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Old 01-15-2020, 08:21 AM
 
993 posts, read 421,334 times
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People looking for great passive income need to remember two words: Bernie Madoff.
and three more words: No Free Lunch
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Old 01-16-2020, 01:48 AM
 
Location: VA, IL, FL, SD, TN, NC, SC
1,182 posts, read 328,541 times
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The most available, proven, and reliable method I know of to create passive income is to take your active income and invest it, so eventually you can retire and live off the passive income.

It takes effort and planning, isn't sexy, but is rather bullet proof when compared to the alternatives. Which is to say if the stock market crashes, well it will likely recover, leveraged real estate may or may not, a small business may not survive a prolonged down turn. Hence, the boring old bromide of saving and investing. If you put effort into it, you can achieve the desired end result in fairly short order.

The key to getting there in a reasonable time frame is to build a lifestyle you truly enjoy in a cost effective manner. That will greatly reduce your time to critical mass. Note, I said a lifestyle you truly enjoy, which is an exercise in finding that which you truly value and then in terms of objective finding that which you care far less about and economizing in those areas.

It took me 25 years to get to 78 times expenses in standard securities investments. That is a chunk of time. However note my four children are all targeting being able to retire by the age of 40. They are targeting have 50 times yearly expenses by age 40, which commonly is considered a perpetual withdraw rate. Not only are the on track, each one has vastly exceeded their goal, hence they may be able to retire with a 100% passive income stream before the age of 40.

There are other ways. but the above is the safest and most reliable I know of, and note, it is what I encouraged my own children to do.
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Old 01-16-2020, 06:28 AM
 
1,085 posts, read 675,615 times
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Closed end funds from Pimco. Taxable ones pay around a 9% yield like PFN. Muni’s pay around 4.4% like PMX or PMF.
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