Passive Income Ideas

[QuarterMillionMan]

Another point well taken. Now I'd rather buy a good quality stock like Apple without the dividend yields.

[james.hendrickson]

Guys,

I'm big on developing passive income for myself, so here is a list of the passive income sources on my radar screen. If I'm missing any major ones, I'd appreciate a heads up from the forums:

• Stocks - dividend payments
• Mutual Funds/ETFs - payments and capital gains distributions
• Bonds
• Peer to peer lending
• Crypto
• Insurance annuities
• Bandwidth and personal data sales
• Royalties - art and music
• Real estate - Direct ownership & Fractional ownership

I've included these in the list because there is enough known about each of the sources to ensure they aren't scams, and enough information available on the web to scale each of the sources.

If I am missing any please let me know.

[disneysteve]

Guys,

I'm big on developing passive income for myself, so here is a list of the passive income sources on my radar screen. If I'm missing any major ones, I'd appreciate a heads up from the forums:

• Stocks - dividend payments
• Mutual Funds/ETFs - payments and capital gains distributions
• Bonds
• Peer to peer lending
• Crypto
• Insurance annuities
• Bandwidth and personal data sales
• Royalties - art and music
• Real estate - Direct ownership & Fractional ownership

I've included these in the list because there is enough known about each of the sources to ensure they aren't scams, and enough information available on the web to scale each of the sources.

If I am missing any please let me know.

james.hendrickson You started a new thread today but we already had this thread going (which you've posted to numerous times as recently as last week) so I moved your new post here.

[bjl584]

james.hendrickson You started a new thread today but we already had this thread going (which you've posted to numerous times as recently as last week) so I moved your new post here.

his post is a copy/paste from Facebook.
guessing he forgot that this thread was already here, or he wanted to start a new thread on the subject for some reason.

[james.hendrickson]

Guys - just a reminder. Nielsen opinion rewards totally works. Its only $5 a month or so, but its a nice little win to supplement my income from my regular job.

Link to Nielsen is here => https://computermobilepanel.nielsen....en/sdp/landing

[FrostedMoose]

Dividends aren’t exactly income though. When a stock declares a dividend the share price drops by the amount of the dividend. You don’t have any more money than you started with. You just have a tax bill whether you want it or not.

.

[james.hendrickson]

Okay, so here is another passive income idea. I know most of us on the board aren't that into Crypto, however, in my Coinbase account, I've been staking all the spare Ethereum I have. Coinbase pays about 3%. Three percent isn't much relative to stocks and cash equivalents like CDs, BUT if you have any Ethereum it makes sense to stake it to help reduce the volatility risk.

I've been doing it consistently - its only pennies right now, but its scalable.

[james.hendrickson]

Oh and one more update for this thread.

DON'T FORGET ABOUT BONDS!!!!

I've been investing in small business bonds through an app called The SMBX. SMBX stands for small business exchange. I regularly log into the site to reinvest my coupon payments.

I checked the app a few weeks ago and I saw that a brewery local to Portland, Oregon had a bond offering out to expand their locations. So, I went down the brewery and checked it out. The place was full, it was clean and it had customers. So, I put like $550 into the bond offering. Its enough to get some decent payments per month (given how the bonds are structured) and it was enough that I wouldn't loose any sleep if the brewery went under, so I pulled the trigger and placed the order.

So, the bottom line here is another classic way to make passive income is buy lending money/buying bonds. And this option has lots of flavors as indicated by the SMBX example here.

Guys just posting an update here - I'm still getting bond coupon payments from SMBX. For a guy focused on passive income from investing like me, its a real pleasure to get the email notifications about the payments.

[QuarterMillionMan]

The best form of passive incomes are those that actors & singers make everytime their song is played or TV show is aired. I don't know how much money they make but someone like Ed O'neil or Ariana Grande must get checks every week from their previous work. Must be nice.

[disneysteve]

The best form of passive incomes are those that actors & singers make everytime their song is played or TV show is aired. I don't know how much money they make but someone like Ed O'neil or Ariana Grande must get checks every week from their previous work. Must be nice.

Keep in mind that it isn't as rosy as you think. I read a bit about royalties when the recent SAG-AFTRA strike was going on. It's true that folks who worked on a TV show or movie or whatever get royalties, but they often also get paid next to nothing up front. It's not like they made a fortune when they did the work and then have money continue to flow in. In many cases, they made very little when the job was done and the hope is that the royalties provide the income down the line, but it's tough to live that way. Not the case, I'm sure, for big names like Ariana Grande, but for all of the other folks behind the scenes, that's the case.

[kork13]

The best form of passive incomes are those that actors & singers make everytime their song is played or TV show is aired. I don't know how much money they make but someone like Ed O'neil or Ariana Grande must get checks every week from their previous work. Must be nice.

Keep in mind that it isn't as rosy as you think. I read a bit about royalties when the recent SAG-AFTRA strike was going on. It's true that folks who worked on a TV show or movie or whatever get royalties, but they often also get paid next to nothing up front. It's not like they made a fortune when they did the work and then have money continue to flow in. In many cases, they made very little when the job was done and the hope is that the royalties provide the income down the line, but it's tough to live that way. Not the case, I'm sure, for big names like Ariana Grande, but for all of the other folks behind the scenes, that's the case.

The royalties also fade away over time. I've got a friend who had a minor role in the original (2007) Transformers movie (the focus of one scene & had a few lines) -- he told me once that he got royalties from the movie which were sizeable at first (~$1k/mo), especially while it was in theaters ... but the amount varied significantly, and after a few years, they dwindled to where the checks were almost comical .... $20-$30/mo. That conversation was back in ~2011 (4yrs after release). The same goes for authors -- they get a royalty with every book sold, but the amounts are hard to predict, and tend to fade over time (unless there's a sudden resurgence for some reason).

So yeah, royalties are one of the truest forms of passive income ... but they're hard to rely upon, unless you're very prolific (many & new movies or books that are constantly pulling in new royalties). That's part of why many/most actors stay active well past their prime -- the royalties dry up, so unless they were smart with their money while they were earning them, they can get to be in a bad spot. I mean, why else do you think the Fonz was still doing TV commercials and off-prime shows in his 70s?

[LivingAlmostLarge]

It's also my neighbor is a children's book author. She has royalties on her early books but her "advances" were $5k. So making that up to the publisher is easier. But when advances are now $50k getting that back in royalties takes a lot longer.

But my musician guy who writes a lot of music, teaches, plays in bands has regular royalties from commercials, etc. But his are small and they do build but he's almost 70 and comes from a family of musicians. He's inherited royalties from his grandparents who made their money writing music for horror movies. So any scary music in a movie he has a royalty. Not flash but it's like $5-6k/year. It does add up but if you aren't "famous" you need to be building it long term.

[james.hendrickson]

Another day, another $10.42 in passive income.

Small drips will soon become trickles, then trickles streams.

[james.hendrickson]

Another passive income idea: billboard rentals. Buy one of those suckers and rent it out.

[bjl584]

Another passive income idea: billboard rentals. Buy one of those suckers and rent it out.

Not sure how passive that is.
Maintaining that structure and managing the lease to have it on someone's property seems like a fairly active endeavor.
There could be some barriers to entry there as well.

To flip this one around, if you own property near a highway or intersection, then shopping for a company to put a billboard on your land could earn you some decent side income.