passive income

A Small Deal in Real Life – Preference Shares

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Dear Cashflow Players,

Still remember in thepreference-shares game there is a small deal card call “2 Big Power” or “DIV2U”? There was once I got $23,500 passive income per month in my Cashflow Game because of those deals as I have about $1.1 million in cash. The question now is that is there such deals in real life?

For example, DBS is issuing out $500m preference shares for retail investors that will pay 4.7% a year for 10 years . This definitely beats fixed deposits rates but it is not risk-free and comes with potential pitfalls. The major pitfall is that the price is never fixed and will fluctuate according to prevalent interest rates and market conditions. Baring any financial disasters, they are general quite safe.

Hence, if one person have about $1.1 million in cash to buy the preference shares, he or she will get roughly about $51K per year which works to about $4,300 per month of passive income. The question now is do you have any other streams of passive income to protect this paper asset (Remember Money Velocity)? 

Max Tay
Passive Income Guru

P.S.: You can read more about other ways to create Passive Income – 9 Ultimate ways to create Passive Income in my blog.