There are options that I am currently investigating to offer me protections from these higher short term capital gains rates, but they are outside the scope of this post.

I have found trading automated forex systems offers me the ability to create a passive cashflow of 5-10% returns monthly and quite consistently. It requires a thorough understanding of leverage and position sizing and a complete shift in paradigm from traditional investing, but after the learning curve, I would invest no other way.

Further, I have found that starting with a lower amount of investment capital and pulling profits periodically as they occur reduces my risk in the market until I have obtained a 100% return on my investment dollar. At this point, I can trade for cash flow as well as capital appreciation and realize an unlimited return on my initial investment dollar.

Many may argue this point, but few of them have any experience in trading the markets in this way. Be careful who’s advice you listen to. Many financial advisors tell you that systems trading is risky, but then they give advice to their clients about investments and make most of their money from the fees that they charge their clients rather than from their own investments.

Anyway, I am glad that you are seeking ways to invest for cash flow rather than capital appreciation. Real estate is an option, but carries significant risk in the event of a bursting bubble. It is hard to unload all of your real estate to prevent going upside down in your mortgages in a bubble economy. You must understand and be able to manage risk.

Massive Success,

Alan Mohring