According to financial planners and advisors, retired people could invest in Debt accrual funds for higher post-tax income. These funds are more useful to those retired people who are in the higher income tax bracket (20% and 30%). For those who are in the 10% tax bracket, and also those who do not have to pay any taxes, bank fixed deposits are equally good, they say.
Mining contributed $63 billion (3% of GDP) and employed 20.14 million people (5% of the workforce) in 2016. India's mining industry was the fourth-largest producer of minerals in the world by volume, and eighth-largest producer by value in 2009. In 2013, it mined and processed 89 minerals, of which four were fuel, three were atomic energy minerals, and 80 non-fuel. The government-owned public sector accounted for 68% of mineral production by volume in 2011–12.
The engineering industry of India includes its growing car, motorcycle and scooters industry, and productivity machinery such as tractors. India manufactured and assembled about 18 million passenger and utility vehicles in 2011, of which 2.3 million were exported. India is the largest producer and the largest market for tractors, accounting for 29% of global tractor production in 2013. India is the 12th-largest producer and 7th-largest consumer of machine tools.
Some good writing here! I am a realtor myself and frequently get in touch with clients that consider buying a realty estate a conservative of investing. I once heard of a transport company in Vienna, Austria, which focused their entire profit on buying eventually every house available in the downtown for about 80 years. That must be some of a passive income!
Whoah – I haven’t read an entire post this long in awhile. That’s how hooked I was. It took me 5 income streams before I became a Millionaire. I now have 11 and it’s fascinating to see which ones are now generating the highest ROI 5 years in. My side digital marketing business is by far my most profitable, but also requires the most of my time. I have finally started automating 4 of these streams (websites I bought) and it feels great to make money not doing anything – well I do have to make sure that my credit card doesn’t expire on my hosting account! I really like your blog – just found it on the Rockstar Forum. I’ve added it to my regular readers. Looks like your crushing Pinterest – where do you make your images?
In 2015, a total of US$68.91 billion was made in remittances to India from other countries, and a total of US$8.476 billion was made in remittances by foreign workers in India to their home countries. The UAE, the US, and Saudi Arabia were the top sources of remittances to India, while Bangladesh, Pakistan and Nepal were the top recipients of remittances from India. Remittances to India accounted for 3.32% of the country's GDP in 2015.
This is how the people who are in the 20% and 30% tax bracket can generate another stream of income by investing in accrual funds: The investor will invest in the fund and subsequently should also set up a systematic withdrawal plan (SWP) for the same scheme. The SWP will be set up in such a way that only the gains from the fund are transferred to the investor's bank account, at regular intervals, while the principal remains untouched. So in effect the investor enjoys a steady flow of regular income, but pays lower tax compared to if he had invested in bank fixed deposits. This is because as per tax rules, only the gains are taxed. While investing in accrual funds, the investment option should be growth and not dividend, financial planner and investors say.
Having discussed why it is important to have a second source of Income, let me now highlight some of the sources of a second income or second income ideas. A second source of Income typically means having regular income from a source other than your primary one. This means, if you belong to a salaried class, you might want an income from some other source and if you are from a business class, you might want an income from some other business. You can be as creative as it gets. Some good sources of Income are highlighted below:
"That's certainly true for entrepreneurs, but even for people who work inside a company, cultivating a side income stream of some sort — whether it's having an Etsy store on the side, or doing a little bit of coaching or having a workshop now and then, whatever it is, doing a little bit of paid speaking — having that sideline gives you additional protection against uncertainty and also has a lot of other benefits.
What I’m doing: My realistic goal is to have a blended annual return of 2x the risk free rate. With a current 5% hurdle, I am not paying down mortgages that cost less than 4%. Debt at 5% is a wash. My realistic blue sky scenario is a 3-4X rate of return over the risk free rate which can be achieved with property, stocks so far for the past five years, and certain private equity investments. Where I am dragging is my blended average CD interest rate of roughly 3% from an old CD coming due. I’ve rolled some money into a 12-month CD with CIT Bank at 2.5%. It’s the best rate I can find.
