2 Passive Investing Ideas For Busy Schedules

Physicians, Corporate Executives and Entrepreneurs often find themselves with full schedules and no time to identify the strategies that will grow their wealth, cash and potential future income. But having a busy schedule doesn't mean that you must rely on your day job as your only means of growing your wealth, or that you must settle on low returns on your passive investments.

The Challenge You Face as a Highly Paid Employee or Professional

If you have a high-paying demanding job, it’s likely that you spend most of your mental energy on your day job. You don’t have the time to think about how to grow your wealth outside of your paycheck. You want your money to start working for you, rather than you only working for your money. But because of your time constraints, you really only have one option, which is traditional passive investments like your 401k, mutual funds, and bank savings products. The problem is that these generate single digit returns on your investment—typically under 5% annually.

There are better options known as alternative investments. They generally produce higher annual returns on investment such as 10%, 20% or more. Such alternative investments include real estate, for example. The challenge for busy professionals with demanding careers is that many alternative investments also require a more active role by the investor. This is true for real estate, whether you are a landlord, or you are doing fix-and-flips. Although the rewards can be high financially, you have to devote time to manage the investment activity itself plus learn the skills of real estate investing. For this reason many alternative investments are not a viable option for you.

The Best of Both Worlds

For the busy professional with no time, the ideal scenario would be an investment requiring no new skills and no hands-on management, but high annual returns. In other words, passive investments with high returns is the best case since it is truly the best of both worlds. They are not always easy to find, but they do exist. Private equity investing is an alternative investment that is a great choice for this purpose.

Private Equity Investments

Without going into too much detail about what private equity is vs. other investment types, we’d like to share with you why private equity investing as a strategy could be the best choice for you if you have little time to focus on choosing the right investment.

In a nutshell, private equity investing is where a firm who pools private investor capital uses that capital for mergers and acquisitions deals for profit. Then the firm splits the profits with its investors after the companies are sold.

A number of studies have shown portfolios that include private equity have historically delivered higher returns with only a moderate increase in risk. That’s great news!

Private equity also provides investors with access to a private, less-efficient market, taking advantage of pricing disparities. This means that when the overall economy is flat or down your investments can still thrive, especially if your investments are diversified.

The private equity space is one of the most lucrative investment arenas in recent history with trillions of dollars in investor capital under management. So there are many private equity firms to choose from, and almost all operate the same way, and offer generally the same investment opportunities for their investors. The one disadvantage of the industry as a whole is that almost all private equity funds are unable to accommodate small company acquisitions into their portfolios due to their need to deploy enormous amounts of investor capital, which small companies cannot absorb. In fact, we only know of one firm that specializes in the acquisition of small companies. It is GenX Capital Group. You can check them out here. Small companies also consistently offer far superior returns on investment, which GenX Capital shares with its investors. Since small company deals are faster, their investments pay out in half the time as most firms.

All this means faster returns with safer hands off investments, perfect for the busy professional or executive.