Blog - Page 13 of 31 - mspassiveincome

Beginner’s Guide to Passive Income (3): Legal Asset Class Cycles, Returns, and Entry Points

January 21, 2025 / 182

Continuing from the last post, this time we’ll dive into the terms, returns, and entry points of the Legal asset class within passive income. To provide a full picture, let’s first look at the standard practices in the market and then explore how my own approach differs through tailored product design.Market StandardsLegal Lending Type: Part of the credit category, structured as debt instruments.Returns: Typically, 8–12% annually.Cycle: Usually 3–5 years.Entry Threshold: For top-tier names like Goldman Sachs or JPMorgan, entry starts at 7 figures, though $250,000 options are also available. (These are just illustrative examples—you’re welcome to fact-check on your own!)Access:... Continue reading

Beginner’s Guide to Passive Income (2): Common Asset Class

January 21, 2025 / 184

In the broadest sense, passive income refers to any income you can earn without actively managing it or investing your time and effort. However, my focus is specifically on passive income from alternative assets.Let’s first clarify what alternative assets are and why I choose to focus solely on passive income within this category (as opposed to the broader definition of passive income).What Are Alternative Assets?Put simply, alternative assets are those outside the realm of mainstream asset classes.What are mainstream asset classes?These include the usual suspects, such as stocks, bonds, and cash etc. Even within these categories, there are passive income... Continue reading

Beginner’s Guide to Passive Income (1): The Beginning

January 21, 2025 / 204

I know the title of this article is a bit different from my usual style—neither catchy nor dramatic. However, after writing several hundred weekly posts and receiving countless questions, I’ve noticed a recurring pattern. People often ask: What are the most common types and asset classes for passive income?What are the typical returns like for passive income?How liquid is passive income? What are the usual terms?What are the common risks associated with passive income?What realistic expectations should I have about passive income, and what illusions should I avoid?Is passive income suitable for me? In other words, what type of person... Continue reading

Microlending 7 – Risks? Who Are the Lenders? How to Participate?

January 5, 2025 / 218

Continuing from the last post, Ruddy explained that most lenders are from North America, and the team managing lender relations is entirely based in the U.S., so the majority of lenders are American. Interestingly, many employees initially joined as lenders, found it profitable, and later became part of the company 😂. The founder, however, is Kenyan and splits his time between Kenya and the U.S., spending most of his time in Kenya managing the credit union and local borrowers. Therefore, while borrowers are predominantly Kenyan, lenders are primarily North American.Since this is a lending model, not equity investment, lenders don’t... Continue reading

Microlending 6 – Return and Term?

January 5, 2025 / 234

Continuing from the last post, Ruddy explained that lender returns depend on the lending amount. If you lend less than $10,000, your annualized return is 12%. For investments over $50,000, it jumps to 36%, and for those putting in over $1 million, it goes up to a whopping 39% 😂. Moreover, after keeping the money invested for 13 months, lenders can decide each month whether they want to continue investing or withdraw their money starting from the 14th month.Later, when I talked to others, I learned about another option they offer—one that allegedly guarantees principal protection (how they guarantee it,... Continue reading

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Beginner’s Guide to Passive Income (3): Legal Asset Class Cycles, Returns, and Entry Points

Beginner’s Guide to Passive Income (2): Common Asset Class

Beginner’s Guide to Passive Income (1): The Beginning

Microlending 7 – Risks? Who Are the Lenders? How to Participate?

Microlending 6 – Return and Term?

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