I don’t really know much about those…I should take a look from a diversification standpoint. If you don’t mind me asking, what do you target for your net effective tax rate on your passive income? Also, I’m sure you’ve probably covered this somewhere, but how do you deal with healthcare? One more dumb question…have you found that you spend more or less money than you anticipated once you retired?
You can find dividend stocks using Google Finance Stock Screener which is free to use. Set the search criteria for the P/E Ratio, and Dividend yield (shown as a percentage) criteria. You can set minimum and maximum values; in the dividend yield box, set it between 2 and 100. This will search for stocks that pay dividends worth between 2-100% of the current stock price.

That income is considered residual income because as long as the apartment is rented and the rent is collected, the income is earned without additional effort. The effort came when the property was purchased and a tenant was found. Each month after that, the money automatically is paid without buying the apartment again or finding the same tenant each month.


However, residual income typically has an expiration date, especially if it is being earned through a business. Effort must be continuously put into the business in order for someone to continue to receive residual income. Businesses must continue to market themselves in order to remain relevant. The best way to look at residual income in this sense is that it is a part-time job that earns full-time income.

We are going to start with 1.5 years of all spending needs in cash. We will draw 1800 to 1900 per month. We will add to this from the index funds by taking a portion of the gains in good years to supplement. This is the total return portion of the equation. Obviously, if stocks decrease drastically over a 5 year period, then I would have to reload by selling some of the ETF holdings.


​Self Publishing is mainstream today. When you purchase an eBook off of Amazon there’s a pretty good chance you’re buying a self-published book. Self-publishing is also ridiculously easy. I tried this a few years ago and couldn’t believe how simple the process was. To self-publish a book you’ll first need to write and edit it, create a cover, and then upload to a program such as Amazon’s Kindle Direct Publishing. Don’t expect instant success though. There will need to be a lot of upfront marketing before you can turn this into a passive income stream.
I prefer assets that make me a high return for the lowest amount of work possible (semi-passive involvement). And assets that pay me in several unique ways. Cash flow is only one way RE makes money for me. I also get principal reductions, appreciation, tax advantages (depreciation), and I control the rental increases on a yearly basis. Plus a majority of the capital is provided by the secondary market on 30 year fixed low interest rate debt.
However, you should pick a niche and blog about that. If you're launching a money related blog, maybe it'll be about how to make money in real estate or simply how to make money online. Pick the niche and stick to it. If it's a diet and fitness related blog, maybe the niche is the Ketogenic diet, the Atkins diet or some other form of diet or fitness.
The vast majority of people imagine working a forty hour week, and then earning a pay check for the job they have done. That is, in fact, how most people support themselves year after year. But did you know that it is possible to continue earning income even after you stop working. Creating a stream of residual income might be something you want to take a look into and get some more information on. 
That is a nice list of passive income sources. Actually, the most up-to-date list of dividend growth stocks is the list of dividend champions, maintained by Dave Fish. The list of dividend aristocrats is incomplete at best. For example, the dividend champions list has over 100 companies that have managed to increase dividends each year for at least 25 years in a row. The list of dividend aristocrats has no more than 50 – 60.

I have not. While I am intrigued with the possibility of making online income, it seems to be less passive then how I want to spend my time. Regarding your blog / site, you have done quite well for yourself. However, you have to keep pumping out content or your site would eventually go out of business. That sounds like more of a commitment then I would want. Regarding your book sales, it is probably relatively passive now, but certainly was not when you were writing the book. Now if you love it, great. Just not for me.
Who cares, especially when very conservatively, the ultimate passive income includes a six digit or more base lease, plus an estimated additional six digits or more for rate increases and another six digits for more for various smaller and one bigger technology increase at 25 years. All four (base, rate, smaller and mega technology increases) combined, certainly could yield much more depending upon inflation, rate increases and technology increases?
I really enjoyed how you listed all of the reasons to build passive income streams as well as the framework. You also made an interesting point about freelance writing on how the more skilled writers want to keep posts for their own website. Good insight because freelance writing is something I’ve been looking into for income recently. Also, it’s amazing what you’ve been able to accomplish with your blog over the past 6 years. It’s so motivational to see the success of Financial Samurai. I’m not in a place to afford any consulting, but, I wish I could pick your brain or get mentored by a successful blogger such as yourself…Not trying to blow smoke lol. It would just be so great to have someone who’s done it provide guidance around the direction of the blog, ways to earn, and on the general concept. Always enjoy your posts. Thanks for sharing :)

So, if the goal is to have residual income when we retire, which seems based on Social Security rules to only be possible in our 60’s, and the government has mandated penalties before taking our money before 59.5, wouldn’t it be prudent to start investing in sources of residual income now that maybe don’t have an age limit into our 60’s? What guarantee do we have that we will make it that long?


