Income Stream

Hello, recently had conversation with a retired family member who said he accumulated a lot of wealth via investing but wished he had more income stream. He was reluctantly buying an annuity and also had a utility stock dividend that he was receiving. He had invested his whole life and built a massive amount of wealth but didn't have a good chunk coming via income stream. This got me thinking...

For the TIP I wanted to ask what you do for passive income? I have no interest in making a webpage for passive income. I don't want to quit my day job so I want to know what YOU do for passive income.

I reinvest my dividends so that is not an option. I am saving for retirement and buying quality stocks at a reasonable price. However, while I sit around and wait for next crash I need to build a stream of income.

This got me thinking should I buy my own small business and let someone manage it or even get into rental properties?
I Love stocks and would rather invest but it's not providing me a steam of income but rather it is building my wealth.

Comments

  • edited July 17
    Hi @packerhawk ,

    With liquid stocks you can get the income stream you want by selling your stocks. Dividends is an income stream. You say that you reinvest dividends so that's not an option, but why do you then want an income stream? You don't spend the income stream you already have...

    Stocks and other investments <b class="Bold">is</b> passive income. It's actually the most passive income you can get :smile:" alt=":smile:" height="20" />

    What I currently do to make passive income: Work and invest 2/3 of the salary.
  • Thanks Liberty, the only reason I don't spend the income have coming now is I like to compound the dividends and don't want to rely on anything that can get cut in dow turn. I am 34 so compounding dividend is probably wiser long term. I don't want to have to sell stocks bc that's limited to what I already have.

    I did see a REIT like "O" which might be better than an investment property. It pays dividend monthly and held up well over 08 housing crisis.
    I think rising rates might hurt them though
  • Yeah, it's wise to compound dividends, but then you don't need an income stream? If you don't spend the income stream you already have, why do you need another? When you don't want to spend the dividends anyways, does it then matter if it pays dividends or not? The total return will the same.
  • edited July 19
    why not? I'm referring to income stream from non-stock type investments. My dividend checks definitely wouldn't be enough to live on at 34 years old. I want to have a day job and set another income stream of nontraditional business type stocks.

    This is why I asked what the TIP community does for Passive income...beyond shares in divined companies. Yes I can buy stock and let it grow but in market like this where growth is getting riskier as PE get out of control I'd also like to set up a paycheck that I can count on outside of my employer. I.e. Rental property, silent investor owner, buy franchise, buy a business for sale, a network of gum ball machines;)
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