Is passive income just an urban legend?

Is passive income just an urban legend?

>Become a real estate broker
>hire real estate agents
>get real estate agents clients (buyers and sellers)
>earn money from there hard work while you sleep

>something goes wrong and you are the responsible
real passive income: website or video ranked in a spot good enough that gets view forever

>real passive income: website or video ranked in a spot good enough that gets view forever
not forever. just until the seo algorithm changes (multiple times a year), you get flagged (increasingly common with new youtube standards, competition can flag you out of business), or competition out-ranks you. then there's the obvious part of 'how do i rank in good spot above all these other people in my niche'. other than that it's a guaranteed strategy.

passive income is real but it takes more effort than the type of person looking for passive income is willing to put fourth. passive income is almost a meme. there is nothing passive about it at the beginning phase.. there is no guarantee you will succeed. and most people take months to years depending on their marketing ability to reach it.

take adult friend finder for example. they have a revshare program for affiliates. it's a good example of passive income strategy. when people sign up for a paid monthly recurring membership through your marketing efforts, you will get your share of the revenue (hence it's called revshare). you will get a % of the membership fee they're paying every month. most people don't cancel. not because they dont want to, because they're bad with money. the passive comes in after you stopped promoting it last year and you still have people with active memberships gaining you a passive income.

then there's things which are passive but earn you pennies like mining cryptocoins, or doing surveys. these take minimal work and get you minimal profit. don't waste your time unless you're looking for lunch money.

>become really good at something
>become self employed
>work for 10 years
>start agency where you offer same services to your old clients, but hire freelancers to work under you
>eventually hire an agency manager to manage the agency.

Invest in a Mutual Fund.

Wow, something that actually makes sense on /biz

>become really good at something
>become self employed
Can you guys help me listing a few skills that you can learn by yourself which still will be profitable in the foreseeable future?

Are you considering collecting capital gains and dividends active?

Unless you have at least $100k in the bank, yeah it's a myth.

And even with those people it's not truly "passive" you still have to keep an eye on that money and what it is earning.

Dick sucking. Be really good at it, and essentially become a pimp. Then, hire a ho-manager, and pimp from home. Rent debit machines. You'd be the biggest pimp, juat for accepting Visa.

>thinking about dicks all day
>waiting for a chance to write homoerotic replies
Shut down your computer and go to your local gay club.
Come out of the closet, mommy's gonna be proud of you!

Pretty much this. Pop a few hundred thousand into rentals or some other funds, it's pretty easy and quite passive, especially when you get a property management company.

But you'd be a fool to chase passive income instead of capital growth unless you're ready to retire. It's very tax inefficient.

Depends on what your idea of "passive" is.

I guess it depends on how you are trying to obtain it, but no, it's not. Back in the 50s banks and financial planners invested the money of regular people with the goal of income, rather than growth. It was, and is a lot less risky, but you probably won't get rich doing it. You also need enough to invest so that the income is worthwhile, but I guess what is worthwhile is subjective. Some people really could use a few hundred extra per month, and that would be very worthwhile to them; others might think anything less than a couple thousand, or more isn't worth the hassle.

Anyway, what you want to look into is shit like dividend paying stocks, Real Estate Investment Trusts (REITs), annuities, etc. Stuff that generates a consistent return during a certain period. Dividend paying stocks can be hit or miss though. Generally you can rely on companies that pay dividends to continue to do so, but there's no law that says that they have to. Dividends are a bonus incentive to encourage people to invest in a company's stocks. Unless you've already got a decent amount to invest into this, you should probably instead focus on growth investment until you do.

get a million and you can live off that indefinitely on a moderate 80k a years

Nah. Asset protection bruh.

There is litterally nothing gay about dickfarming.

Chase both. Buy house. Put for sale at a ridiculous price. Rent or get lucky and sell. Poor wagecucks around here love rent to own shit so u can even get high as fuck rents. Sure u lose the asset in this case but shit houses are cheap here. I just bought one for 10k

>8% after taxes, fees and inflation

Sure thing m8

>80k
You mean 4 million. You're making money off dividends (2%) for passive income, not growth stocks. The market crashes 15-20% of the time so those would be years you make negative money on growth stocks.

Then there's taxes and fees to worry about.

>bought house for 10k
My 31 year old 2 bedroom apartment outside of a city was $139,000.

Massachusetts, not even once.

Yes, passive income is a meme.

