Announcement

Collapse
No announcement yet.

What Are You Doing To Build Passive Income?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    What Are You Doing To Build Passive Income?

    SA Forums Community - thought I'd pose this question to the board.

    What are you doing to build passive income?

    I'm working one obvious method - investing in stocks, I've also got an app called honeygain.com installed in my computer, but thoughts or comments would be appreciated. I'm interested in being experimental these days.
    Last edited by james.hendrickson; 11-21-2020, 09:15 PM.
    james.c.hendrickson@gmail.com
    202.468.6043

    #2
    I'm investing in stocks, bonds, mutual funds, and ETFs. Once we are ready to retire, that portfolio will be our source of income in the form of interest, dividends, capital gains, and when necessary or with RMDs, selling of shares.
    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


      #3
      Originally posted by disneysteve View Post
      I'm investing in stocks, bonds, mutual funds, and ETFs. Once we are ready to retire, that portfolio will be our source of income in the form of interest, dividends, capital gains, and when necessary or with RMDs, selling of shares.
      Pretty much the same approach. Invested almost entirely in mutual funds (roughly 80/20 stocks/bonds) with about a 50/50 split between retirement vehicles (401k's and Roth IRA's) and mutual funds in a brokerage account. Post-retirement, I'm targeting an approach where we would balance withdrawals from 401k's, receive (rather than reinvest) the dividends & capital gains from the brokerage account, and supplement with selling shares from the brokerage account as required to generate income while working to minimize tax implications.

      Comment


        #4
        Primarily stock mutual funds/ETFs, with a small bond MF position in retirement accounts. Also working to build up more rental real estate properties. Long term, the plan is to have our net worth held equally between retirement MFs, taxable MF/ETF, and real estate.
        "Praestantia per minutus" ... "Acta non verba"

        Comment


          #5
          Currently just investing in the markets.
          I'm receiving a nice sum annually from dividends and capital gains
          All are currently reinvested

          Brian

          Comment


            #6
            Originally posted by bjl584 View Post
            Currently just investing in the markets.
            I'm receiving a nice sum annually from dividends and capital gains
            All are currently reinvested
            Exactly. I was curious so I just took a very rough (and incomplete) look at our 2019 year-end income numbers from our portfolio. Without digging too deeply, I tallied up at least $47,000 in interest, dividends, and capital gains. And there are a few accounts I didn't bother looking at so the complete total was probably $50,000 or so.
            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


              #7
              I hate dividends and capital gains. Just costing me money in the form of 35% federal and 5% state taxes. That's why I like my index funds. They don't spin off a lot of dividends and capital gains. I had $3500 of dividend and cap gains on a $600k taxable portfolio last year. All my fixed income is in my deferred accounts. Once I retire and I'm in the 12% tax bracket, I won't mind as much, but the way I have it set up now is to minimize taxes.

              Comment


                #8
                We do a number of things for passive income:
                * Income from cash renting farm ground
                * Income from ground enrolled in government wildlife habitat programs
                * Serve on a board of a business for directors fees
                * Own part of a business and receive quarterly dividends
                * Take monthly draws from stock investments within our IRA

                Comment


                  #9
                  My Passive Income: (no retirement included)
                  1) Stocks, Bonds, Funds, and generally equities, = $340/month from dividends. <taxable accounts only>
                  2) Real Estate - monthly passive income (I'm the CFO of a very small LLC partnership) . = I think my monthly net cashflow /profit is close to $1096 net,month/ *$400-500 profit.
                  *3) Hobbies (started to grow weed for friends, wood working small projects (made chess boards & random things) , candle making [I make Bender the Robot candles for gifts], selling produce once in a while, and other various craft projects, Poker winnings,. (+/- $600 per month)
                  4) Royalties - I have some I.P. for sale on Amazon, and it generates a small (VERY SMALL) monthly income from clothing sales. (I want to increase this, but I've been lazy.) (+/- = $5 per month)
                  5) REIT - Wife has a reit that was worth like ~$12k ish (@ times) and pays us a modest, but reliable $80 per month.
                  **6) Side Jobs = Was mowing (2) lawns for $45 every 10 days (about 1 hour of work) + working as part time Bike Mechanic (8 hours a week * $12 p/h)
                  7) Small Loan(s) = I have 1 very small loan given to help out a friend (<$400 now @ 6% interest) and a 40k loan to my brother @ 4.6k % int (we paid off my moms house, he'd rather pay the int to me than the bank, and I was cool w/ it as its our inherited childhood home). Probably close to $150 per month in INT.
                  8) Selling/recycling things I no longer need/use online = $40/month

                  Puts my Roughly Passive income cashflows at about = 340+450+600+5+80+150+40 = $1,665. <----- HOLY POOPY! This is my 1st time adding these together.... One of my bucket list milestones is to reach $1,500 / month in passive income. I'll have to refine this calculation more precisely. I'd LOVE to Scratch another one off the list! (I'll repost in here if my data is accurate!) . TY for this thread, I needed some motivation! ** = Side job income not included, as the lawns are only during summer. And bikes are totally active work, albiet a tiny income.

                  **(not included) * (included) = not truly passive. But these are things I would likely be doing weather paid of not (exception maybe w/ the hours put into lawns and bike shop). I enjoy all the hobbies and recycling (i despise lazy waste) so I think of them as tokens of value for things I wanted to do anyway.

                  ***Also not included = My 14 hour per week part time job as a photographer ($500 / week ) & my wifes income in corporate office working credit, she's making Mid 50's there annually. But these are our active jobs, so not too fair to include. (although our active numbers ought to increase, when I trade my part time bike repair job, for a more full time effort as a real estate agent. Gonna try to put i n about 20-30 hours a week doing that, so I'm busy again, and hopefully earning more per hour than $12 for my time). I'm fascinated w/ real estate and love talking to people, so this should have been a no brainer job!

                  Comment


                    #10
                    Originally posted by corn18 View Post
                    I hate dividends and capital gains. Just costing me money in the form of 35% federal and 5% state taxes.
                    Only if in taxable accounts. A lot of what I mentioned is in our Roths and 401k accounts so no tax impact to those earnings now and it's all getting reinvested.
                    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


                      #11
                      Originally posted by Fishindude77 View Post
                      We do a number of things for passive income:
                      * Income from cash renting farm ground
                      * Income from ground enrolled in government wildlife habitat programs
                      * Serve on a board of a business for directors fees
                      * Own part of a business and receive quarterly dividends
                      * Take monthly draws from stock investments within our IRA
                      Would you be kind enough to elaborate (or share helpful info) on ----> * Income from ground enrolled in government wildlife habitat programs . I'm looking at buying some acreage , Ideally adjacent to state land in michigan. I'm looking at getting between 10 and 100 acres (depending on the price & location). And leasing to farmers and/or hunters was already in consideration. But I never considered gov't wildlife habitat programs! I was planning on turning a signifcant portion of the land to improve the wildlife carrying capacity (feed lots, bee boxes, clear some areas for passage, etc). So maybe i'm already in the correct wheel house!

                      Comment


                        #12
                        Originally posted by corn18 View Post
                        I hate dividends and capital gains. Just costing me money in the form of 35% federal and 5% state taxes. That's why I like my index funds. They don't spin off a lot of dividends and capital gains. I had $3500 of dividend and cap gains on a $600k taxable portfolio last year. All my fixed income is in my deferred accounts. Once I retire and I'm in the 12% tax bracket, I won't mind as much, but the way I have it set up now is to minimize taxes.
                        this is us as well. It's a pain.
                        LivingAlmostLarge Blog

                        Comment

                        Working...
                        X