the proceeds of your investments back to work immediately.
- Diversify, dollar-cost average, and adjust in order to capitalize on opportunities from different types of assets and changing market conditions.
- Use leverage to magnify returns and watch selected parts of your portfolio grow more rapidly than others.
- Own your own business and gain the tax benefits of greater tax deductions and income management.
Dana Kunz