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Money Rehab with Nicole Lapin

3 Easy Ways to Make Passive Income From Investing

Money Rehab with Nicole Lapin

Money News Network

Education, Self-improvement, Business

4.41.4K Ratings

🗓️ 14 March 2025

⏱️ 11 minutes

🧾️ Download transcript

Summary

You’ve heard the old investing advice: “buy low, sell high.” But what if we told you that selling isn’t the only way to make money from your investments? Today, Nicole breaks down three easy, low-maintenance ways to generate income: bonds, high-yield cash accounts, and dividend stocks. Whether you’re looking to diversify your portfolio or just want your money working for you while you do literally anything else, this episode has you covered. To start exploring your passive income options today, go to public.com/moneyrehab All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, member FINRA & SIPC. Public Investing offers a High-Yield Cash Account where funds from this account are automatically deposited into partner banks where they earn interest and are eligible for FDIC insurance; Public Investing is not a bank. Treasury accounts offering 6 months T-Bills are offered by Jiko Securities, Inc.,member FINRA & SIPC. Securities in your account are protected up to $500,000. For details: www.sipc.org. Banking services and the Bank Accounts are provided by Jiko Bank, a division of Mid- Central National Bank. For U.S. Investments in T-bills: Not FDIC Insured; No Bank Guarantee; May Lose Value. Treasuries risk disclosures, see https://jiko.io/docs/treasuries_risk_disclosure.pdf. See public.com/#disclosures-main  Advisory services for Treasury Accounts are provided by Public Advisors, an SEC-registered investment adviser. Public Advisors and Public Investing are affiliates and both charge a fee for their respective services. For more details, see Public Advisors’ Form CRS, Form ADV Part 2A, Fee Schedule, and Treasury Account page. *4.1% APY as of 2/4/25. APY is variable and subject to change.

Transcript

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0:00.0

I'm Nicole Lapin, the only financial expert you don't need a dictionary to understand.

0:07.0

It's time for some money rehab.

0:10.0

I'm sure you've heard the Wall Street cliche by now, buy low, sell high.

0:19.0

But selling stocks isn't the only way to make money

0:22.2

from your investments. You can actually make your money work for you through passive investing

0:26.8

income, passive meaning your money is working for you while you just sit back and let it do

0:32.2

its thing. Today I'm going to be talking about three very low maintenance ways to generate income,

0:38.3

bonds, high yield cash accounts, and dividend stocks. These options are great for those of you who

0:44.6

want to invest but don't want to be glued to a stock ticker all day long. Or you just want

0:49.4

some diversification in your portfolio. All right, let's get into it. First up, bonds. The set it and forget it

0:56.5

investment. A bond is essentially an I owe you. When you buy a bond, you're lending money to a government

1:02.9

or a company, and over time you get paid interest. And when the bond reaches its maturity date,

1:09.0

you get your original investment back plus that interest.

1:12.5

Now, before we get into different types of bonds, let's break down some key terms.

1:16.9

When you learn about bonds, you're going to hear the term maturity period thrown out a bunch.

1:21.1

I mean, as you just noticed, I said it a second ago.

1:23.9

A bonds maturity period is essentially how long your money will be invested and earning interest.

1:30.0

The next term you should know is yield. This is the return you earn on a bond expressed as a

1:35.8

percentage. It's calculated by taking the bond's annual interest payments and dividing it by the

1:41.1

bond's current price. So, for example, at the time I'm recording this,

1:45.2

the yield for a one-year bond issued by the US government

1:48.3

is 4.19% yield.

...

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