Imagine if you will you are 25 years old.

Every year you invest 5 thousand dollars, long term stuff to generate passive income.

Your return is 5% because we are being realistic.
Everything you get as a return for your investments you also invest so you can further increase your return, so that when you are 26 you have invested 10.250$ and so on.

By the time you are 39 you get back more than the five thousand you invested in year 1, huray! Not bad at all for 14 years.

You are now 65 and you are retiring.
You get back almost 32 thousand dollars every year! Wow!

But how much did you put into the stock market?
640 thousand dollars.

You could be living in a giant mansion, you could have lived there for years.
Your children could have attended good private schools and universities.
The trips you could have taken, the car of your dreams you could have been driving.

Imagine all the happiness you could have bought with over half a million dollars.

B-but at least you will have MUH PASSIVE INCOME for the last 15 years of your sad lonely life

so you go to your office and have "80k" a year salary and pay taxes on that how come it is still 80k?
Yeah you know you can buy more than stocks right? Or they dont teach that in trade schools for plumbers?

>not giving the 640k to your kids who will turn that shit into even more money and put your bloodline into the upper class forever

Anything with an 8% return is not anywhere near passive. Enjoy your trip to Gamestop, I'm sure they have some sale for your waifu simulator.

>so you go to your office and have "80k" a year salary and pay taxes on that how come it is still 80k?

No idea what you are blabbering about. Turning 1 mil into 80k net inflation adjusted annualy is borderline impossible, your ramblings about my job wont change that

That has nothing to do with passive income.

I agree with you though.

The ONLY way to become rich (excluding geniuses and bullshit like the lottery) is inheritance.

Or you could speed it up by investing 3-4k/month

Then in 10 years you don't have to work.

Imagine, 25 year old retiring at 35! Wow!

I bet he's glad he doesn't have to work the next thirty years like the guy in your model.

btw, time is our only real asset, and it's the best thing money can buy you. For real.

Sometimes i forget im on Veeky Forums.
1. You have a business that generates a lot of money and you actively manage it
2. You saved up a million dollars
3. Oh golly what should i do with it?
4. You ask a COMPETENT person to manage it.
5. At 1 million you can get a pretty good asset manager to look over your million
6. So you let him handle your shit and you get your quarterly/annual coupon
7. Literally profit doing nothing.
You pay taxes on income, if you earn 15k you can say you earned 15k, even if you have to pay a tax on that. And let us just assume, that you invest into a country with negative inflation rates, that would actually increase your returns now wouldn't it?
If you have money a lot of doors are open to you. Robin hood is not the epitome of possibilities you know

>if you invest ten times as much money it will go faster

oh so if I'm already rich and make 500k a year investing 10 percent of my income will mean I get even richer???

wowowow!!!

Leaving your children money that will generate passive income for them has nothing to do with passive income?

The goal and purpose of the passive income meme is to become rich yourself.

If you live like a monk all your life, save up every penny and give it all to your children when you die you don't have more money than other people, you have less.

You have lived a poor man's life and get nothing for it.

Being incredibly frugal has nothing whatsoever to do with the "put money aside now and become rich later/ retire early" memery.

Being incredibly frugal your whole life

Only idiots calculate with money they never even receive. "You can live on 80k" also surely doesnt mean "You can live on 80k after tax because muh retard logic", it means "You can live on 80k".

And please show me all your genius managers that constantly pull in 8% after tax, fees and inflation, even in bear markets, Im waiting. People still debate the everlasting fuck out of the EMH and you claim without source that theres a secret society of fund managers who pretty much deliver twice the average performance... please.

Maybe some people make more money than they need and would rather invest it than blowing it on a luxury car that costs 30k more than a perfectly fine one or a are content with a 4 star instead of a "lulul 300$/night" 5 star hotel?

Knowing that your children and grandchildren will have an easier life is nothing?

I never implied any of that.

Saving up money you will inherit to your children has nothing to do with passive income.

Stop being such an idiot

I've written five short ebooks I've put up on Amazon. First one went live in March. I use their pricing model to determine the prices - one is $2.99 and the rest are 99c. I've gotten pretty lucky with one and have made a little over $300 since then.

Considering I make about $5,800 a month after taxes it's total chump change. However, if you go for volume or just get one that hits you could supplement yourself well.

Passive income for most people shouldn't be seen as a replacement to a job, but rather a complement.

>I never implied any of that.

