Sep 18, 2020

How to Make Passive Income with Yieldstreet

Recessions are inevitable, as they are a recurring economic phenomenon. And for most of you reading this, this economic recession isn't your first rodeo. One thing we've learned from previous downturns is to plan for uncertainty by looking for alternative sources of money. Furthermore, diversification of your income stream can enable you to withstand today's financial risks and future macroeconomic woes.

You may consider the traditional financial products, like CDs, money market accounts or stock funds. But the truth is, most of these instruments are tied to our current anxiety-inducing macroeconomic conditions. In addition, stocks and real estate are overvalued anyway and can take a nose-dive any day. In addition, saving money in a CD or money market account doesn't make as much sense when the government just devalued the US dollar by printing trillions.

The problem with these investments is their correlation with today's economic conditions. Our prime objective with creating these new income streams is to diversify away from these typical markets, without bearing too much risk. Consider a diversified and high-yield investment opportunity that can safeguard your investment with the Yieldstreet investment portfolio.

Hedging Against Traditional Investments

The Yieldstreet investment portfolio is comprised of asset-backed investments including Marine, Art, Real estate, and other asset classes. This diversified portfolio of investments with asset-backed originators offers us a risk hedging opportunity against the usual swings of the stock and real estate markets. Besides relying heavily on macroeconomic conditions, traditional passive income tools, like CDs and money market funds, often lack innovation and offer lower guaranteed returns. In addition, fixed and long-term investments typically require investment commitments for a longer period ranging from 5-30 years. Long-term investments with securities and bonds offer certain returns but lower effective yields.

However, a Yieldstreet portfolio often includes investments that have little to do with macroeconomic conditions, yet offer competitive returns. For instance, at the time of this writing, income seekers can invest in a short term 180-day secured note. The note issuer (a subsidiary of Yieldstreet) will use the raised capital to prefund upcoming investment offerings before they launch on the platform. Investors can also participate in loans collateralized by a collection of artwork through a purchase of notes. This offering has performed as expected since its initial launch several months ago. This one has an eyebrow-raising minimum of $10,000.

Return on Investment

As an investor, you have rolling investment options on Yieldstreet that last from 6 months to 5 years with a cumulative average expected return of 12.58% annually. Of course, your exact investment returns will depend on your choice of investment funds. The IRR could range anywhere from 8-15 % annually, with the higher yields being correlated with higher risks.

If you’re looking to diversify your investments on Yieldstreet impassionately with a single investment, then the Yieldstreet Prism fund could be your best bet. The fund comes with a highly diversified portfolio, IRR of 7% and maturity date of March 2024. As it says on the website, "With a single investment, the Yieldstreet Prism Fund allows you to build a fixed-income portfolio, spread across multiple asset classes selected by Yieldstreet. Since the initial offering on March 11, 2020, the Fund has raised over $25 million. Currently, the Fund has holdings in five asset classes: Art, Commercial, Legal, Private Business Credit, and Real Estate, and is also invested in Corporate preferred bonds."

Be an Accredited Investor

Yieldstreet has impressively reached a cumulative investment target of $1 billion, while the count of investors has reached over 100,000. When the risks associated with traditional investments are so correlated with factors such as inflation and interest rates, it's more important than ever to have what Yieldstreet offers-- alternative investments that have reliable, consistent returns.

To participate in these investment options, the only prerequisite for Yieldstreet is to be an accredited investor. If you are an accredited investor and fulfill the compliance requirements, you can invest your money in just a few clicks.