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    How many streams of income do you have?

    Supposedly millionaires have several streams of income.

    I'm working on building out my dividend cash flow, so I wanted to ask you guys: How many streams of income do you have?
    james.c.hendrickson@gmail.com
    202.468.6043

    #2
    4 currently.

    Full time job, part time job, under the table gig, dividends

    Brian

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      #3
      Three. W2 job, rental properties, side hustle in event planning. I'm not a millionaire though and if I were I'd kick at least one of those streams of income (the w2 of course)
      *******************************
      OK after seeing all these responses, I'd like to revise my original assessment.
      I have 3 rental properties (7 doors) and if one is vacant, I still have the other 6 coming in. So with that and w2 and side hustle, IDK if you'd call that 5 sources (based on number of properties) or 9 sources (based on number of doors).

      Also, my boyfriend and I do not share finances/bank accounts but he does contribute to the expenses... I'm not sure that's an "income stream" for me per say but we are a two income household.
      Last edited by riverwed070707; 04-30-2021, 01:37 PM.

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        #4
        Farm A cash rent income
        Farm B cash rent income
        Income from federal CRP programs
        Board of directors fees (stockholder / director for private company)
        Dividend income from stock ownership in above company
        Incidental construction consulting work
        Interest income from investments
        Monthly draws from IRA

        Guess that makes (8) sources.
        Social security at some point in future will add another.




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          #5
          My job
          Interest
          Dividends
          Capital gains
          Steve

          * Despite the high cost of living, it remains very popular.
          * Why should I pay for my daughter's education when she already knows everything?
          * There are no shortcuts to anywhere worth going.

          Comment


            #6
            My job
            DW's military pension
            1x rental property
            Savings/Investments returns/dividends/interest

            Over the next decade, we're planning to add at least a few more -- new job for DW, additional rental property(s), my military pension (even swap), maybe a part time job for myself... more TBD.
            "Praestantia per minutus" ... "Acta non verba"

            Comment


              #7
              Originally posted by kork13 View Post
              Over the next decade, we're planning to add at least a few more.
              Over the next few years, we're planning to lose an income stream - my job.
              Steve

              * Despite the high cost of living, it remains very popular.
              * Why should I pay for my daughter's education when she already knows everything?
              * There are no shortcuts to anywhere worth going.

              Comment


                #8
                Now only 2 my W2 and DHs.

                In retirement 2 pensions
                1 social security
                2 Roth's - Do these count??
                2 401ks- count?

                Comment


                  #9
                  Originally posted by Thrif-t View Post
                  Now only 2 my W2 and DHs.

                  In retirement 2 pensions
                  1 social security
                  2 Roth's - Do these count??
                  2 401ks- count?
                  Investments definitely count.

                  In 2020, our investment accounts generated $43,500 in income. It was pretty much all reinvested but in retirement, that will start being our spending money. That will be our "paycheck".
                  Steve

                  * Despite the high cost of living, it remains very popular.
                  * Why should I pay for my daughter's education when she already knows everything?
                  * There are no shortcuts to anywhere worth going.

                  Comment


                    #10
                    Incidentally, there is a solid IRS paper on this topic. It basically compares taxpayers who filed F706 (a tax return for an estate) versus those who didn't. The F706 filers had more of the following:
                    1. Dividends
                    2. Rental real estate, royalties, partnerships, S corporations, estates, trusts,
                      and real estate mortgage investment conduits
                    3. Wage income
                    4. Taxable pensions and annuities
                    5. Tax exempt interest income
                    6. Business income from sole proprietorships.
                    Here is the link if you're interested in learning more.
                    james.c.hendrickson@gmail.com
                    202.468.6043

                    Comment


                      #11
                      Originally posted by disneysteve View Post

                      Investments definitely count.

                      In 2020, our investment accounts generated $43,500 in income. It was pretty much all reinvested but in retirement, that will start being our spending money. That will be our "paycheck".
                      Not to be a Debbie Downer but that "paycheck" would not be there if the markets see a crash or correction, just saying. We all like to see the market go higher or go sideways but fail to see it crashing or correcting.

                      Comment


                        #12
                        Originally posted by QuarterMillionMan View Post

                        Not to be a Debbie Downer but that "paycheck" would not be there if the markets see a crash or correction, just saying. We all like to see the market go higher or go sideways but fail to see it crashing or correcting.
                        For sure. The income generated each year varies considerably based on market performance, portfolio turnover, interest rates, etc. We have some taxable growth funds that sometimes have large capital gains; other years they have much smaller gains. The fixed income stuff is obviously more consistent.

                        I will say, though, that how much income equities generate isn't necessarily tied to market performance. Dividends can remain steady even if share prices fall. And capital gains in a mutual fund also may not track the market. If anything, there may be more turnover in a down year if the fund has to liquidate more holdings to fund redemptions, potentially generating more capital gains. That's always a bummer in a taxable fund when the account value drops and you get hit with a big CG tax bill.
                        Steve

                        * Despite the high cost of living, it remains very popular.
                        * Why should I pay for my daughter's education when she already knows everything?
                        * There are no shortcuts to anywhere worth going.

                        Comment


                          #13
                          We (2-adult household) have: Profit, Earned, Interest, Dividends, and Capital Gains. Not all are streams. Some are trickles. One is a river. Others are untapped lakes (won't be converted to streams until after retirement).
                          Last edited by scfr; 04-30-2021, 05:45 PM.

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                            #14
                            Tom Corley is the author of "Rich Habits", which is an analysis of the behavior and habits of the wealthy. I follow him on twitter, and he is surprisingly responsive on his twitter account. He posted something about streams of income and I messaged him. To my surprise he answered my question.

                            In general, I like the guys stuff because its based on data - which beats most of the opinion/editorial copy that's published on the internet.

                            I'm posting the exchange here. Its on-topic.



                            Last edited by james.hendrickson; 05-09-2021, 07:09 AM.
                            james.c.hendrickson@gmail.com
                            202.468.6043

                            Comment


                              #15
                              What is TICs?
                              Steve

                              * Despite the high cost of living, it remains very popular.
                              * Why should I pay for my daughter's education when she already knows everything?
                              * There are no shortcuts to anywhere worth going.

                              Comment

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