Comments on: Passive vs Active Income: Are You Working For the Wrong Income? http://www.savingadvice.com/blog/2008/08/31/102272_passive-active-income.html Bridging the gap between saving money and investing Sun, 08 Nov 2009 14:47:49 -0800 http://wordpress.org/?v=2.8 hourly 1 By: Alan http://www.savingadvice.com/blog/2008/08/31/102272_passive-active-income.html/comment-page-1#comment-418024 Alan Wed, 03 Sep 2008 12:10:08 +0000 http://www.savingadvice.com/blog/2008/09/26/102272_are-you-working-for-the-wrong-income.html#comment-418024 Another means is through residual income, where your income either remains the same or increases when you stop working (active income) and retire (start withrdrawing income). This is something I am working on now and helping others. Another means is through residual income, where your income either remains the same or increases when you stop working (active income) and retire (start withrdrawing income). This is something I am working on now and helping others.

]]> By: A Marino http://www.savingadvice.com/blog/2008/08/31/102272_passive-active-income.html/comment-page-1#comment-417088 A Marino Tue, 02 Sep 2008 16:38:52 +0000 http://www.savingadvice.com/blog/2008/09/26/102272_are-you-working-for-the-wrong-income.html#comment-417088 Scanner: When you have net income from rental property, you pay withholding not social security or medicare. You pay social sec and medicare when you are actively running the property as your main job. My accountant might disagree with you about that. You don't pay social security on interest on your CD's, savings, etc. Scanner: When you have net income from rental property, you pay withholding not social security or medicare. You pay social sec and medicare when you are actively running the property as your main job. My accountant might disagree with you about that.

You don’t pay social security on interest on your CD’s, savings, etc.

]]> By: xinecho http://www.savingadvice.com/blog/2008/08/31/102272_passive-active-income.html/comment-page-1#comment-415235 xinecho Mon, 01 Sep 2008 07:57:47 +0000 http://www.savingadvice.com/blog/2008/09/26/102272_are-you-working-for-the-wrong-income.html#comment-415235 Oh, I wonder when can I attain a passive income. I am looking forward to it. Oh, I wonder when can I attain a passive income. I am looking forward to it.

]]> By: Roundup and Link Love - Labor Day 2008 Edition | The Wisdom Journal http://www.savingadvice.com/blog/2008/08/31/102272_passive-active-income.html/comment-page-1#comment-415019 Roundup and Link Love - Labor Day 2008 Edition | The Wisdom Journal Mon, 01 Sep 2008 05:02:21 +0000 http://www.savingadvice.com/blog/2008/09/26/102272_are-you-working-for-the-wrong-income.html#comment-415019 [...] Top 5 bargain places to buy a vacation home @ Smart Money Tossing your to do list @ Small Notebook Passive vs Active Income: Are you working for the wrong income? @ Saving Advice How to pay for college when you’re on your own @ That One Caveman 3 reasons [...] [...] Top 5 bargain places to buy a vacation home @ Smart Money Tossing your to do list @ Small Notebook Passive vs Active Income: Are you working for the wrong income? @ Saving Advice How to pay for college when you’re on your own @ That One Caveman 3 reasons [...]

]]> By: Broke In America http://www.savingadvice.com/blog/2008/08/31/102272_passive-active-income.html/comment-page-1#comment-414740 Broke In America Sun, 31 Aug 2008 23:27:17 +0000 http://www.savingadvice.com/blog/2008/09/26/102272_are-you-working-for-the-wrong-income.html#comment-414740 "If you’re a technophile who’s got some programming skill and an idea for a killer app, then software can easily become a passive income stream." -- This is an incorrect. Technology is constantly evolving. A techie has to keep upgrading his/her skill set. Same goes for any "killer app". Even in the blogosphere, one has to be on the cutting edge, or be left behind. It is not what I would call a passive income. “If you’re a technophile who’s got some programming skill and an idea for a killer app, then software can easily become a passive income stream.”

– This is an incorrect. Technology is constantly evolving. A techie has to keep upgrading his/her skill set. Same goes for any “killer app”. Even in the blogosphere, one has to be on the cutting edge, or be left behind. It is not what I would call a passive income.

]]> By: Scanner http://www.savingadvice.com/blog/2008/08/31/102272_passive-active-income.html/comment-page-1#comment-414565 Scanner Sun, 31 Aug 2008 21:07:30 +0000 http://www.savingadvice.com/blog/2008/09/26/102272_are-you-working-for-the-wrong-income.html#comment-414565 "Another advantage of having passive income is that you don’t pay Social Security taxes and Medicare taxes on it." This is entirely incorrect and that assumption will land you 7 to 10 in the Fed. Pen. “Another advantage of having passive income is that you don’t pay Social Security taxes and Medicare taxes on it.”

This is entirely incorrect and that assumption will land you 7 to 10 in the Fed. Pen.

]]> By: A Marino http://www.savingadvice.com/blog/2008/08/31/102272_passive-active-income.html/comment-page-1#comment-414559 A Marino Sun, 31 Aug 2008 20:58:55 +0000 http://www.savingadvice.com/blog/2008/09/26/102272_are-you-working-for-the-wrong-income.html#comment-414559 Another advantage of having passive income is that you don't pay Social Security taxes and Medicare taxes on it. You want to pay the least taxes that you can. Although real estate is considered passive income, I wouldn't say that it is free of work. Being a landlord isn't an easy job. It requires you to make sure rent is collected. You may also be woken up in the middle of the night for an emergency. When you are on vacation, you have to leave an emergency number for the tenants. Then, you also may have to go through the trouble of evicting tenants for non payment. Another advantage of having passive income is that you don’t pay Social Security taxes and Medicare taxes on it. You want to pay the least taxes that you can.

Although real estate is considered passive income, I wouldn’t say that it is free of work. Being a landlord isn’t an easy job. It requires you to make sure rent is collected. You may also be woken up in the middle of the night for an emergency. When you are on vacation, you have to leave an emergency number for the tenants. Then, you also may have to go through the trouble of evicting tenants for non payment.

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