Comments on: Is there such a thing as passive income?

By: Jack_of_all_trades

Jack_of_all_trades — Tue, 09 Aug 2011 12:02:32 +0000

I don’t know how can one categorize an income as “passive” if it involved an initial investment of time or/and money or if it involves a considerable amount of risk of devaluation. Buying a property to rent is nowadays one of the most risky investments, one must face the perspective of seeing his property devaluating day by day. It also involves investment in hiring the real estates firm that recruits the renters, the house maintenance, etc. Another “passive income” I tend not to regard as passive is the one from publishing a book or from maintaining a site. Who can qualify the amount of effort it implies and the investment in time, in sleepless nights, as passive? It’s like saying the building a portfolio of stocks and bonds, risking your money each time, generates effortless income. The physical labor isn’t everything, my friends from the IRS. When one makes good money investing his time and money to generate income, he cannot avoid to pay the income taxes .But when one loses, nobody gives him a cent to help him overcome his loss, and when they give it to him, it’s with a high interest. That’s live, nobody like losers because they can’t be the object of any taxes.

By: Blogging Banks

Blogging Banks — Wed, 05 May 2010 22:55:15 +0000

I think that interest and dividend income ( as well as pensions) are the closest to passive income. If you build a diversified portfolio consisting of 60% stocks/40% bonds using mutual funds for example or even individual securities, and you only treat dividends/interest as income, then your income is passive. As far as businesses that pay you, i think that if you buy one share of IBM, you are then considered to be a proportionate owner of the business. Thus any dividends that IBM delivers to you are considered passive income ;-)

By: Glady Pacius

Glady Pacius — Mon, 12 Apr 2010 22:26:53 +0000

I just found this website a while back when a friend of mine suggested it to me. I’ve been a regular reader ever since.

By: Stew

Stew — Fri, 02 Apr 2010 05:26:51 +0000

Walter, that is the point, I think. There might be relatively easy ways to make a living, but nothing is truly passive.

By: Walter

Walter — Thu, 01 Apr 2010 03:49:46 +0000

It’s nice that you have tackled this issue on its roots. Perhaps many are confused as the re real nature of “passive” income. It still involves participation and hard work. :-)

By: Ken

Ken — Thu, 01 Apr 2010 01:58:12 +0000

It takes work to create passive income, no doubt. I think the real successful ones learn to do it cheaper and cheaper over time. They learn from mistakes.