Teachable and Udemy are two of many, but these are the most prevalent, and they’re both intuitive and user-friendly. With Teachable, you have more control over your pricing and the look and feel of your course, but you don’t get a built-in audience. Instead you have to do all the marketing yourself. Udemy has a built-in base of students, but you don’t have as much control and they take more of your revenue.
Nah you misunderstood me. I’m working 50 hours a week now to get residency and only taking a couple of classes. I’ll be working 10-20 hours a week when I go back to schoool full time a year from now. I tried working 35 hours and school full time but got burned out last year so no more of that. My grades are so-so. I got a 3.7gpa in all my GE’s and really on a conservative basis planning to remain around there which would mean 1 B for every 2 A’s. To get residency realistically I got to earn 300 dollars in taxable income a week for a year, and in the meantime am allowed to go to school part time given the fact that I can pay for school with the money I have earned within the period I began to establish residency, so no outside cash because my bank accounts will be audited at the end of the year.
Several people are receiving one of these 26AS statement email message from IT department and they are panicking. The sender of these email is”DONOTREPLY@incometaxindiaefiling.gov.in” with the subject line saying – File your IT Return to report your income. Few people have also received SMS from DZITDEFL or VKITDEFL on the same topic. We will cover the […]
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Diversify safely but DIVERSITY. You do not need to get the best and highest return all the time. If so, you are not earning passive income you are earning active income which is taxed differently (see IRS.GOV passive -vs- active income definitions). As an investor you do not need to be chasing ‘the almighty dollar’. This is a losing proposition. Make the dollar come to you.
Generating passive income requires upfront work. Some say achieving passive income is actually quite an active pursuit. Some paths may be. But then they may not be truly passive income investments. Acquiring a passive income producing investment can be very simple, even if there are many others behind the scenes doing a lot of work to vet, package, and manage that investment.
P2P lending is the practice of loaning money to borrowers who typically don’t qualify for traditional loans. As the lender you have the ability to choose the borrowers and are able to spread your investment amount out to mitigate your risk. The most popular peer to peer lending platform is Lending Club. You can read our full lending club review here: Lending Club Review.
One of the things I'm surprised your article doesn't mention is the tax advantages of this type of investment. The depreciation and rehab costs (purchasing distressed properties) can be huge deductions to ones income taxes, which none of the others have. Then, along with the appreciation of real estate, this passive income investment outperforms the notion of maxing out my 401k as well.
Those who choose to focus on passive income will need either family money, funds from investors, or the nerve to borrow large sums by taking on debt to fund the purchase of assets. Consider someone who takes out substantial bank loans to build an apartment building or buy rental houses. Although this can turn a very small amount of equity into a large cash flow stream, it is not without risk. When using borrowed money, the margin of safety is much smaller because you can’t absorb the same degree of setback before defaulting and finding your balance sheet obliterated.

Many people associate work with punching the clock, the 9-to-5 slog and saving for retirement. The trouble is, an hourly rate alone will never make you wealthy and drains your most precious resource: time. Fortunately, you have alternative strategies. Unfortunately, you’ve probably never heard about them, as they’re usually reserved for the super-rich.
My favorite type of semi-passive income was rental property because it was a tangible asset that provided reliable income. As I grew older, my interest in rental property waned because I no longer had the patience and time to deal with maintenance issues and tenants. Online real estate became more attractive, along with tax-free municipal-bond income once rates started to rise.

I am always seeking to help women who are interested in working from home to generate a potential six figure income without sacrificing time with their kids, their professionalism or integrity. Motives is an industry recognized brand and in good standing with the Better Business Bureau. Read here for the Motives Cosmetics Beauty Advisor Job Description.

