Every income stream falls into one of two types: owned assets like rental property that give you both cash flow and appreciation, or loaned arrangements where you get high yields but miss out on the asset growing in value.
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there are only 2 types of income streams that are ever gonna exist within your portfolio. One is what I call your owned income streams. Now, your owned income streams are the ones where you own the asset behind the income stream itself. I want you to think of it like the golden goose that lays the golden eggs. Some good examples of this might be property investing, for example. You own the property, you own the asset, and behind that asset, you control and own the income stream as well. And the idea is not only getting the compounding capital growth of the asset, but you're also getting the systematic methodical income stream just rolling into your bank account year after year after year. Incredible elements to have within a portfolio. The second type of income stream is what I call the loaned income streams. This is where you are renting the income stream. You don't own the asset. A good example of this is we do a lot of lending to properties and to business. And don't get me wrong, we can attract some incredibly high yields.