The Secret to Earning Passive Income

By Kristen Euretig, CFP®, Founder and Chief Planning Officer

Passive income sounds amazing, doesn’t it?  Make money passively, like while you’re sleeping or at the beach or eating brunch.  You don’t have to do anything – it just comes to you.  You can be passive.

The thing about passive income, and this is the hill I’ll die on,  is that it’s a load of horse$h1t.  Aside from the curious influencer corner known as “sleep streaming” where they literally make money while sleeping, there’s a lot of noise out there about the passive income fantasy that seems to convince people they’re doing it wrong.  

People refer to owning rental properties as a passive income stream.  Ask any landlord if renting out property is passive and I’m sure you’ll get an earful. Some people describe a side hustle as passive income, but if you’ve ever had one, you understand why it’s called a “side hustle.”

Do you know what real passive income looks like?  It’s being invested in the markets.  A mutual fund never needs a new boiler.  A bond never needs you to figure out how to pay estimated taxes on your pre tax income so you don’t have a nasty tax time surprise.  And they just do their thing while you do yours.  They don’t need you to check in on them – just meet quarterly or annually with a trusted advisor if you’re getting professional management (highly recommended).

Did you know that you can invest in real estate through the stock market?  There are funds and products called “real estate investment trusts” or “REITs” that allow you to benefit from real estate income without the hassle of squirrely tenants breaking their leases.

I think at the core of the passive income craze is a desire for people to earn more and build wealth faster and the funny thing is that you can do that with good old fashioned investing in the markets.  Apply for a free consultation to see how you can take advantage of truly passive investing. 

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