To explain the concept of what is residual income, we look to a recording artist Joseph Cartagena, aka Fat Joe, to define this principles of wealth creation. You may have had dreams of becoming an entertainer or rock star as a child in hopes of creating residual income before you even heard of the term itself. However, as Fat Joe explains, there is another way to create true residual income. This one and a half minute video will reveal a powerful example of what residual income really is.
I have two major dilemmas: (1) Should I wait to start investing (at least until the end of the year where I’ll hopefully have $5k+ in savings) in things like CDs? I ask because a little over $2k doesn’t seem significant enough yet to start putting my money to work (or maybe it is? that’s why I’m coming to you for your advice haha) and (2) I want to invest in things like P2P and stocks but I’m honestly a bit ignorant of how it trully works. I know the basics (high risk, returns can be volatile, returns are taxable). Do you have any advice on how I can best educate myself to start putting my savings to work?
I just can’t seem to get my head around creating my own online product. When you talk about it, you make it sound like its mostly just about putting in the time and plugging away at it. Problem is I can never seem to come up with any ideas for a site or product that seem remotely unique or compelling or that I have any special knowledge about. The stuff I do know about is pretty commodity type knowledge that can mostly be found on thousands of sites on the internet already. Any tips on discovering what your “unique angle” is? I mean, you have a pretty compelling and somewhat unique personal story of working on wall street and then walking away at a young age.
1) If your property is not under rent control, you have the ability to raise rent to market prices with proper warning. In SF, I have to give tenants a one month warning for up to a 10% increase and a two month warning for up to 60%. Rent control limits to an inflation index, usually around 2% a year, which is why initial pricing and tenant turnover is important for better profitability.
However, you should pick a niche and blog about that. If you're launching a money related blog, maybe it'll be about how to make money in real estate or simply how to make money online. Pick the niche and stick to it. If it's a diet and fitness related blog, maybe the niche is the Ketogenic diet, the Atkins diet or some other form of diet or fitness.
Which all goes back to my point – since companies change in a lot of unpredictable ways, it makes more sense for passive income to just ride the market by investing in a Total Domestic Stock Market, Total Bond Market, and Total International index funds, with allocations that depend on your goals and time horizon. For income, withdraw 4% or less, depending on what research you believe, and you’ve got a pretty low risk strategy.
I've now only got an SF rental condo and a Lake Tahoe vacation rental in my real-estate-rental portfolio. Although I miss my old house, I certainly don't miss paying $23,000 a year in property taxes and another mortgage, and dealing with leaks and managing terrible tenants. I drove by the other day and couldn't believe how much noisier and busier the street was than where I currently live. I wouldn't be comfortable raising my son there.
1. The batting cage idea is very risky. I’ve seen many of them close over the years and it is not anything close to passive income if you want to keep the business going. You have to continually promote it and target youth leagues, coaches, schools etc to catch all of the new players who grow up and want to play. I’ve played at probably 8 batting cages over the years and 7 of them closed.

Your articles are so in-depth and helpful, I’ve never seen anything quite like it. I am a 22-yr old finishing my last semester of college, studying Computer Science and Psychology. I’m in a really good place with my finances (2k savings, no student debt, only expenses essentially rent, groceries, and utilities) and I want to get ahead financially so I can pay my parents back and save up a lot.
Well written piece, but I question the core premise. Why the fascination with maximizing “income” (passive or otherwise). Shouldn’t the goal simply be to maximize long-term after tax growth of your entire portfolio? If this takes the form of dividend paying stocks, so be it. But what if small caps are poised to outperform? What if you want to take Buffet’s or Bogle’s advice and just buy a broad market index like the S&P 500, (no matter what the dividend because you’ll just have it automatically reinvested to avoid the transaction fees).

I had to get out. I actually had this random Facebook ad come up in my news feed (go figure) and it eventually led me to a webinar that taught on how to start an email marketing business (which is, by the way, the most profitable form of affiliate marketing – or ANY marketing for that matter). I listened through the whole 2 hours, completely mesmerized. By the end of it, I knew what I was going to be focusing on to help my family out of the pit of debt we were in and into a world free of financial stress. I didn’t know if it would actually work, but eventually it lead to EXCESS income!
Business success doesn't mean sacrificing your finances or taking risks with your bank balance. You'll become independent marketing these devices, helping others as you help yourself. Why should you continue to settle for less than you're worthwhile ingesting impure water? You'll find the best of both worlds here. Give me a call for the health and wealth opportunity of a lifetime! I'm happy to introduce you to the system which will set you on the pathway to independence.
Personal finance software can go a long way in helping you to take control of your money and meeting your financial goals. It’s important to note, however, that some focus more on budgeting and expense tracking while others prioritize investing portfolios and income taxes. Explore several different programs and read reviews to find the one that’s right for you.
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