4.4 • 1.4K Ratings
🗓️ 14 March 2025
⏱️ 11 minutes
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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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