Robinhood user here. It works great for me, however you cannot use it for day trading.
True Passive Income Investments
- Thread starter samsamsam
- Start date
If you want to trade on a regular basis, there's not much better than Interactive Brokers for the data, capabilities, and low fees. Let's not confuse trading with investing however. Trading is essentially gambling with risk management and appropriate sizing. I would say dividend stocks and REITs are going to be one of the best bets for passivity. Like I previously stated though, don't buy on the anticipation of appreciation, buy simply for cashflow. As to the comment about oil not going down lower from here, I'm highly skeptical. The Mexican Government does an annual hedge, and their put options are significantly below market still. They have a record of making billions of dollars a year in that hedge. They probably know more than you or I do about the market. I trade oil futures intraday, I'd be shitting my pants holding a position for the longer term.
Easy_C
Peacock
WSP did a good blog post on the topic too.
http://wallstreetplayboys.com/the-best-forms-of-passive-and-semi-passive-income/
http://wallstreetplayboys.com/the-best-forms-of-passive-and-semi-passive-income/
That's exactly what I advise doing. Add some blue chip dividend stocks if you want.
KirklandLaundryDetergent
Chicken
If you are in Canada you can throw a bunch of dividend paying stocks/ETFs/REITs into a TFSA and get all the dividend buxs tax free.
Also if you use Questrade, ETF trading is free and there are zero fees if you have $5000 in your account.
Also if you use Questrade, ETF trading is free and there are zero fees if you have $5000 in your account.
SunW said:
Is that still profitable these days?
Neil Armstrong. First man to walk on the moon. We landed on the moon!
The competition is stiff. Recently Schwab lowered equity trades to $5. I also noticed Schwab has lowered their fees on a lot of index and ETFs. they are now cheaper than vanguard. Though I read Vanguard/Fidelity/ishares funds are often slightly better performing. if you look at the different leading funds for each industry sector the top 3 are usually the latter. However that may change now that schwab has reduced their management fees.
schwab also offers one single managment fee instead of tiered pricing. like .03 across the board whether you have $1 or $50k in the fund. with fidelty and vanguard they often start you out at like .05% or even .07 until you have a bigger chunk invested.
so for what it's worth i think you're looking for passive investment you can't go wrong with using your schwab brokerage account for no fee/no load etf and index funds. Someone said invest $25k and be rolling in the green. wish it worked like that. you'll likely be earning 4-10% per year (more or less). Even on a $100k investment you're only looking at an extra $400-1000/month, minus capital gains taxes (though I recommend you reinvest all the profits).
If you want to earn more money you have to take on more risk. This means you can't be passive. You'll want to pay close attention to your investments and market trends. Which means you'll be wasting all your time fretting over things you can't control. So maybe you earn a bit extra, but can't enjoy spending it.
There's no easy way out. Passive investing is a retirement strategy/fixed income lifestyle. If you really want the big bucks you have to put in sweat equity. In which case you're better off growing a business of some kind. Sticking with what you know and love.
The competition is stiff. Recently Schwab lowered equity trades to $5. I also noticed Schwab has lowered their fees on a lot of index and ETFs. they are now cheaper than vanguard. Though I read Vanguard/Fidelity/ishares funds are often slightly better performing. if you look at the different leading funds for each industry sector the top 3 are usually the latter. However that may change now that schwab has reduced their management fees.
schwab also offers one single managment fee instead of tiered pricing. like .03 across the board whether you have $1 or $50k in the fund. with fidelty and vanguard they often start you out at like .05% or even .07 until you have a bigger chunk invested.
so for what it's worth i think you're looking for passive investment you can't go wrong with using your schwab brokerage account for no fee/no load etf and index funds. Someone said invest $25k and be rolling in the green. wish it worked like that. you'll likely be earning 4-10% per year (more or less). Even on a $100k investment you're only looking at an extra $400-1000/month, minus capital gains taxes (though I recommend you reinvest all the profits).
If you want to earn more money you have to take on more risk. This means you can't be passive. You'll want to pay close attention to your investments and market trends. Which means you'll be wasting all your time fretting over things you can't control. So maybe you earn a bit extra, but can't enjoy spending it.
There's no easy way out. Passive investing is a retirement strategy/fixed income lifestyle. If you really want the big bucks you have to put in sweat equity. In which case you're better off growing a business of some kind. Sticking with what you know and love.
churros said:
Martin Armstrong. An economic forecaster who specializes in historical cycles.
https://www.armstrongeconomics.com/
Banker bastards tried to take him down.
https://en.wikipedia.org/wiki/Martin_A._Armstrong
The Right Frame
Chicken
Best Long term passive income in my experience has been real estate. You can argue that it is not truly "passive" because you have to continually select/screen tenants, manage the property,deal with repairs and maintenance etc, but long term the returns are worth it and it is considered passive income on tax return.
1. You get to use leverage which is key to juice returns. No where else in the financial marketplace can individuals get access to signficant amounts of cheap debt financing outside of real estate. Try pitching a business idea to a bank or even getting a loan to buy an existing company 99/100 times they will laugh at you (not before trying to sell you a "business account" to meet their monthly quotas).
