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What Is Perpetual Cash?

Malcolm Tatum
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Updated: May 17, 2024
Views: 5,888
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Perpetual cash is a term that is often utilized with financial strategies designed to create an ongoing flow of revenue. Some of these approaches involve acquiring certain various types of securities and holding them over the long term, in order enjoy a steady flow of dividends. Other methods involve the creation of various types of financial schemes designed to constantly generate cash flow based on the pyramid and other approaches that are considered questionable in terms of ethics and sometimes legalities. With any methodology, the goal is to create a platform that continues to generate returns year after year.

There are a number of investment options that can be used to generate a flow of perpetual cash. One of the more common has to do with the acquisition of what is known as a perpetual bond issue. With this investment approach, the investor buys a bond that is not redeemable, meaning that there is no maturity date associated with the bond and the principal invested is never returned to the buyer. Instead, the investor receives regular interest payments according to a schedule provided as part of the terms and conditions. Unless the investor chooses to sell the bond at some point, he or she will receive interest payments for life, assuming the issuer of the bond remains financially solvent.

Along with a non-redeemable bond issue, there are also certain stock issues that can also provide a flow of perpetual cash. With these types of shares, the investor receives a steady flow of dividend payments over the years. While the issuer will not call or buy back the shares, the investor is always free to sell the stock to another party, relinquishing all claims on any future dividend payments.

The concept of perpetual cash is also associated with different types of financial schemes involving the creation of a network of affiliates that is based on the sale of a select set of goods and services and the constant entry of new individuals into the network. With this approach, new recruits who sign up under the auspices of a sponsor receive commissions for their sales, while the sponsor also receives some sort of commission from the activity of the recruits in his or her network. Many of these types of perpetual cash operations are perfectly legal and legitimate, offering products of reasonable quality to consumers. Others skirt very close to the limits of the law and may offer products or claims of wealth that are dubious at best. When considering any type of scheme offering perpetual cash, it is important to research the program in detail before choosing to make what could be a costly commitment.

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Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.

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Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
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