I have been thinking of writing this post reflecting on the top 5 investments I should be focused on
looking at in 2022 since the first week of January. I cannot believe that it is already February. However, it is better to write now than to procrastinate further
I will be talking only about long-term investments here and will not be talking about short-term opportunities. Before we dive into 2022, I want to reflect on what worked well last year and share the lessons learned.
Photo by Karolina Grabowska from Pexels
Investments in 2021
Cryptos
Religiously dollar cost averaged cryptos that I believe in. However, the cryptos have been down in the second half. Due to dollar-cost averaging (DCA), the account is at only a 4% loss. Expect these accounts to gain over 20% in 2022. DCA rocks.
Was looking for ways to create income through Cryptos and have been researching on various vehicles such as Sheesha Finance, DRIP Network, Anchor Protocol and FRAX Finance. Took a stab at the DRIP network in December with the money I could afford to lose and it is working way better than I anticipated so far even when the rest of the cryptos are on a slide.
Equities
DCA stocks in my Stash account and had fetched 21.7% for the year. I was expecting close to 27-28% but got squeezed because of the tech downside. I intentionally blended my portfolio with some dividend income stocks such as Realty Corp, Abbvie, and Dividend ETFs to get more income and reduce exposure to growth.
Real Estate
This is one asset class where I did not take many actions in 2021. I felt the market was too pricey and was waiting for it to fall. But, it never happened. I did not buy any single-family homes but was involved in multi-families.
Single-family homes: None. However, all the single-family homes purchased in previous years have appreciated considerably.
Multi-family Homes: One multi-family syndication in Houston, TX with a return of 120% in 4 years. I was involved in raising equities for couple more deals.
Private Lending: Have not added any new loans but the ones involved are moving well.
Content creation
Writing
Finally took this seriously and was able to write 30 articles in 2 months. I would like to thank every writer in the medium who inspired me.
Youtube
While my writing improved, I have not created many videos this year. Should get more active in 2022 creating videos and articles as backlinks to each other. We invested a bit in our website design and youtube channels and these look much better.
Have been active on Twitter sharing my thoughts and views whenever possible. Much better compared to last year.
Self Investment
Thanks to Medium, I have been reading a lot of good content throughout the year. 5$ per month for all the valuable content is more than worth it
This year, I have read around 15 books on Kindle. Some notable ones are Living like a monk, Mind Management, The Choice, PowerX Strategy, Trade For a Living, etc
Finally, was able to go on a well-deserved vacation to Maui, Hawaii to rejuvenate and come back fresh
Goals for 2022
Apart from trading income, I have a goal to earn 20k plus passive income. Your wealth is determined by how much income you can make without trading your time. This year, want to focus on how I can make income with assets that I own
Staking Cryptos
DRIP
Liking this token a lot with the opportunities it provides for passive income. I have already started generating weekly income on DRIP Faucet and DRIP garden contracts. Animal Farm, which is a new addition to the DRIP ecosystem, allows getting paid for providing liquidity.
I am super excited about 1% daily returns and am also getting paid for just sharing my experiences through referral bonuses.
Sheesha Finance
This token is a mutual fund in the crypto world. I like their positioning along with their management. Would be funneling more cash in this token to generate more income. Currently, they are providing 55% staking rewards and 105% if we also provide liquidity ( cannot remove for 2 years). Also, there is s a 4% tax on unstaking. Would be writing a detailed post about Sheesha Finance. Again, there is a lot of risk in staking as the token might lose its value and we may not make much income. DCA is the way to go I believe.
I have invested around 2k in Sheesha finance so far. Looking at it closely. The price has fallen to 156 from 230.
Anchor Protocol
Anchor protocol is based on Terra stable coin and has been generating around 19.51% APR. Since it is based on Terra stable coin and is backed up by TerraLabs, on the surface, it looks great for retirement. The basic premise of the Anchor protocol is that it can lend more with collateral and would have enough capital to pay interest on the deposits. Recently, there was a situation where they could not handle the payments as the number of earners was way more than the borrowers and TerraLabs had to infuse more capital.
I am watching this closely. I feel 20% is not sustainable and they might have to drop to 13-15% which is not that bad.
CRO
There is only so much we can save. How can we get some returns on our spending too? That is where the debit cards provided by companies such as Stash Invest, Crypto.com come into play.
I have been using stash Invest debit card for all my purchases and I get 1% return in the form of stock in my stash invest account.
