My 5 Current and 3 Future Passive Income Streams– TOP Credit Cards– Financial Calculators– Jobs– About– My 5 Current and 3 Future Passive Income Streams
Recently, a reader reached out to share how his taxes were affected by his various passive income streams. It turns out, to no surprise, that the taxes on those income sources are much lower than those levied on his earned income.
Although my passive income streams have grown steadily over the years, I haven’t put too much thought into their role in either my taxes or my standard of living until recently.
What is Passive Income?In other words, there may be an active component, but your returns are not fully dependent on how much work you do. Typically, the work is done upfront, and the rewards are reaped later, often with minimal ongoing efforts.
#1 InterestBanks are not paying much in interest, but there are several online banks with a solid reputation paying 1% interest or more. I am not a huge fan of sitting on cash, but for various reasons, I’ve been doing a lot of it lately.
#2 DividendsI’ve never been a big fan of dividends. When I wrote about the only individual stock I held, I highlighted the fact that it pays no dividend and why that’s a good thing. I’ve demonstrated how selling shares of a company is better than receiving a dividend from it..