The Differences In Feeling Rich Between Stocks And Real Estate

I was recently talking with someone from the Columbia, MO area that had built up a net worth of $2,000,000 across fourteen properties that generated for him an income of nearly $200,000 per year, which works out to over $16,000 per month. He occasionally reads the site here, but has found that dividend investing through common stocks doesn’t fit his personality too well because the amount of income generated is way too low for his liking. I get it—if someone has $100,000 at their disposal, they may want more than $3,000 in introductory income. With a $2,000,000 portfolio that consisted of stocks like Exxon, Coca-Cola, Colgate-Palmolive, Johnson & Johnson, and Procter & Gamble, you may only have a 3.0% yield compared to the market value of your stocks. That works out to $60,000 per year, or $5,000 per month. Making $5,000 per month certainly doesn’t feel as rich as making $16,000 per month.

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