Is passive income through positive cash flowing investments important to your retirement strategy?

Check out our video below where we compare an annuity savings plan vs. an investing strategy requiring life-long financial education. For simplicity, hypothetically both in this example will have the same rate of return. Are the results the same? If not, what are the differences? We look forward to your comments!

Music courtesy of Jason Shaw @

2 Responses to “Rich Dad Portland Oregon: Investing or Retirement Savings”

  • Clark A. says:

    Great job with this post. I think what you are saying is that with the example of 10 percent interest rate with the annuity / savings plan, that is the best you can do. You can not improve your “ROI.”

    Technically, the annuity / savings plan is bringing in a return in portfolio income. But, again, it’s only 10 percent.

    As one develops business and investing skills, they can, “far surpass” 10 percent ROI. When investing in business or real estate, as you said, a minimum of 35 percent is a more desirable ROI.

    They are both the same animal, just different breeds. With the annuity / savings plan, very little financial education is required, however will be limited to current rates. A set amount of money is scheduled for deposit each year, and money is not withdrawn from the account. This is the magic of compound interest.

    The person interested in learning about investing will have to take time to learn their craft. As they become more knowledgeable and effective, the ROI increases dramatically.

    As well, the investor utilizes the magic of compound interest. This is not to say all money earned must be applied to investing. Just as in the above plan, a set amount of money is scheduled to be invested. What goes in does not come out. It goes right back into investing.

    Is this the message I am hearing in your post? Thank you.

    • CTRR Staff says:

      Excellent feedback! An additional point I would clarify would be that a planned amount goes back into investing, and still maintains the compound interest effect. For example, if I am getting 100% ROI on an investment, I may decide to invest 50%, and put the remainder toward lifestyle or other expenses. You will notice this is far greater return than the savings plan described earlier

      As an investor, I am planning on developing passive income to far surpass my expenses (cashflow strategy,) and continue to expand my personal and business goals. Once my passive income generated from assets exceeds my expenses, I can then technically retire because I no longer have to work to pay for expenses. Because of commitment to financial education and experience, I can find better ROI on deals. Rather than planning to be poor as I get older, monthly passive income expands.

      We really appreciate your post and insight!

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