Reader has 4 questions for AK.

Hi AK,

I am 29 this year, need some advice for building up passive income.

I have been in contact with financial reading on and off about investing and stocks and stuffs, but i always find that i dont have enough knowledge and skills to actually invest. I made a few investments from insurance agents and banking relationship managers which in the end made me realise they are all functioning for their own personal interest and i learnt the hard way as of course. I trust them too easily.

1.       As such I am thinking what can I do to gain the knowledge that you have to help me make decent decisions. Is there any specific steps that you take when you first started?

2.       What amount of initial capital that you start investing with? To be able to have $50k in 2011 required at least a start up of $500,000 with a 10% ROI.

3.       What do you think of alternative investments? Such as land banking or peer to peer lending?

4.       What if currently I can only come up with $100,000 in initial capital and monthly basis maybe $3-4k, what could and should i do with them to move towards what you are getting?

Thanks a lot for your time!

Regards,

W

Hi W,

I am glad that you have discovered that no one cares more about our money than we do. :)

In reply to your questions:

1. Read, read, read. Of course, it is important not just to gain knowledge but also to cultivate the right temperament.

2. I started investing 20 years ago when I was still an undergrad. Probably had $20,000 or less then.

3. Highly speculative, I will avoid.

4. I don't think anyone should use me or anyone else as a yardstick. As long as we are taking steps to improve our financial well-being (and investing in good income producing assets is one such step), we are moving in the right direction.

Gambatte! :)

Best wishes,AK


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