2. Inflation--becomes your friend as a real estate investor. The value of property (over long periods) goes up while your mortgage payment never changes (taxes, HOA fees, insurance will go up). However you can easily offset this with raising the rental price for your property.
3. Time is your friend---as the years go buy the price of the property goes up, rental prices go up, your mortgage payment remains the same, and you will be sitting on capital gains. You will then be able to access the built up equity with credit lines from the bank.
Risks/hurdles to this investment
1. Need large amount of capital for initial down payment plus two years of verified tax returns and good credit.
2. Need large cushion of extra contingent capital to cover the mortgage payment when rental unit goes unoccupied, major repairs and maintenance pop out of nowhere or when your perfect tenant defaults (in Cali where I am they can stretch out the eviction process for over 6 months). During this time you are 100% on the hook for the mortgage payment which can ruin your entire life if you don't have extra capital.
3. Many more risks need to be considered than I can list here---
1. You get to use leverage which is key to juice returns. No where else in the financial marketplace can individuals get access to signficant amounts of cheap debt financing outside of real estate. Try pitching a business idea to a bank or even getting a loan to buy an existing company 99/100 times they will laugh at you (not before trying to sell you a "business account" to meet their monthly quotas).
2. Inflation--becomes your friend as a real estate investor. The value of property (over long periods) goes up while your mortgage payment never changes (taxes, HOA fees, insurance will go up). However you can easily offset this with raising the rental price for your property.
3. Time is your friend---as the years go buy the price of the property goes up, rental prices go up, your mortgage payment remains the same, and you will be sitting on capital gains. You will then be able to access the built up equity with credit lines from the bank.
Risks/hurdles to this investment
1. Need large amount of capital for initial down payment plus two years of verified tax returns and good credit.
2. Need large cushion of extra contingent capital to cover the mortgage payment when rental unit goes unoccupied, major repairs and maintenance pop out of nowhere or when your perfect tenant defaults (in Cali where I am they can stretch out the eviction process for over 6 months). During this time you are 100% on the hook for the mortgage payment which can ruin your entire life if you don't have extra capital.
3. Many more risks need to be considered than I can list here---
One way to make true passive income off of real estate is to do seller financing. This requires up front work and knowledge of real estate picking the right property in the right area. It also requires you to have lots of cash. I have done this with several properties and made 8% interest on each one. The key is to having a property that they can't destroy more than the down payment would cover if you repo the property. Although if the down payment is too high you wont sell it. This appeals to people who can't get a loan through a traditional bank for whatever reason. I've found that commercial properties are the best because not only are they harder to get loans on but the loans carry higher interest so it makes more sense for them to do seller financing. This varies from area to area of course but in my area commercial loan interest rates are about double of what residential are. The other advantage of doing seller financing is you can usually charge more than you could selling the property otherwise because you open up to more potential buyers who might only be able to buy a place willing to do seller financing. You get a better price buying the property because when paying cash for a property you can usually get a better deal.
Pete said:
As with any other investment, you must diversify. People think that they are clever when they are fully invested and keep no cash in reserve or, worse yet, max out their available leverage. If they are ultimately successful, it is just dumb luck market timing. People who fail to plan (for a worst case contingency), plan to fail. As an example, I read this just today:
I saw this article today and remembered this thread: "43 Best Passive Income Streams & Opportunities". It may provide some ideas for those with an interest in the topic. I am not affiliated in any way.
https://realpassiveincomeideas.com/43-best-passive-income-streams-opportunities/
https://realpassiveincomeideas.com/43-best-passive-income-streams-opportunities/
Sorry if this has been discussed, has anyone considered buying actual ATM's and placing them in various high traffic areas (assuming you can make acceptable arrangements with whomever)?
I’ve looked into ATM machines for bitcoin before and worked out some math.
At the end of the day its still comes down to a business operation, purchasing requires economy of scale, operations requires security & manpower. For conventional ATMs I think it will be hardpress to squeeze out margin in Asia unless you have contacts within the major banks.
Having said that, I’ve seen companies promising 18% annual returns by investing in these companies. Not sure which countries they place their ATM though since I’m not too interested in this as a business. If they tell you its guaranteed then 100% they are trying to cash out of their own business.
At the end of the day its still comes down to a business operation, purchasing requires economy of scale, operations requires security & manpower. For conventional ATMs I think it will be hardpress to squeeze out margin in Asia unless you have contacts within the major banks.
Having said that, I’ve seen companies promising 18% annual returns by investing in these companies. Not sure which countries they place their ATM though since I’m not too interested in this as a business. If they tell you its guaranteed then 100% they are trying to cash out of their own business.
jamaicabound
Pelican
Travesty said:
My experience has been the exact opposite. Lending Club for me has been a fucking joke. I've tried manually selecting loans, I've tried using their mixed portfolio, I've tried weighting things in different ways. I don't think my percentage has ever been above 6% and even then the way they display my earnings they aren't taking into account chargeoffs which have become numerous.