Quote: (08-17-2013 12:06 AM)AntiTrace Wrote:
Like you said, passive means a wad a cash that your getting interest from. Which is my ultimate goal. 100k truly passive and I'll be happier than a pig in shit.
If you have to work for it, albeit maybe only a few hours a week, its not truly passive income.
Certainly, there are degrees of passivity, and if any one of us is able to sustain a 100k per year income on a few hours of work a week, then that would not be a bad thing. I would characterize that kind of work-level as largely passive. Even adjusting one’s portfolios in a stock investment may take a little bit of time (possibly on a weekly basis), but could still be characterized as largely passive income.
Quote: (08-17-2013 05:44 PM)fkexpat Wrote:
The average return in the stock market for the past 100 years has been 9.4%. 10% and especially 20% is above average. I'd say you're doing great if you're receiving a 20% return. 50-60% return isn't realistic on a consistent basis, unless you strike gold (your stock skyrockets for some reason).
I would not quibble with your characterization – except, if we put a time-frame on the investment, and when the market is doing very well, after a crash, it may be possible to receive 50-60% returns during short-periods. The last couple of years, even a large number of market index funds were returning 20-30%. Over the long-term however, we will be lucky to merely match or do a little bit better than the market averages. Generally, market timing (without inside information) does not pay off.
Quote: (08-25-2013 08:25 AM)playa_with_a_passport Wrote:
You don't really need a property manager unless we are talking about dozens of units or you live States away(a very bad idea). Also, you lose some tax benefits once you hire a property manager(Passive activity rules) If you are high wage earner those benefits can be significant.
If you are managing your own property, I would not call this kind of investment passive, and in your recent experiences, you may have merely gotten lucky in the event that you have not had to engage in too much work; however, if you are advertising and screening your tenants, this can also take time, and in the end, absent special circumstances, if you are managing your own properties, there is going to be a certain level of sweat work to maintain units occupied and cash flowing to your pockets.
Quote: (08-28-2013 10:12 PM)DrugAdvisor Wrote:
@YMG
All you need is the standard paper work filed, deposit a sum into the investment bank and you can start trading.
Upon depositing the cash with the bank, you can request the cash to be parked into the money markets, which yields DAILY paid interest of 2.xx% per annum. That means if u r still undecided on the trades you're gonna take, your money will still grow, albeit at a slow pace. The downside is this cash will take 2-3 days to clear. So if you got an emergency that requires immediate cash it won't help.
YMG, having a target to cash out is definitely a good thing. I made mistakes staying too long in a biz because I didn't set a amount/date to cash out. That's where millionaire fast track made me realize I was not starting something that I wanted deep down.
Some kind of foreign investment, such as the Malaysian market, sounds really good in the event that someone may want to diversify some of his investments outside of the USD market. Within the coming month, I expect to have about $60,000 that I would like to invest in such a vehicle, and currently, I am in the process of considering investment vehicles in which I could reliably receive between 5% and 10% returns…
I am thinking that $60,000 is not a large enough amount to involve a money manager, so finding my own investment vehicles would probably be the better route, and this Malaysian market vehicle sounds as if it could be a pretty good one. I may have to PM you as well, DrugAdvisor…. ?