How do I generate passive income

**simpleyme** · 07-31-2008, 06:46 AM

maybe marry a rich person? I would look at the bar for that I kid you not our neighbor ladies on both sides are widows who hang out at our local bar , I am certain that one is a multimillionaire and the other at minimum has a paid for home and life insurance money ;-)

**ActYourWage** · 07-31-2008, 06:56 AM

Originally posted by questions View Post

I hear that passive income is the way to go. I want to learn how to generate it. It sounds perfect for me because I get tired easily and I don't like to exert myself a lot. I also don't want to work a lot. I don't want to spend any time making the money, so passive income sounds like the perfect solution. I want to earn enough so that I can buy a house with a pool and I can sit by my pool all day drinking beer and have the money come pouring in. Please teach me how I can do this because I'm ready to start earning like this right now.

I don't think your plan will EVER work and if it does, it doesn't sound healthy. This idea sounds lazy.

**DebbieL** · 07-31-2008, 09:24 AM

I was thinking this post was a troll, but you never know. Lots of luck with the laziness route to riches, lol.

**jIM_Ohio** · 07-31-2008, 09:28 AM

Figure out how much your beer, mortgage and pool will cost.

Multiply that amount by 25.
Put that amount into a 40-60 or 20-80 fund which pays around 4% yield. Then live like a king.

**aurielle** · 07-31-2008, 06:08 PM

Start buying lottery tickets and hope like hell you'll win.

**cptacek** · 08-01-2008, 01:19 PM

1. Find a fast food restaurant that serves coffee but doesn't have warnings on the cups.
2. Let the cup slip into your lap
3. Sue
4. Profit

(thanks /.

)

**LivingAlmostLarge** · 08-01-2008, 01:29 PM

Read this book I reviewed. He is now rolling in the dough. Book Review: Million Bucks by 30 | LivingAlmostLarge

**amarowsky** · 08-02-2008, 06:59 AM

I'd say screw all their information and do what every hard working american millionaire has started off doing!

Easy as 3 steps.
1. Sell everything you own
2. Buy a dirty 30 of your favorite adult beverage of moderate price
3. Open a roller disco.

No matter what kinda beer u buy it equals Truck loads of fun

**disneysteve** · 08-02-2008, 10:20 AM

Jeffrey, why did you post this? Just for entertainment value, I'm guessing. Obviously not a serious question.

**cschin4** · 08-02-2008, 10:30 AM

It is a reasonable question and one which the majority of people are looking for. Why work hard by the sweat of your brow when you can engage in some scam to part stupid people of their money? It has been done for years. So, OP, keep looking. There are many ways to part people from their money with minimal effort.

**Scanner** · 08-02-2008, 10:52 AM

Actually, it could be made serious if you twist it around from the obvious "I've got something to sell (MLM)" to an investing question.

Investing for income used to be really in but in the 80's and 90's, it was more "in vogue" to invest for growth.

Sometimes I think about constructing an entire portfolio on income and "easing" my way into retirement.

Let's figure for every $100,000 you have, you can average $5000/year on 5% interest. You just keep buying treasuries, muni's, CD's, and dividend stocks (utilities are good) and every year, your paycheck means less and less.

Now, before you poo-poo me, think about this for a minute. You get up to $500,000 and you now have $25,000/year in passive income. If you are a family that makes $75,000/year. . .you don't worry so much if you get a disability, lose a job, etc.

However, if it's in a Roth, well. . .it may as well be buried in a box in Fiji, right?

I often wonder if stuffing our retirement money in tax shelters (ROTHS, SEP's, 401(k)'s) just because the pundits tell us to do this is really the right idea. I mean, we all save and save and save and save, for that magic age of 65 (67.5 for my generation) when we can go on Medicare and we don't get to enjoy any of the fruits of our savings.

I'm not sure this entirely makes sense sometimes.

I'm always one to question the status quo and give a contrarian idea some due.

My mentor in my field just bought muni bonds, never had an IRA or any other shelter. While that was a conservative investment philosophy, esp. in the roaring 80's and 90's, when he became disabled, he had a lot of passive income from them (plus more than a little principal) and he didn't have to go raid or borrow from a Roth or 401(k).

Something to think about. . .although I know contrarian thoughts don't usually go over well here at savingadvice.com

**Ima saver** · 08-02-2008, 11:29 AM

I could probably live on the interest I earn in savings, if I lived in a modest paid for house and only owned one car! I am making about $65 a day which is $23,725.

**disneysteve** · 08-02-2008, 12:43 PM

Originally posted by Scanner View Post

I often wonder if stuffing our retirement money in tax shelters (ROTHS, SEP's, 401(k)'s) just because the pundits tell us to do this is really the right idea. I mean, we all save and save and save and save, for that magic age of 65 (67.5 for my generation) when we can go on Medicare and we don't get to enjoy any of the fruits of our savings.

Couple of thoughts:

1. The age for Medicare is still 65. It is the age for full social security benefits that is 67.5 for you.

2. In non-sheltered accounts, the muni interest would be tax-free but the CDs and stock dividends would be taxable. Not sure about the treasuries. So that 5% return might only be 3.75% roughly after taxes which might barely keep up with inflation. The retirement accounts have the disadvantage of not being able to touch them at a young age, but their are provisions with Roths at least to access money early if needed.

3. I would agree with you that you shouldn't "bury" all of your money in tax-sheltered accounts that you can't get to. We've got Roths, my wife has a 401k and an old 403b, and we've both got traditional IRAs from before. We also have a few taxable mutual fund accounts, a brokerage account with some individual stocks, some Series EE and I bonds, a CD, a few money market accounts and our checking account.

**jeffrey** · 08-02-2008, 03:49 PM

Originally posted by disneysteve View Post

Jeffrey, why did you post this? Just for entertainment value, I'm guessing. Obviously not a serious question.

I get a lot of weird questions. Believe it or not, some worse than this one and what I've found is that if someone ends up emailing me directly, they are usually serious about the question. They really have nothing to gain when they email other than have their questioned answered or ignored. Unfortunately, I believe that the person was serious, although having a huge misunderstanding of what passive income entails.

He wants the benefits of passive income, but thinks that he can get them without any real work not understanding that in order to create the passive income, it takes a lot of work to earn the money or create the passive income stream. This is an illusion that a lot of people have, just usually not quite to the extent of this guy.

How do I generate passive income