Renae Grace - Passive Income in the 21st Century

Copyright 2020 Renae Grace

Published by Renae Grace at Smashwords

Version 4- Last update: June 2020

hello@passiveincome21.com

Other books by thisauthors

Renae Grace has produced many books and trainingcourses about Financial Freedom, Real Wealth and PersonalPower.

If you liked this book, you shouldprobably check out http://onlinegigsandjobs.com

About the author

Renae Graceand her husbandSebastian are authors, investors and perpetual travelers. Theyworldschool their twin boys and are gaga about animals.

Table of Contents

Chapter 1:

Chapter 2:

Chapter 3: ?

Chapter 4:

Chapter 5:

Chapter 6:

Chapter 7:

Chapter 8:

UPDATE

June 3rd 2020

Australia

It's been 18 months since I launched thisebook and let's say that things have become quite interestingaround the world since then.

The market downturn and the "financialshenanigans from the Powers-That-Be" that I wrote about are wellunder way. It will last probably a few more years before the resetof the financial system is completed. Instead of the return ONcapital, investors will be eager to get the return OF capital. TheDavos crowd calls it The Big Reset.

We started cashing out of assets back inOctober 2019 when the bond market (specially the US overnight interbank Repo market) started making noises that triggered the smartmoney into a run for safety like rats leaving a sinking ship.

Right now our asset allocation is:

- 40% gold and silver bullion

- 20% Gold mining stocks

- 10% Crypto currencies (BTC, ETH)

- 30% in cash (in the form of 5% in the bank,15% in paper currencies, 10% in cryptos stable coins like USDT andDAO)

This is a Crisis Mode allocation that bringsvery little passive income up front, but will take advantage of thebiggest Wealth transfer in World history.

As I write this, the smart money is in USD.The smartest ones of them went heavy into gold, too.

To make a long story short: the US dollar isgoing from strength to strength, completely baffling economists andinstitutional investors like most pension and sovereign funds ofthe world (outside the US). They've been betting against the USDand it's eating them alive.

The take away here is that the dominos willfall in this order: Stocks and Real Estate > Bonds >$USD.

Commodities will not drop as much becausethey have already been in the dumpster for years. By the timestocks and RE are done with, expect something like copper to go foraround $1.25 a pound (historical low)... And this will be themoment to buy commodities with the 30% still allocated to cash.

There will be many other incredibleopportunities as well to use that cash. It will be a fire-sale. Bepicky.

The important thing to remember is to get ridof the cash BEFORE the US$ bubble pops (leading to hyperinflation).And remember: if the crowd is buying it, it's probably a bad idea.My old mentor used to say dance with the wolves, not thesheep.

So, you might wonder, It's all very nice butwhat's up with Passive Income?

Well, like you're about to discover, passiveincome needs an investment of time, money, or both. So, the trickfor the next 3 years is to become an expert in Time Investing.

In an environment where money dies, patienceis a great Time Investment. So is health, knowledge andrelationships. When the dust settles, all the strategies in thisebook will be safe again to use.

This is when banks (probably running on theBlockchain) will resume lending, rental RE will easily yield 20% ayear and stocks will have a P/E of under 6. Look for the Dow Jonesto be around 5000. In the mean time, as long as you can createIncome, passive or not, you'll be ahead of the crowd.

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How I discovered Passive Income

(This book is the product of an extensive interviewof my husband Sebastian. In the family, he's the financial guru andI'm the writer. His vision of success is to be rich and anonymous.I want to help people. I convinced him to let me borrow his wordsso we could teach Financial Freedom to as many people as possible.Enjoy.)

Passive Income wasn't always an obsession ofmine. When I got out of school, I had jobs. It sucked andtravelling around the World seemed a better proposition. Once I gotthe travelling out of my system, I became what they call aSerial-Entrepreneur. That was better money than a job, but I had nolife. The proverbial Cash Rich but Time Poor dude.

At least I started investing this money inreal estate and stocks (because that's what you do). It was morespeculation than anything else. It felt like I was gambling at acasino, with similar results. Did you know that gamblers,speculators and entrepreneurs have something in common? 90% ofthem lose money!

With these kind of odds, would you keep doingit if you knew of something better?

After many years of this roller-coaster, Iread this piece from the great Richard Russell, called RichMan, Poor Man. ( clickhere to read it all ).

His description of the wealthy investor hitme hard.

For Russell, the wealthy investor has one majoradvantage over the little guy, the stock market amateur and theneophyte trader. The advantage that the wealthy investor enjoyed isthat HE DOESN'T NEED THE MARKETS.

That made all the difference in the World,both in one's mental attitude and in the way one handles capital.The wealthy investor didn't need the markets, because he's hasplenty of income. Money is coming in weekly, monthly, yearly viabonds, T-bills, money market funds, stocks dividends and realestate. In other words, the wealthy investor never feels pressuredto "make money" in the market.

If there is no great values, the wealthyinvestors waits. He can afford it. He has Passive Income.The wealthy investor knows what he wants (buy cheap), and he willwait

months or even years for his next buy to comebecause he has the Luxury of Time.

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Enter the Luxury of Time

I was hooked. I wanted very much to not need themarkets or a business, thank you. I badly wanted the Luxury ofTime. But how do I do this? Is it even possible with my littlestash?

This Russell piece was written in 1973.Nowadays, Central Banks have taken retirees to the cleaners bydriving interest rates to the floor and turned everybody, their dogand their dog's pension fund into rabid speculators. No more easyPassive Income for you!

Also, I was in my mid 30's, it was too latefor me to use the power of Compound Interest (or so I thought).

The Japanese have a saying: A man iswhatever room he's in.

I wanted to be in the Passive Income room,even though the door was invisible. I had learned from mytravelling that You find what you seek, so I just started lookingfor it.

Jump forward 12 years. Passive Income is away of life for my family and I dont understand why there's notmore people using it.