Self sustaining businesses
Rental Real estate (can be residential or commercial)
Loans and or bonds
Equity investments such as stocks
All of them require you to rely on a manager who will expect to be paid, and if you don’t keep an eye on the manager you’re liable to get ripped off, so nothing is truly 100% passive.
Low risk mutual funds, GIC’s and venture capital investment. However, none of these are passive. You first have to make money before you make more money, and then you have to know the market before you make a smart investment.
there is no such thing as a passive income generator, you msut put in hard work for peanuts before you can sit back and enjoy the fruits of your labor.
Real or Commercial estate is historically one of the favorites of passive income generators, but it has a few drawbacks, being the high costs involved in actually obtaining some estate in the first place.
If you have a solid job, you could take out a bank loan and put a down payment on that piece of real estate. The next thing to do would be to rent it out and use the rental to cover the monthly repayments to the bank. In essence, you own the real estate just by paying the down payment which is typically 10%.
The risks are: not being able to find to find someone to live in it, losing your job suddenly and not being able to pay for the loan repayment, etc.
I personally dislike low cost funds which typically do the same things that we can do ourselves with a little effort and discipline. The disadvantages of most funds is the inflexibility of getting your money back as most funds require that you are not able to withdraw investments for about a year, depending. If you learn how they invest, which is not difficult for low-risk ones, you can do it yourself and save on the administration costs.
You can either have a job or run a business, there’s no middle ground if you want a successful business. Unless you work at it for years, it probably won’t become a passive income source anytime soon. A good bet would be to pick up a popular franchise, for which you can also get bank loans for, which would cut the years of labor back.
Fixed Deposits take too long to mature in my opinion, but they are a good hedge against negative market fluctuations. There are some FDs that will pay a bonus interest on top of the regular interest, go take a look at your local banks.
My favorite source of passive income would be Index ETFs, like the S&P 500 or the Dow Jones. I feel they provide a nice balance between capital growth and cash flow. If the index performs well, i can sell to make a profit, and if it doesn’t, i’ll keep it and let it pay dividends. Best case scenario, the index performs well and the dividends are bountiful =)
Comments
Self sustaining businesses
Rental Real estate (can be residential or commercial)
Loans and or bonds
Equity investments such as stocks
All of them require you to rely on a manager who will expect to be paid, and if you don’t keep an eye on the manager you’re liable to get ripped off, so nothing is truly 100% passive.
Low risk mutual funds, GIC’s and venture capital investment. However, none of these are passive. You first have to make money before you make more money, and then you have to know the market before you make a smart investment.
there is no such thing as a passive income generator, you msut put in hard work for peanuts before you can sit back and enjoy the fruits of your labor.
Real or Commercial estate is historically one of the favorites of passive income generators, but it has a few drawbacks, being the high costs involved in actually obtaining some estate in the first place.
If you have a solid job, you could take out a bank loan and put a down payment on that piece of real estate. The next thing to do would be to rent it out and use the rental to cover the monthly repayments to the bank. In essence, you own the real estate just by paying the down payment which is typically 10%.
The risks are: not being able to find to find someone to live in it, losing your job suddenly and not being able to pay for the loan repayment, etc.
I personally dislike low cost funds which typically do the same things that we can do ourselves with a little effort and discipline. The disadvantages of most funds is the inflexibility of getting your money back as most funds require that you are not able to withdraw investments for about a year, depending. If you learn how they invest, which is not difficult for low-risk ones, you can do it yourself and save on the administration costs.
You can either have a job or run a business, there’s no middle ground if you want a successful business. Unless you work at it for years, it probably won’t become a passive income source anytime soon. A good bet would be to pick up a popular franchise, for which you can also get bank loans for, which would cut the years of labor back.
Fixed Deposits take too long to mature in my opinion, but they are a good hedge against negative market fluctuations. There are some FDs that will pay a bonus interest on top of the regular interest, go take a look at your local banks.
My favorite source of passive income would be Index ETFs, like the S&P 500 or the Dow Jones. I feel they provide a nice balance between capital growth and cash flow. If the index performs well, i can sell to make a profit, and if it doesn’t, i’ll keep it and let it pay dividends. Best case scenario, the index performs well and the dividends are bountiful =)
check out http://www.indexarb.com/dividendAnalysis.html
thanks for reading and please rate!
rental properties, bonds, royalties