What is your financial target in life? And how close are you?
>want to live from passive income
>estimate i need roughly 30k pre taxes as passive income per year
>expect 2k passive income in 2018
>expect to reach my target in 10 years
Not sure what to do with my time when I hit the target though.
Other urls found in this thread:
investopedia.com
twitter.com
>Want to buy my own house
>Possibly want to buy my mother a house (assuming she wantes to move)
>Want to make us both financially independent (20k passive income each or even less, neither of us spends a lot or travels)
Very close, I just invested € 3.500 in crypto and I'm already up to € 3.000!
In all seriousness I don't know, two consecutive bullish years like 2017 and some non-retard trades could conceivably make me a millionaire by the end of 2019
I am kinda old-fashioned and dont have much in cryptos myself. I bought 0.1 bitcoin on ebay back in 2012 or 2013 for something like 15 bucks. But that was in no way an investment. It was just a way to see how it works.
But anyway. Generally I think that 2019 will be the end of the long bull market that we see. In a couple decades people will look back and consider this the "golden tenners" or something like this. And in 2018 I expect to see a final hurrah. With some serious gains.
But after this, cryptos will be the first indicator for the turn. Also, cryptos don't create a passive income.
BTW are you from a eastern european country?
>Also, cryptos don't create a passive income.
Well you know what I mean: gain enough from cryptos, cash out and reinvest, get passive income from that.
Also not entirely true, some coins do generate passive dividends regularly. NEO and VEN for example.
I'm italian.
I want to have more money than everybody else
I see. Technically that would be active income. As you would be a (day)trader. But who cares what it's called if it works, right?
I was just asking for the country as this need to care for the mother is not so strong in westrn countries. From my experiences. But now I learned something which is always nice.
Not sure what the housing prices in italy are like. But I guess you'd need something between 100k and 300k? That's still a long way from 3.5k+3k.
Well, current highscore is 120 billion USD. That'y very ambitious.
I don't really "need" to care for my mother, she has her own job and eventually will have her own pension.
But since I don't plan on a long term relationship or children she's probably the person I will care for the most in my life, and I respect the sacrifices she made for me.
I know what they say about italians and their mothers, but it's genuinely not like that. I want to help her, make her as comfortable as possible, but no way in hell we'll ever share a living space again.
She also has a rare degenerative neural disease, it's under control but it made work so much more tiring and stressful for her.
As for housing... Yeah owning a nice house would cost me something around that, and yeah I don't have any delusions it will take a while, especially since I intend to never cash out too much, always leave some money doing work in crypto.
>I want to help her, make her as comfortable as possible, but no way in hell we'll ever share a living space again.
I think that's what a lot of people feel like. At least that is exactly how I feel about my mum too.
>always leave some money doing work in crypto
See, that is what I don't understand. Realistically all cryptos will find their "fair" price. Whatever that might be. And swing around that price in a range of maybe +10% and -10%. Just like all other commodities and currencies.
So it is basically not working for you. Compared to other investments. Same with gold and other precious metals. They are not working for you.
And another BTW: I have been to Italy twice in my life. And in all honesty it is truely a beautiful country. If I was a multi-millionaire I would definetely get myself a house in Italy.
Unfortunately the economy currently seems to be rather vulnerable. And a lot of political challenges open. A typically undervalued market.
This won't be of interest for most people on this board but here is another funny thing:
I guess we can all agree that cryptos are a high risk - high return investment. And on this board the average user overcalculates the return. And ignores the risk. "cryptos are the future."
And in my old-fashioned business job all my coworkers are exactly the opposite. They see cryptos as the mother of all hoaxes. They overcalculate the risk. And ignore the potential return.
No technically it wouldn't be
What are your expectations for return? Are you still tryin to grow your principal or break even every year? Is that pre or post tax?
This is a never ending discussion. And I agree that online (day) trading is considered as passive income by a lot of people. But you have to sit in front of your device. Maybe for hours per day. You have to have knowledge about the market. You have to make active desions multiple times per day. You have to think . That is not passive income for me,
"The type of earnings people usually associate with this are gains on stocks, interest, retirement pay, lottery winnings, online work, and capital gains.
While these activities fit the popular definition of passive income, they don’t fit the technical definition as outlined by the IRS. Passive income, when used as a technical term, is defined as either "net rental income" and "income from a business in which the taxpayer does not materially participate," and in some cases can include self-charged interest."
I made a rather simple plan for myself: I defined a sum that I will keep in cash at all times. As a safety net. Some say this should be 2-3 x the net monthly income. Some say "the cost of a new car". For me it's 20k. But I have a family and some responsibilities. So if you are younger & single / not married you would need significantly less i guess.
Everything above that will go into something that creates passive income for me. This is basically:
50% stocks (3-4% return) medium risk - medium return
50% p2p lending (8-12% return) high risk - high return
So maybe 6-7% overall return + what I put in from my regular job.
Putting all this in a nice excel spread sheet it showed that 2028 will be the year where my passive income will be as high as what I get from my regular job now. Which woud allow me to quit my regular job. If I kept going this way until retirement I would have around 10mil.
$100,000,000 Unironically.
I'm at 900k.
Wow, that is very impressive. Both the target and where you are at already. Two questions if you don't mind:
1. Among the people you know, is 100 mil a lot of money or more like average?
2. What is your plan to go from 0.9 to 100?
I guess the thread is close to dead by now. One last thing: the biggest financial lever is compound interest. In a positive and negatve way.
Positive if you benefit from it. And negative if you have to pay it.
Be smart and let other people pay you.
It's an inconceivable amount of money for everyone I know, even 10k would be a lot to them.
I'm looking into many things. One is crisis investing and paying for the research that Doug Casey does, he looks for high reward investment opportunities around the globe. Another is multi-family real estate (looking for opportunities to do value-adds), another is internet businesses. Honestly, there's no concrete plan yet. I just know that's what I want and keeping my mind focused on it everyday hoping I'll subconsciously come up with ideas or notice more opportunities.
>buying a house
what are you, poor? you can't just inherit one later?
eh, axing out my Roth is the best. even if I only did shit funds like VTSMX, each year is effectively worth $35k tax-free. I can afford taxes now and I know that tax rates will inevitably increase due to certain (((influences)))
That doesn't even make sense. If you want to buy a house you are poor?
Yes, the tax and especially the retirement planing situation in the US is much different compared to other countries. I don't live in the US and so I can't benefit from all the saving benefits.
For comparison:
-- The non-taxable income here is around 10k USD per person per year.
-- For capital gains 1k USD per person per year is tax-free.
-- There are no relevant tax benefits for personal retirement saving acounts. Which means full taxes are applied.