Hybrid Investing 101

Welcome to the over 250 new subscribers this week! Hopefully you like it here and learn a thing or two about money.

If all else fails, there will always be memes.

Quote

“Your calendar is a better measure of success than your bank account.” – James Clear

The Hybrid Investor

Today we are coining a new term, “The Hybrid Investor.”

While I won’t spoil all the details below, this is a method of investing I (and countless others) have been practicing for years without actually realizing.

For some reason, up until now it has remained a nameless strategy.

Despite its lack of a title, this approach brings together two of the greatest wealth building paths known to man kind (insert dramatic Nat Geo video of the Earth spinning).

Below you will find what it means to be a hybrid investor, why I think it’s completely underrated, and how it can positively influence your financial path.

Let me introduce you to Hybrid Investing. 🤝 

What Is Hybrid Investing?

What do most people think of when you say “invest.”

Their 401K, Roth IRA, the S&P 500, and dollar cost averaging come to mind. In reality, this skims the surface of the investing lake. Hybrid investors though, do a cannonball right in.

The definition of hybrid reads:

To cut to the chase, hybrid investing is…

A blended approach to building your wealth with investing and business.

With today’s technology one can be a successful investor with only a few clicks on a keyboard. That same technology also presents an extremely unique business opportunity our parents would have killed for.

It’s a mentality of being happy with your 401k and Roth IRA, but not satisfied. A moment where one goes “I can swing for the fence here” all without interrupting my traditional investing plan.

That’s Hybrid Investing. Taking care of your future self with traditional assets, but attempting to create that “big win” at the same time.

As we like to call it, a win-win approach.

Hybrid Investing Theory

Have your fail safe plan:

This is your traditional investments. Getting your 401k match, maxing out your Roth IRA, utilizing an HSA, etc.

The cool part about this step is it can almost be done on autopilot. As regular readers know, I am a huge fan of ETFs. With just a couple of these funds you can have a portfolio that’s ready to grow with minimal attention.

Business is extremely risky, so in case you fail, your traditional investments will be there to welcome you.

Have your get rich plan:

Read that again. Your “get rich plan” NOT “get rich quick plan.” There is a major difference between the two.

This is where one sets themselves up for the big win through business. What is determined as a “big win” will change from individual to individual.

The route for creating this massive W will be through a side hustle or business project that has the potential to outpace your investments. Here is an article on 5 weird business ideas if you need a spark of creativity.

For me, this is a combination of the “Cade Invests” brand and one other business going on in the background (will share more in the future).

How To Hybrid Invest

#1 Setup traditional investments - The first step is making sure you take care of your future self. 90% of businesses fail, this is your backup plan (though it’s still an amazing accomplishment by itself).

If needed, I have multiple pieces talking about 401k options, ETFs, and opening a Roth IRA that you can check out for assistance. Ideally just like your investments, you’ll eventually allocate a small percent of your monthly income to help with step two and three.

#2 Identify a strength/interest - This is where you setup your business idea. Chances are there is something you are passionate about or have an excessive amount of knowledge in. This could be from a hobby, or even your normal day job. Either way, this is a great place to start with a business.

Or scrap this step and just start where you see opportunity. I won’t judge.

#3 Leverage a business - Now that the “what” is decided you need to determine “how” to make money. Consulting, creating content, offering a service, and selling a product/program are a few of the traditional routes.

Remember, the goal of the money you put into this business is to outpace your traditional investments. It might not, and probably wont, happen right away but keep this in mind. Also, use technology to your advantage. Even if it’s blue collar work.

Depending on your “big win,” success in this step might mean an extra $1,000/month, replacing your 9-5 income, or selling your business for seven figures, everyone will be different.

Conclusion

Investing by itself is amazing, and I have no plans of stopping.

But it’s hard to beat setting yourself up for financial comfort, while also giving yourself the chance to achieve financial freedom.

That’s exactly what Hybrid Investors aim to achieve.

Let’s get this bag. ~ Cade

Cade's Finds

The Return On Hassle Spectrum - $11.5k income but only $2.6k profit. That’s what sparked the debate on the effectiveness of real estate investing on Twitter this week. No matter your side, Nick Magulli wrote a great piece breaking down where different assets fall in terms of return on hassle.

The Uncertain Future of Nuclear Power - Interesting Youtube video discussing where the world is with Nuclear power and what the future holds. Whether you love it, or hate it, it’s still worth a watch.

Best Memes

Refer two friends and add to your money toolbox.

Or copy and paste this link to others: https://cadeinvests.beehiiv.com/subscribe?ref=PLACEHOLDER

Nothing in this email is intended to serve as financial advice. Do your own research. Thanks for reading, if you have any questions, comments, suggestions, etc. about the email don’t hesitate to send me a reply.