505: Andy Tanner on Cash Flowing Stocks for Double Digit Returns
May 4, 2025
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Join Andy Tanner, a globally recognized educator and founder of Cashflow Academy, as he shares his evolved views on stock market investments. After years of favoring real estate, Tanner discusses treating stocks like cash-flowing assets. He shares insights on strategies such as selling covered puts, aiming for annualized returns of 25%. The conversation emphasizes the importance of liquidity, personal development, and financial education, encouraging listeners to find innovative ways to boost their cash flow.
The perception of stocks has shifted from negative to positive, recognizing their value as cash-flowing assets akin to real estate.
Active investment strategies like selling covered puts allow for immediate income generation while acquiring stocks at advantageous prices.
A clear financial blueprint is essential for successful investing, enabling informed decisions across multiple asset classes to achieve wealth-building goals.
Deep dives
The Shift in Perception of Stocks
There has been a notable change in the perception of stocks over the years, shifting from a solely negative view to a more balanced approach. The speaker acknowledges that while wealth creation should encompass more than just stocks, bonds, and mutual funds, there is now recognized value in stocks, especially when approached differently. This shift emphasizes utilizing stocks as cash-flowing assets, akin to real estate investments, rather than just focusing on market fluctuations. The idea is to integrate stocks into a broader investment strategy that includes various asset classes for a well-rounded wealth-building approach.
Active Strategies for Stock Investing
Incorporating strategies like selling covered puts and trading options represents a more active form of investing in stocks. This method enables investors to generate immediate income through premiums while potentially acquiring stocks at favorable prices. The speaker shares personal experiences with trading volatile stocks like MicroStrategy and Tesla, expressing optimism about the potential of using options for consistent payouts. This active management of stock portfolios can produce returns that go beyond traditional passive investment strategies.
The Importance of a Financial Blueprint
A successful investment strategy, whether in stocks or any other asset class, requires a well-defined financial blueprint. This blueprint should clarify personal goals, desired lifestyles, and the financial resources needed to achieve those goals, thereby transforming dreams into actionable projects. The speaker emphasizes that whether one chooses real estate, stocks, or businesses, all can contribute to a comprehensive strategy for building wealth. As a foundational step, having a clear understanding of one's desired destination allows investors to make informed decisions about how to navigate their financial journey.
Cash Flow: The Focus of Investment
Investing should prioritize generating cash flow rather than simply aiming for price appreciation. The speaker highlights that a cash flow approach to investing in stocks requires examining essential metrics like dividends and operational income, similar to evaluating real estate investments. By focusing on the cash flow characteristics of a stock, investors can develop strategies that yield returns even in uncertain market conditions. This perspective aligns with a business-owner mentality, empowering investors to treat stock investments like they would traditional cash-flowing assets.
Options Market Insights and Strategies
The options market offers a compelling opportunity for income generation through strategies like income stacking. These strategies allow investors to receive additional income beyond dividends by selling options and making calculated promises on stock trades. With proper education and understanding of the risks involved, options trading can enhance overall returns and mitigate potential losses. The discussion encourages new investors to embrace options as a way of engaging with stocks actively, turning investment into a more dynamic and rewarding process.
I used to scoff at Wall Street, believing the stock market was the last place to build real, life-changing wealth. I leaned exclusively on real estate, private businesses—even Bitcoin—to grow my net worth.
But times change. I’ve softened my stance on equities and now see a place for stocks in my portfolio—just not the way most people do. I think of them as cash-flowing assets, much like real estate, following the approach of Andy Tanner, Robert Kiyosaki’s “Rich Dad” stock advisor.
Over the past two weeks, I decided to put Andy’s strategy to the test by selling covered puts on companies I wouldn’t mind owning. In that short span, I’ve already pocketed a 4% return. Sure, it could be beginner’s luck—or it might be the rich option premiums on names like Tesla and MicroStrategy—but I’m off to a promising start.
Can I realistically expect 80–100% annualized returns? Probably not, especially once I’m assigned and actually own some of these shares. But those who follow Andy’s more conservative, textbook version of the strategy often cite annualized returns of 25%—and that’s what I’m aiming to learn.
So I’m enrolling in his next Cash Flow Academy course to master the details. The takeaway? Even an old dog like me can learn new tricks, so long as he keeps an open mind.
Don’t worry—I’m still a real estate guy at heart. But I appreciate having some liquid, income-producing positions, and this feels like a smart way to do it. If you’ve got a retirement account that could use a boost, you might find this approach especially appealing.
To hear why I’ve done a complete 180 on stocks, tune into this week’s episode of the Wealth Formula Podcast, where I sit down with the cash-flowing-stocks guru himself, Andy Tanner.
