5 Low-Risk Investment Strategies for Authors & Creators to Grow Passive Income

By Warren H. Lau, Chief Editor at INPress International and veteran investment expert with 10+ years of global market experience

As a private investor who spent over a decade navigating volatile global markets—including growing my personal portfolio by 600% during the 2008 Subprime Crisis and 320% through the 2015 Chinese market crash—I’ve worked with dozens of freelance authors, poets, and creative entrepreneurs. The biggest challenge I’ve seen? Creators often have irregular income streams but want to grow wealth without the risk of day trading or the jargon of Wall Street.

Passive income isn’t about "get-rich-quick" schemes—it’s about building sustainable growth that aligns with the flexibility of creative work. Below are 5 low-risk strategies tailored for creators: strategies I’ve refined over years of personal investing and teaching fellow artists how to grow their side income.

1. Dividend ETFs – Steady Returns with Minimal Effort

Dividend Exchange-Traded Funds (ETFs) are ideal for creators who don’t have time to research individual stocks. These funds pool money into dividend-paying companies (think blue-chip brands like Coca-Cola or Johnson & Johnson) and pay out regular dividends—usually quarterly.

For creators, the appeal is twofold: low volatility (ETFs spread risk across dozens of companies) and passive cash flow. I recommend starting with broad-market dividend ETFs like the Vanguard Dividend Appreciation ETF (VIG) or the Schwab U.S. Dividend Equity ETF (SCHD)—both have a track record of 6–8% annual returns (dividends + growth) and require a minimum investment of just $500.

Creator Tip: Reinvest dividends back into the ETF until you need the cash—this compounds growth over time. I’ve had freelance authors double their initial $1,000 investment in 8 years using this strategy, with zero active management.

2. High-Yield Savings Accounts (HYSA) – Safe Storage for Irregular Income

Creators often have lumpy cash flow (e.g., book advance payments, freelance project fees) that sits idle between gigs. A High-Yield Savings Account (HYSA) is the safest way to earn interest on that cash without risking principal.

Today’s top HYSAs offer 4–5% annual percentage yields (APY)—far higher than traditional savings accounts—with no fees or minimum balance requirements. I recommend Ally Bank or Capital One 360: both are FDIC-insured (up to $250,000) and let you transfer funds instantly when you need to cover creative projects or personal expenses.

Creator Tip: Use a HYSA as a "cash buffer" for 3–6 months of expenses, then invest any surplus in ETFs or bonds. This balances safety and growth—critical for creators who can’t afford to lose emergency funds.

3. Peer-to-Peer (P2P) Lending – Moderate Returns with Diversification

P2P lending platforms like LendingClub or Prosper let you lend money to individuals or small businesses in exchange for regular interest payments (7–10% annual returns). For creators, P2P lending is a way to diversify beyond stocks and savings—without the complexity of real estate or crypto.

The key to low risk? Diversify your loans across 50–100 borrowers (most platforms let you invest as little as $25 per loan). I’ve used this strategy to earn consistent returns while keeping my risk exposure low—even during market downturns.

Creator Tip: Stick to borrowers with a credit score of 680+ and loan purposes tied to small business or debt consolidation (lower default rates). Avoid risky loans for luxury purchases.

4. Index Funds – Long-Term Growth for Creative Careers

Index funds track a broad market index (e.g., the S&P 500) and offer exposure to hundreds of companies with a single investment. They’re perfect for creators who want to "set it and forget it"—no active trading required.

Over the past 30 years, the S&P 500 has averaged 10–12% annual returns (adjusted for inflation). For creators with a long-term horizon (5+ years), index funds like the S&P 500 ETF (VOO) or Fidelity ZERO Large Cap Index (FNILX) are a reliable way to grow wealth.

Creator Tip: Invest a fixed amount monthly (e.g., $200) via dollar-cost averaging—this reduces the impact of market volatility. I’ve guided a freelance graphic designer to grow a $500 monthly investment into $100,000 over 10 years using this method.

5. Bonds – Stable Income for Risk-Averse Creators

Bonds are loans to governments or corporations that pay fixed interest rates (3–5% for U.S. Treasuries or investment-grade corporate bonds). They’re the lowest-risk investment on this list—ideal for creators who want to protect their capital while earning steady income.

I recommend Treasury bonds (backed by the U.S. government) or municipal bonds (tax-free for state residents) for maximum safety. For added diversification, use a bond ETF like the Vanguard Total Bond Market ETF (BND)—it holds thousands of bonds and pays monthly dividends.

Creator Tip: Ladder your bonds (invest in bonds with different maturity dates) to ensure regular cash flow. This way, you’ll have funds available every 1–3 years if you need to fund a creative project or cover expenses.

Warren H. Lau spent over a decade in professional investment, growing portfolios by 600% during the 2008 Subprime Crisis and 320% through the 2015 Chinese market crash using a fusion of technical, fundamental, and news analysis. He is now Chief Editor at INPress International, where he curates finance and business titles for creators and entrepreneurs, and CEO of a tech firm focused on web development and digital marketing.

[Learn more about Warren’s investment work at INPress International]

About the Contributor

Disclaimer: Warren H. Lau is Chief Editor of INPress International, era-zine’s sister book publisher. This article is editorial content and does not promote any INPress products. All investment strategies carry risk—past performance is not indicative of future results. Consult a financial advisor before making investment decisions.