About

Dear Readers,

In 2009, I immigrated to the United States with $0 to my name. I remember thinking to myself.. "welcome to the land of opportunities." After starting college, I had to take on student loans and became in debt which made me financially uncomfortable. Since we all know the cost of an education has been rapidly increasing over the past decade, I thought to myself that it was unsustainable and I had to figure out a way to generate income to pay-off the loans. Fast forward 10 years, I ended up paying off the principal and INTEREST. I also somehow was able to make it into the "million dollar club." 

Financial Savant was born in 2018 and has received a really good reception so far. This blog serves as a resource to help spur open discussions on generating income, saving, investing, and overall wealth management.
In 2019, 47 posts were released on Financial Savant with topics spanning different issues. My goal is to release at least 45 blog posts a year with a focus on Stock and Real Estate Investing as well as personal well being and productivity topics.

Every article written on Financial Savant is based on first-hand experience and pertain to ongoing current events within the financial and economic-sphere. 


For a detailed discussion of my favorite financial tools which I typically use weekly, you can visit the sidebar on the homepage. I have thoroughly researched all the products and use them personally. I have cut through the clutter so you do not have to.



You can get my content via e-mail by subscribing on the home page when I release a new blog post and to stay up to day on new content. Feel free to contact me using the form on the homepage at anytime if you have a burning itch to ask questions or would like to say hi!


Financial Savant is glad to be a part of the #FIRE movement as we strive to achieve financial independence opening up a world of possibilities while creating generational wealth.

After a few years of working in Corporate America, I noticed my drive started to be deeply rooted in my passions. I started to take on more passion projects outside of the regular 9-5. Over the past 10 years, I have been able to acquire a single family rental property fully managed by myself. I also have participated as a limited partner in various real estate syndication deals with investments in multi-family properties, hotels, commercial buildings, and medical offices. Being a steward of stock investing (since it was my first love), I have a built large portfolio of companies with strong balance sheets as well as index funds within my retirement portfolio.
With my W2 income, I was able to build passive income streams so I might one day be more free. The average millionaire according to a study released by the IRS has at least 7 sources of income:



Source 1: Dividends from Stocks 
The first and most common of the passive income sources is the quarterly dividends from the equity markets. You can purchase stocks on a stock exchange using a platform such as M1 Finance. Some stocks are classified as growth stocks and generally do not pay out dividends while some stocks are dividend aristocrats that have been paying dividends consistently over the years. It is not uncommon to see dividend yields in the range of 2-4% for such stocks. The tax treatment of a dividend stock depends on its classification. It could either be an ordinary dividend (taxed at your ordinary income tax rate) or a qualified dividend (taxed at typically a lower tax rate for most high income earners). Dividend stocks can also provide the upside of appreciation through growth if the share value increases past the cost basis.
Source 2: Interest from Fixed Income
Another popular instrument used to generate passive income is through fixed income. Typical examples are bonds and certificate of deposits (CDs). These are debt instruments with generally less volatility compared to the equity/stock market. The risk on a bond varies depending on what type of bond it is. Usually, junk bonds with lower credit ratings are risky when compared to government treasuries. I am a huge proponent of insured municipal bonds which are issued by states, cities, and counties since they are typically tax-free. You can typically realize a coupon rate of 2-5% on bonds while CDs can provide 2-3% annually in fixed income. CDs when compared to bonds are safer since you are guaranteed to recoup your principal if you wait till maturity. Depending on your age and risk profile, it is typically suggested to have some fixed income to balance out the volatility in the stock market. You can purchase bond ETFs on the M1 Finance platform.
Source 3: Real Estate Rental Income
Traditional real estate is one of the oldest forms of investment and it has been around for a while. Traditional real estate typically requires a high initial capital but it can be well worth it if the property is managed properly. Recent real estate vehicles such as eREIT (electronic real estate investment trusts) pioneered by Fundrise offers investors a new way to invest in the industry for a low minimum. You can also purchase REIT stocks on the M1 Finance platform to get some exposure to the real estate market. REITs are required to pay out 90% of its taxable income to shareholders so the yield of REITs are typically much higher compared to regular dividend stocks. The yields from REITs can range from 3-12%.
Source 4: Peer-to-Peer Lending
Another source of passive income is peer-to-peer lending. This is simply the practice of lending money to an individual or business for a specific return on the principal loaned. Similar to most investment vehicles, peer-to-peer lending has a varying amount of risk-to-return profile. The more risky loans typically have a higher return but it is important to be mindful of the credit rating for each of these loans. Typical returns within this space can range from 3-8% on average and the length of the loan can vary from case to case.
Source 5: Private Equity
Private Equity as a passive income source provides an opportunity to invest in alternative investments that are not listed on a public exchange. Private Equity is notoriously known to be open to mostly accredited investors. An accredited investor by definition is an individual investor who has earned $200,000 annually within the last 2 years or someone with a net worth of at least $1 million. The typical return is around 8-20% and the initial capital requirement can be high. There are private equity firms such as Blackstone and KKR who help fund private companies as well as engage in buyouts of public companies. Private Equity is a high risk, high reward asset class and can be very rewarding when things work-out as planned.
Source 6: Royalties
Royalties can take on many forms. From owning oil and gas minerals to owning rights to a book. Royalties are payments made to the owners for the right to use that product. Owning minerals passed on through generations is a great source of income as it typically requires no capital to exploit that resource and the capital is supplied by the whoever pays to be the operator. It is important to be aware of intellectual property laws as they directly impact and govern the rules that enforce legal rights to tangible and intangible assets. Needless to say, royalties that be a great source of passive income.
Source 7: Capital Gains

This is the classic “buy low, sell high” asset class. Capitals gains usually occurs when there is a profit due to the sale of a property or an investment. The investment can take various forms including selling a share of a stock to selling a property. It is important to be aware of the impact of time on capital gains tax rate as long-term capital gains (usually a security held for at least a year) are usually taxed at a lower tax rate. The return on capital gains can vary widely as that depends on market conditions.
Personally, here are my current passive income streams.



Moving forward, I tend to spend more time thinking about proper investment allocation. Investment allocation strategies could differ greatly depending on ones individual situation. My goal is to generate $200,000 in yearly passive income within the next 10 years.


Personal Philosophy
I live by a comment made by the late John F Kennedy. The quote serves as an inspiration to all to try harder in order to achieve goals we have set for ourselves.






About The Writer
* An Engineer by trade and passion who has been writing about personal finance online since 2018. Got my undergrad degree at New Mexico Institute of Technology and a Masters at Georgia Institute of Technology.
* Loves numbers and anything that has to do with Technology.
* Has lived in three different countries.
* Used to speak two languages pretty well. Now I only speak English since I have not spoken the other language in a while.
* Played collegiate soccer throughout undergraduate school and a big fan of soccer and basketball.
* Graduated undergrad with a perfect G.P.A.
* Fiercely loyal and will always take care of the people who helped out.


* Loves volunteering with United Way and helping under-served communities through education and guidance.

Contact Info
* Feel free to contact me using the contact form on the homepage for radio, podcast or written interviews. I’m always happy to help a reporter or broadcaster out.
Till next time,
Financial Savant



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