P.S. I also fail to understand your fascination with real estate. Granted we’ve had some impressive spikes along the way, especially with once in a life time bubble we just went through. But over the long term (see Case Shiller real estate chart for last 100 years ) real estate tends to just track inflation. Why would you sacrifice stock market returns for a vehicle that historically hasn’t shown a real return?
The bottom line is, it’s smart to have multiple income streams no matter who you are. Why? Because the more ways you can earn money without compromising your integrity, the better off you’ll be. And if you’re self-employed, having multiple income streams is almost essential. Not only will you enjoy a higher income, but you won’t go broke if one stream ends out of the blue.
One aspect you might want to add to your scoring is “inflation protection”. At one end, bonds and CDs generally pay a fixed nominal coupon that doesn’t rise with inflation. Stock dividends and Real estate rents (and underlying property value) tend to. Not reallly sure how P2P lending ranks- though I suppose the timeframes are fairly short (1 year or less?) and therefore the interest you receive takes into account the current risk free rate + a premium for your risk. Now that I think about it, P2P lending probably deserves a lower score in the activity column than bonds too (since you probably need to make new loans more often).
A good portion of my stock allocation is in growth stocks and structured notes that pay no dividends. The dividend income that comes from stocks is primarily from S&P 500 index exchange-traded funds. Although this is a passive-income report, as I'm still relatively young I'm more interested in building a large financial nut through principal appreciation rather than through dividend investing. As an entrepreneur, I can't help but have a growth mindset.
Indian economic policy after independence was influenced by the colonial experience, which was seen as exploitative by Indian leaders exposed to British social democracy and the planned economy of the Soviet Union. Domestic policy tended towards protectionism, with a strong emphasis on import substitution industrialisation, economic interventionism, a large government-run public sector, business regulation, and central planning, while trade and foreign investment policies were relatively liberal. Five-Year Plans of India resembled central planning in the Soviet Union. Steel, mining, machine tools, telecommunications, insurance, and power plants, among other industries, were effectively nationalised in the mid-1950s.
Investing in rental properties: Another form of real estate investment, rental investments (i.e. becoming a landlord) could steer you down the passive income path of steady monthly rent checks that you can use to pay off a mortgage loan on the rental property. After the mortgage is paid off, those monthly checks go right into your bank account -- potentially for years to come.
If you’re considering real estate for your portfolio, let me give you some advice: Don’t jump in without a ton of research. It’s not as easy as they make it look on shows like Flip or Flop. There’s a lot that goes into becoming a successful landlord or flipping houses for a profit. Plus, a lot can go wrong and your mistakes can eat up your profits quickly.
Some people take it automated well before the year is up. When it converts, it converts. If you target the right people and you're able to create the right message that appeals to your audience, you might just hit a home run. An automated webinar often involves the creation of a webinar funnel. That includes, not only the webinar, but also the email sequences, and possibly a self-liquidating offer, and maybe some done-for-your services and up-sells.
This is an interesting take and good advice for those who probably do not need to ever worry about becoming destitute. I’m sorry but too many of your options including your own list of income require quite a bit of initial investment/capital and these suggestions are useless to those living paycheck to paycheck. I’d like to see the average low to middle income household purchase additional property for rental, invest in their portfolio (if they can even start one), or even afford to have a vehicle or room to rent. Far too first world of a solution for the general public.
This is the best post I’ve seen on passive income streams. I’m similar to you in that I worked in IBanking for a few years but wanted out. My approach is a little different, instead of starting with the CD’s, I’m trying to build up my net worth with riskier asset classes such as stocks and real estate to get the benefit of compounding. Then, as I approach my retirement year goal, I’ll start moving them into CD and bond ladders. In theory at least, it’s best to have the highest net worth just before retirement, then convert them to risk free passive income. You’re method is more patient and probably more practical than mine. I guess I’m willing to take more risks.
