What is the difference between Cash Flow and capital gain?
Ignorance of the term causes that we prepare ourselves for a regular income. I very like the definition that is used Mr. Kyiosaki in his books. When this difference explains to young people, uses very appropriately the following fables about Goose, who lay the golden eggs:
A person who invests in Cash Flow feeds the goose, and sells its golden eggs.
A person who is investing for profit on capital, as if the Goose has sold.
The irony is that from the golden eggs that you sell, you usually pay much smaller of taxes, than from the sale of the geese.
And because the largest part of "financial experts" are mainly traders and not the real investors then selling the goose, not eggs.
Ignorance of the difference between the concepts of money cash flow and the capital gain causes that many people to believe in selling of geese.
Need you some further explanation? I think not. In other words, if you have a such a Goose (for example. rent an apartment or House after your parents, etc.), nurture it, sell its golden eggs (rental, weekend stays, etc..) and enjoy your sustained cash flow. Do not sell Goose.
Do not sell the goose and you have the option to obtain the "endless income".