Yield vs. Return – Jerry Fetta
Investments don’t have to be overwhelming despite the fact that for most they generally are. I believe they are overwhelming because they are not discussed enough. Even when they are talked about with a professional, it is not a dialogue conversation. It feels more like the professional is talking at us and using industry terminology that is not commonly understood. I want to break down two of the only things you need to know about investing. Ready?
Appreciation. Appreciation is simple. You bought at one price and over the length of time you owned the investment, the price valuation went up. Appreciation is nice, but it provides the least degree of control, consistency, and predictability. Investments should never be bought on the potential for appreciation. The reality, appreciation is not even real if one does not sell the investment. And if it’s a good investment, why sell it?
Yield. Yield is where it’s at. Yield is income. Income means that the investment does not need to be sold to make money. Investments should be bought because of the income they pay. Why? Because there is a higher degree of control, consistency, and predictability. Lead with yield and if there happens to be appreciation, that is a bonus. Yield is the only thing I look for when I analyze an investment. My favorite thing about yield is that I can save the income and utilize it for another investment that pays an income. This turns into and investment snowball!
The moral of the story? Focus on investments that produce high amounts of income. Gross income is key. If you would like to learn more about income producing assets click here. On average my clients are able to secure real assets, that cash flow, and produce an 8-10% fixed annual yield within the first 90 days of meeting with me.
Own Your Potential!
Jerry Fetta is a husband, son of Yahweh, Entrepreneur and owner of 5 privately held businesses. Jerry lives in Alaska with his wife and 2 dogs. His no-nonsense approach to business, finances, and life speaks truth and provides clarity to his clients and followers. His personal mission in life is to empower millions of leaders to own their God-given, ultimate potential