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Investment Vehicles Part 2: Daily Driver

 March 16, 2012 01:29 PM


The daily driver is the most robust of the investment vehicles.

Typically this vehicle is extremely boring and not an attractive choice to most novice traders. Even though this vehicle is not the most exciting or fun way of investing, it is the type of vehicle that will create the passive income.

Passive meaning it will create income that you will not have to actively work for, therefore it can be used in the pursuit of other ventures including the building of a race car.

What are the Types of Daily Drivers?

Below are some examples of some of the financial tools that are considered daily drivers and their corresponding vehicle:

  • Savings Account (A Big Wheel)
  • Money Market Account (A bicycle)
  • Certificate of Deposit or CD (A mountain bike)
  • Mutual Funds (Public Bus)
  • Stocks (Sedan)

[Related -Buffett's Market Indicator Flashes Red, Prepare To Sell]

The daily drivers are designed to make you a living if something were to happen to your earned income. They require significantly less maintenance than a race car, and are much more reliable. A daily driver is not designed to make you a fortune; they are designed to free up resources to allow the building of a race car.

[Related -PBoC joins other major central banks with unconventional monetary policy action]

If you missed the first part in this investment vehicle series please take the time to read this awesome article. If you already did that, then just continue on partner!

Choose Something Reliable and Proven to Perform

The daily driver we are going to discuss is the sedan. This is a basic car, it has 4 wheels, an engine, a body, but not much else. It is not designed to make you 500% next week; instead it will produce a small percentage of income with very minimal effort.

This type of income is crucial if building a race car is one of your goals in investing. Start small and work your way up.

What About Options?

Many people have asked me about options. What type of vehicle would an option, spread, condor and various other option combinations fall under.


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