Vince Vaughn made a name for himself in Hollywood by starring in some of the biggest comedies of the 2000s. But instead of squandering his success, Vaughn took a different path: protecting his earnings through smart investments.
“I was fortunate to make money at my profession, and I didn't want to lose it,” he explained in an interview with business coach JT Foxx.
Unlike many of his colleagues, Vaughn took an active interest in managing his finances, noting, “There were so many actors I knew who were intimidated and didn't deal with it.”
Vaughn took the initiative, making his first major investment in gold.
“So I thought, I want tangible assets. First, I bought some gold, but there's no passive income off of it,” he recalled.
Gold is indeed a tangible asset — and a well-known hedge against inflation. The reason is simple: unlike fiat currencies, the precious metal can’t be printed in unlimited quantities by central banks.
However, as Vaughn discovered, gold doesn’t generate income on its own.
To create that steady income stream he was after, Vaughn turned to real estate.
“So I just started to buy some small buildings that I could rent out,” he said. “And I knew that the buildings would go up in price [and] I'd have some money coming in passively from it.”
Earn passive income from real estate
By purchasing small rental buildings, Vaughn tapped into two powerful advantages of real estate: passive income and the potential for appreciation.
As tenants pay rent, he collects income that doesn’t require daily work. Plus, because property values and rental income tend to rise alongside the cost of living, real estate serves as a reliable hedge against inflation.
After his initial foray into real estate, Vaughn expanded his portfolio. He began “buying a bunch of farms” and acquired properties in Florida, targeting “areas that were getting nicer.”
Looking back, Vaughn emphasizes the importance of continuously building knowledge and learning from each investment. “I think the more you spend time on it and get a feeling for what you think is doing well, you get better each year,” he remarked.
Vaughn’s strategic investments have served him well. His net worth is now estimated at $75 million, according to Yahoo.
The good news? You don’t need Hollywood funds to start building wealth through real estate. Platforms like Arrived, backed by prominent investors like Jeff Bezos, make it easy for everyday investors to buy shares in rental properties without a hefty down payment or the hassle of managing tenants.
To get started, you can browse through a curated selection of homes, vetted for their income and appreciation potential, and choose the number of shares you want to buy.
For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.
With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
For accredited investors looking for new opportunities, another option is First National Realty Partners (FNRP), which targets necessity-based commercial real estate.
The platform lets accredited investors [own a share of institutional-quality properties] leased by national brands like Whole Foods, CVS, Kroger and Walmart. Investors have the opportunity to collect stable, grocery store-anchored income every quarter.
As a private equity firm, FNRP acts as the deal leader and offers white-glove service to investors, providing expertise and doing the deal legwork. While the FNRP team takes care of sourcing new deals, you can engage with experts, explore available deals and easily make an allocation, all on FNRP’s secure platform.
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Gold revisited
While gold doesn’t offer the passive income Vaughn was after, it remains a popular choice for investors as a hedge against economic uncertainty and inflation.
In 2024, gold prices surged by 33%, surpassing $2,700 per ounce. Investors often turn to precious metals like gold and silver during periods of market volatility or global instability, as their value isn’t tied to any particular currency or economy.
Gold is frequently considered a "safe-haven" asset because it tends to perform well when other investments, like stocks, face downturns, offering a form of insurance in an investor’s portfolio.
Economist Peter Schiff sees substantial further upside for gold. “If gold can go from $20 an ounce to $2,600 an ounce, it can go from $2,600 to $26,000, or even to $100,000. There’s no limit because, again, gold isn’t changing — it’s the value of the dollar that’s decreasing,” he stated.
For those looking to capitalize on gold’s potential while also securing tax advantages, one option is opening a gold IRA with the help of Thor Metals.
Gold IRAs allow you to invest in gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those seeking to ensure their retirement funds are well-shielded against economic uncertainties.
When you make a qualifying purchase with Thor Metals, you can receive up to $20,000 in precious metals for free.
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Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.