I have been using crypto.com to convert my Fiat money to BNB and vice versa to use with DRIP Network. They provide a debit card that requires us to stake $4000 worth of their native token CRO for 10% APR and the hold period is 180 days . This card is much better than Stash Invest and gives 3% back on all the purchases along with reimbursement of Spotify and NFLX subscriptions and provides other benefits. I am more excited about 10% APR generated for CRO staked as well as 3% CRO back . $CRO is currently at .44 cents and we stand to make good profits even if $CRO hits $1 ( how much can it go down from .44 cents). All time high of $CRO is .92 cents currently.
Cryptos for Growth
I expect Bitcoin to go to a minimum of 75k this year. I increased the DCA amount per week in Bitcoin and Ethereum. Also, I DCA in the altcoins mentioned in the article below.
Equities
I continue to DCA but I have increased the period to two weeks from one week. I am going to reduce the exposure to risk stocks for now and may focus more on indexed ETFs like S&P500, Total Stock Market, Emerging market, and Meta ETF (a little risky but don't want to miss out on the trend). My goal now is to generate more dividend income than before along with growth.
Real Estate
We are planning to move to a bigger home this year. We have been in this home for the past 15 years and are super excited about it.
Single Family Homes
Due to the inflation, rents have gone up last year for all the homes owned and is creating a good cash flow. The prices have not reduced as I expected even in 2022 when the stock market melted in January. Want to add more units in developing areas such as Kansas city Missouri, Ohio, and Jacksonville, Florida. Why these places? Single Family homes are still affordable here and I have properties already in these states. I am also looking at Pennsylvania and Indiana for properties with at least 12% cash on cash return. I would be very picky and make sure that the properties selected are close to my 1% rule and 50% rule.
MultiFamilies
Last Year, I found raising private equity very profitable and may work with selected partners in 2022 creating a win-win situation for both of us. Also, will invest in one or two multifamily deals that could double my investment in 4 years. I have a few lined up and may invest as early as March.
Private Lending
I had a decent experience with Sharestates where I generated around 11% on most of my investments. Only one investment is in default and we are working with the borrower.
However, a bridge loan given to a developer has been working very well for the last 3 years and will be ending this June. I am expecting an extra 18% on my initial investment at the time of contract termination. I am also thinking of entering another Bridge loan with another known developer that could generate around 17.5%.
Raising Private Money
I am reading a lot on how to raise private money currently. I want to explore the possibilities of investing in real estate with the private money raised. Wish me luck on this one.
Content Creation
Writing
January has been the best month so far and it has created a belief that I can provide value. I am writing every day now with a focus on the reader irrespective of whether I publish it or not. I am also working on repurposing my content for social media and publishing on multiple platforms other than Medium and my blog such as Substack and also in some magazines such as MoneyCrashers.
Youtube
I realized that I don't have to create a lot of content but have to create quality content. If I write first, I can create a youtube video on the article. If I create a video first, I can write the article based on the video. Articles and videos act as backlinks to each other which is good from an SEO perspective.
Also, planning to do Daily market update videos for my subscribers Monday to Thursday. Also, planning to do DRIP-related videos.
Last year, I was posting the link to the articles and did not have much success. I went through a webinar and learned that I need to take the main points of my article and tweet them as a list to create an audience on Twitter. I tried and it worked. I also learned the power of positing at a particular time and retweets. I am super excited about implementing these strategies on the Twitter platform.
Blog
The goal is to generate massive traffic to TechieInvestor blog through content. We had created a new website design and our goal is to create more subscribers to our blog through educational content. Also, planning to increase revenue through affiliate links that we use for trading and investing.
Self Investment
This year, have a few goals that I want to attain. I understand I need to connect within to get the external results.
48 minutes of meditation per day
Read at least 12-15 books this year.
Develop patience and have the ability to understand others perspective
Make others feel good by guiding them to solve their challenges by asking appropriate questions
Focus on providing more value.
Takeaways
2021 was fabulous and has provided insights into what areas I could improve on for providing more value and in the process generate wealth and abundance. I know that I have set hefty goals for myself in 2022 and may not achieve all the goals. I am ok with not achieving the goal set as long as I have put in the effort required and have learned from the process involved.
I can't wait to hear about your investments for 2022. Do share. Let's collaborate, learn and grow together.
Happy Investing !!
Crypto and real estate are asset classes that can generate passive income apart from dividends. If you like this post, you might also like how to invest in crypto and how to invest in single family homes to generate passive income.
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