Yes you did, you started strawmanning "hurr Ill assume you save up every penny and life like a monk".

Again: Save money while you work, the dividends of your payout are used to sweeten your retirement, and instead of blowing the original sum away you give it to your kids.
Thats passive income you receive, and your kids will receive passive income thanks to your capital as well.

You know about financial instruments other than stocks? You know funds to avoid taxes? Fees are 0.1% in good private banks for custodian fees, transaction fees are even lower.

Oh so what you are saying is that passive income is a big meme, you should sacrifice your life's quality for the sake of your children's inheritance and the only way to become rich is to be on the receiving of such an inheritance

great!

Yeah Im sure your secret league of godlike fund managers (you still didnt mention a single one) who will serve every schmuck with a measly 1 million bucks will totally manage your money for next to no fees and help you avoid taxes on top.

You constantly pull up new shit out of your ass to defend your retarded position. Just stop.

>passive income is a big meme
Never said that, doesnt even mean anything

>you should sacrifice your life's quality for the sake of your children's inheritance
Its something you can do, and yes, kids cost time and money. Big fucking surprise.

> only way to become rich is to be on the receiving of such an inheritan
Bullshit, never said that. Stop strawmanning.

SYZ/J.Safra/BNP will both do 1 mill acounts, PICTET/Lombardier/UBS/CS will give you all of that on 5+m

Cool. Do they consistently deliver 8% after tax, inflation and fees, even in bear markets, no cherrypicking of 1 out of 100 funds?
Remember, burden of proof is on you. Show me the data.

I'm starting to suspect that you don't know what investing is...

Fantastic argument. So you cant show me any proof that those guys outperform the everlasting fuck out of the market like you claimed?

for most people passive income is a supplement that pairs with working until you put something like 30-40 years into it, unless you are a crazy stock trader with some good luck.

If you are actively trading stocks all day long it's not passive income.

Implying millenials and generations after them would create and not squander any wealth you have created.

What if you're just raking off the stock dividends and capital gains disbursements from funds?

>you could have lived in a giant mansion
>$640k
Nigger where the fuck do you live where 640k gets you a mansion, I live just outside of Seattle and 640k will get you a modest, old 2000 sqft house in need of repairs at best.

>Lives in an area notorious for inflated real estate prices from Asian real estate investors
>surprised that houses can cost less than $500k

Blame your politicians for fucking up the west coast this badly.

You do realize that almost no one can consistently beat the market on a long term basis without insider information or millions of dollars worth of supercomputers, algorithms and genius PHD's working 24/7 that only hedge funds can afford (and even they have a very hard time beating the market consistently).

Then you will make like 5% won't rake in mad dosh

Kind of depends on your capital, yes?
Maybe I could shoot higher, but I'm happy with never having to work again.

Unless you live in Nowheresville, Kentucky or some other god forsaken hick town with a population in the double digits 640k will not buy you a "giant mansion" or even a mansion. Here's a list of the largest 10 cities in the US:
1. New York 2. LA 3.Chicago 4.Houston 5. Philadelphia 6. Phoenix 7. San Antonio 8. San Diego 9. Dallas 10. San Jose Out of all of these cities Dallas has the lowest median home price at $153,900. I went onto Zillow, searched for homes in Dallas and put in the following filters: Price min $620,000 Price max $660,000 Beds +1 Bathrooms +1 square feet minimum of 1 and I sorted by newest first. For around $640k you can afford a fairly nice home that's less than 10 years old that's around 2500-3500 square feet with new and high quality appliances. A 3500 sqft home made 5 years ago is a very good deal at 640k however that's a far cry from a "giant mansion". There's no single definition for a mansion that's agreed upon by every real estate agency but in general most sites seem to agree that a house has to be at least 8,000 square feet to be considered a mansion. I went on Zillow took off the price parameters and put in 8,000 square feet for the minimum home size and had it sort the homes by cheapest first. The cheapest home in Dallas that's at least 8,000 square feet is going for $1.15 million and the next cheapest one is going for $2.495 million which is a lot more than $640k which definitely couldn't buy you a mansion in Dallas let alone a giant one. Also the average home price in the US is $188,900 nearly 40 grand more than the average home price in Dallas. so unless you live in the middle of nowhere you're not buying a mansion with 640k.

Serious answer, learn how to code.

Currently learning front-end web dev, what should I do. not op but im 18, out of high school.