In financial terms, passive income describes money that a one-time investment continually generates, without requiring the investor to monitor or adjust his or her holdings. If you want to know about passive income investments in 2021, you came to the right place. In this video I will talk about top 5 passive income investments strategies that warrant a closer look in after crazy year of 2020. This list may be compatible for beginners as well.
DISCLAIMER Pls keep in mind that everything expressed in a video is my personal opinion provided for education and entertainment value only. I am not a professional financial advisor. All decisions should be done solely by you after own research. Please, always do your own research (it is worth it!). Also there are affiliate links in the description that allow you to find items and support the channel at no cost to you. Thank you for your support!
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Passive income is true freedom. It’s probably everbody’s dream and in fact it’s the one thing that differentiates wealthy people from non wealthy people. You either have to put your time or you have to put in your money. If you put in your time you could maybe start a business or start a youtube channel and these are all things that could turn into huge passive income streams. But I guarantee you’ll have to put a ton of time into it. The quickest to start making passive income today is by investing. And contrary to popular belief today it doesn’t take a ton of money to do it.
1. Real Estate The first way to start making passive income is to invest in real estate. It can be done in different ways. Despite fluctuations over the recent years, real estate persists as a preferred choice for investors looking to generate long-term returns. Those who don't want to manage rental properties can look to real estate investment trusts (REITs) instead. A REIT is basically a stock but it’s stock in a company whose business is specifically owning and operating real estate. REITs pay out 90% of their taxable income as dividends to investors.
2. Peer-to-Peer Lending The second way to make a passive income is participating in peer-to-peer lending. P2P programs generally have fewer barriers to entry than other types of investments. For example, investors can fund loans with investments as small as $25. While Title III of the Jumpstart Our Business Startups (JOBS) Act allows both accredited and non-accredited investors to invest through crowdfunding, each P2P platform has its own set of participation requirements. Have you got your first $25 to lend? Let me know in the comments.
3. Dividend Stocks Another simplest way of creating passive income is dividend stocks. As public companies generate profits, a portion of those earnings are siphoned off and funneled back to investors in the form of dividends. Investors can decide to pocket the cash or reinvest the money in additional shares. Dividend yields can vary significantly from one company to the next, and they can also fluctuate from year to year. Investors unsure about which dividend-paying stocks to choose should stick to the ones that fit the dividend aristocrat label, which means the company has at least a 25-year track record of paying out substantial dividends. I recently reviewed dividend stocks, that you might want to check out.
4. Index Funds The fourth way for passive income is investing in index funds. Index funds are mutual funds linked to a particular market index. These funds aim to mirror the performance of the underlying index they track and are passively managed. As an example there is the most index fund which tracks top 500 US public companies aka S&P500. And if you’ve invested $10,000 in this index 50 years ago now it would be more than $1,200.000 or so.
5. Selling information products Next strategy for passive income is establishing an information product, such as an e-book, or an audio or video course, then kicking back while cash rolls in from the sale of your product. Courses can be distributed and sold through various sites nowadays.
