Simply put, the term "equity goose" comes from the parable of the "goose and the golden egg" used in financial circles as a metaphor for an asset or multiple assets that produce passive income. Ideally, an equity goose would be an investment property- since these provide monthly "cash flow" in the form of tenant rent checks (the "golden eggs").
However, there is additional criteria that should be understood when defining a true "equity goose." First of all a true equity goose is never drawn down. You should constantly be feeding your goose to foster its growth. For this reason "rainy day funds" and "just in case accounts" do not fit into this category- you create them with intent to withdraw. Any money you have in a checking account also doesn't fit the criteria because you usually use it to pay off bills. The most pure example of an equity goose is a money market account. It's a great place to save 10% of your income when "paying yourself first" because it's harder to withdrawal from. This account would preferably be at a different bank than your other accounts, making it as inaccessible as possible.
The second characteristic of an equity goose is that it cash flows. Under this requirement dividends from stock investments, passive income from rent property, and the interest on money market accounts all apply. Although it technically fits this criteria, stock market investments are not true equity geese. They tend to lose value due to the volatility of the stock market. Money market accounts are considered equity geese, because they cash flow about 2% and are relatively safe investments, as they are secured by the FDIC. However, real estate investing provides you the greatest amount of return with the least risk. Rental properties lay "golden eggs" every month in the form of cash flow from your tenants' rent.
The third and final characteristic of an equity goose is that it doesn't loose value. This is the primary reason why stocks don't fit the equity goose criteria- they depreciate. Real estate investing in Dallas, San Antonio, Houston or most Texan cities usually guarantee that you don't lose money on your investments. That's because these cities provide many opportunities for wholesaling- or buying property at extreme discounts resulting in instant unrealized equity when you purchase a home.
Check Out Equity Deals At Amazon
 |
Rethinking the Equity Risk Premium |
DescriptionIn 2001, a small group of academics and practitioners met to discuss the equity risk premium (ERP). Ten years later, in 2011, a similar discussion took place, with participants writing up their thoughts for this volume... |
 |
Equity: Why Employee Ownership Is Good For Business List Price: Sale Price: $14.41 |
DescriptionHow employee ownership can pay bottom-line benefits? Today, more than 25 percent of American workers own stock in their employers. You can shop at employee-owned supermarkets such as Publix, buy Gore-Tex fabric from employee-owned W... |
 |
From Zero to Sixty on Hedge Funds and Private Equity 2.0: What They Do, How They Do It, and Why They Do The Mysterious Things They Do List Price: |
DescriptionFrom this book, you will get two things regarding hedge funds and private equity. Two things that anybody can take home. The first is the knowledge - a foundation tool set of key words, industry phrases and financial concepts made clear in plain english... |
 |
Equity by La Crosse 33100 Electric Alarm Clock with Lighted Dial List Price: Sale Price: $9.93 |
DescriptionThe Equity 33100 features an ascending snooze alarm for those times when you need just a few more minutes of sleep. The lighted dial allows you to check the time after lights out. The alarm is easy to turn off via the top shut-off button. |
 |
Best Practices for Equity Research Analysts: Essentials for Buy-Side and Sell-Side Analysts List Price: Sale Price: $40.52 |
DescriptionA real-world guide to becoming a top-performing equity analyst Praise for Best Practices for Equity Research Analysts: "Jim Valentine has taken his decades of experience as a highly successful security analyst and written an effective and comprehensive guide to doing the job right... |
Incoming search terms:
- the equity goose (1)
Related posts: