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Message: <blockquote data-quote="Travel Museums" data-source="post: 954545" data-attributes="member: 11817">Why do you want passive income? Are you planning to travel and stay disconnected until its tax time? That's what I've done. So I keep it really really simple. 3-5 index etf funds and some dividend blue chips. My time is too valuable to waste it micromanaging. Even experts rarely beat these funds. None do it consistently. If you're not going to do that (and you're goals allow) you might want to take on more risk. I assume you're asking means you have little capital and experience. Therefore you should pay attention to your money for a few years anyway. And to be honest how much valuable is your time really? You probably have those few extra hours each week if you stop fooling around online. I've hit gold while abroad by touching base online. There's apps for everything. It's a push of a few buttons really. Just dont game yourself on market trends instead of concentrating on rock solid value.  I monitor any new investment. You don't just plunk money down and walk away. Even if you buy the top 100 global brands or an S&P index fund. If it's a new investment, broker, etc you monitor it. Example. Schwab ran a marketing ad saying $500 bonus* for funding a brokerage account. *New customer only, graded $50 per $10k up to $500. Maybe its ongoing? You may want to check. So I plunk $100,000 into a bunch of new brokerage accounts. I'm not a new customer but these are new accounts. I call Schwab and spend an hour on the phone bullshitting with a greenhorn reading a script about how I'll get the $500 for funding the accounts even if I don't make a single trade. Thank you! Record name, date, time of call. A few months later no bonuses. So I call and email and escalate until it's verified that my call took place BUT I was given bad info. But they still have to honor that or I can sue for way more. I don't even have to mention this. I know it. They know it. And boom the bonuses hit my account. Fucking love Schwab. They just lowered their trades to $6. Make a call and get the right person they'll even give you a code to let you trade vanguard etfs at that price (not really worth it for more than a 1-2 funds that vanguard has an edge with; which is why Schwab will allow this in order to keep you on their ship). Risk can give a higher return but the volalitility requires attention or you have bigger losses. If it's a market downturn, war, whatever then even your attention won't do much. So moderate to high risk investments are not passive. Therefore you want low risk investments. Blue Chip Dividends and ETF index funds are the only two I'd invest in. They probably aren't going to lose value in the long run. An exception might be if you have a trusted friend or family member who can manage the risk jointly. Not FOR you, but JOINTLY. That way their interests are completely aligned with yours. But you need to trust them with your financial affairs completely. This would be a parent, sibling, spouse, lifelong friend. Even then people get fucked over. The idea of investing in huge blue chips (regardless of dividends) is that they are doing all the work for you. They have thousands of in house people monitoring trends, markets, lobbying politicians, even writing the actual laws to make sure there products/services continue to have dependable and inherent value. We are addicted to oil, telecoms, most global consumable products. One thing I will not do is invest in emerging markets. Not even other industrialized countries if I can help it. I don't want to spend my time in Japan worrying about a nuclear submarine contract or the NIKKEI. I want to hanami and make Japanese girls squeak during sex. But the real problem is I'm not nearly as familiar with these economies as the US where I grew up. And even China lacks the brawn to make sure geopolitics ALWAYS align with their economic interests. Your tax dollars are paying for the US industrial complex to chug along shrugging off schmuck dictators and derailing outside foreign trade treaties that try to circumvent our interests. So invest in the USA. The only thing you MAY want to do is buy a slice of Paraguay or whatever country the bushes quietly bought up. I don't follow that shit. Was it Uruguay? I don't believe in zombie apocalypses. Diversify passively. A company like Coca Cola was also selling 99 year bonds but the return is lower than owning stock. Corporate, government, state, municipal bonds are a nice diversification that runs inverse to other market trends. Low risk, low return, very passive. Just don't invest in the wrong state or city. Was it Detroit that defaulted? I think a bunch of rust belt cities did. Again, I refuse to follow that news. It's serious stuff that puts hard working people's lives at risk. But from my passive investment strategy it's white noise. In 2008-2009 I lived in a van and ate free samples at Costco. I'm not worried about making lifestyle meet my passive income. I'm not a tinder tranny who thinks it's all five star hotels with no work. I understand that by being "lazy" I may need to live in a third world slum every winter. Whatever.  There's also weird bond rules that can make the taxes and accounting problematic depending on where you claim residency. It should be FL, give yourself a ten percent raise by eliminating state income tax. You also only need a new DL every 10 years. If your grandparents live there already you don't even need to own the property. Plus no state inheritance tax if I remember right...When interest rates were high it was possible to lock in a very good medium term rate (5-10 years). But your money is locked up and early withdrawal has huge penalties. Passive but not liquid. An ETF index fund can be sold like a stock. A blue chip stock of course can be too. Fairly liquid unless you need to skip town overnight.  This is random thoughts off the top of my head...A lot of idiot rich people pay a wealth manager 1-2% to do ham up the explanation of these simple transactions. These investors are often businessmen who know one field like selling mattresses and are uncomfortable dealing with the broader market. So they go passive to avoid the stress. That's a passive move, but the huge loss of income isn't worth it. Some people need to have a guy in a suit in an office where they can sit down to make decisions; someone to cry to when the market fluctuates (he'll hold your hand and tell you to stick it out or even invest more!). I guess that's better than not being in the market. Even if some of these guys make their profit off your annual return and not the transactions it's still a racket in my opinion. So yeah basically blue chips, bc divdend stocks, index funds, CD if you have extra cash and lock in a good interest rate (>5% haven't seen that in how long? I stopped looking), hmm what am I forgetting...Oh yeah you can buy insurance pretty cheap. There's is all kinds. Shit happens and when it does this will cover your ass. Some policies like private injury/unemployment insurance may continue to pay out for life. I know healthy young guys who got cheap policies through unions or the like never thinking they'd blow their back out. Then it happens and they're unemployable with chronic pain, but getting a check every month for life that covers their living expenses. That's a passive investment way too many people overlook because you're essentially betting against yourself. Shit happens. Be ready to collect if bad things happen to your body. Totally passive.</blockquote>

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