1. I started with doing tuitions , even after I picked my first work. Being in IT, I always had 5 days a week schedule but tuition/coaching is a time-tested way to earn clean money. I was teaching Mathematics to class X people. And if your pupil do good, like what happened when I was teaching this lady (in 1995) whose parents have given up on her, she was a in a plush school and I don't know what worked, she got such good marks that they hunted me down for a big pack of sweets after her X board exam, then that is extremely rewarding. You can start from your home, do evening class then move to a rented place and so on. It is very tiring but as I said, noone would short-change a teacher.
Add Leverage (Mortgage) and you greatly increase the ROI especially from the perspective of using Rents (other peoples money) to pay down the mortgage and increase your equity in the property over time. At this point then yes price appreciation is secondary bonus and we have an arguement of how and why Real Estate can be better than Growth Stocks in some scenarios and for some investors.
40 Hour Work Week Active Income aerospace amazon Blogging budgeting College Compounding Interest Cubicle-Life Day Job Debt Engineering entrepreneurship Freelance Writing goals Hard Work Hawaii Incentives Investing Loyalty Lyft Money Motivation Networking Overtime Paid Time Off Passion Passive Income Paycheck to Paycheck Real Estate San Diego savings Second source of income Self-Employed side hustle Side Income social media Taxes Time Management Uber Unpaid Time Off Vacation Work Work from home xbottom
The long-term growth prospective of the Indian economy is positive due to its young population, corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India topped the World Bank's growth outlook for the first time in fiscal year 2015–16, during which the economy grew 7.6%. Despite previous reforms, economic growth is still significantly slowed by bureaucracy, poor infrastructure, and inflexible labor laws (especially the inability to lay off workers in a business slowdown).
Prime Minister Indira Gandhi nationalised 14 banks in 1969, followed by six others in 1980, and made it mandatory for banks to provide 40% of their net credit to priority sectors including agriculture, small-scale industry, retail trade and small business, to ensure that the banks fulfilled their social and developmental goals. Since then, the number of bank branches has increased from 8,260 in 1969 to 72,170 in 2007 and the population covered by a branch decreased from 63,800 to 15,000 during the same period. The total bank deposits increased from ₹59.1 billion (US$820 million) in 1970–71 to ₹38,309.22 billion (US$530 billion) in 2008–09. Despite an increase of rural branches – from 1,860 or 22% of the total in 1969 to 30,590 or 42% in 2007 – only 32,270 of 500,000 villages are served by a scheduled bank.
We have decided to invest in 2 ETFs, a multi asset allocation ETF (Fixed Inc, alts and div paying equities) and a preferred stock ETF. This will cover almost 45 percent of our deficit. We will be extremely diversified, can access the markets at a very low cost and the investments are liquid. On this pool of $, we have no plans to invade principal unless the investment grows by 20 percent, which we think is unlikely given the characteristics of the investments.
Lending Club is a platform where you can lend your money to other people. You’re the bank. Each note is only $25, so you can invest $1,000 and lend money to 40 people. There are many grades of loan (from safest to riskiest) and investors earn, on average, between 5% and 7% annualized returns. For more information, check out Investing and Making Money with Lending Club Peer-to-Peer Lending and my real money Lending Club Portfolio.
As the third-largest economy in the world in PPP terms, India has attracted foreign direct investment (FDI). During the year 2011, FDI inflow into India stood at $36.5 billion, 51.1% higher than the 2010 figure of $24.15 billion. India has strengths in telecommunication, information technology and other significant areas such as auto components, chemicals, apparels, pharmaceuticals, and jewellery. Despite a surge in foreign investments, rigid FDI policies were a significant hindrance. Over time, India has adopted a number of FDI reforms. India has a large pool of skilled managerial and technical expertise. The size of the middle-class population stands at 300 million and represents a growing consumer market.
Best financial planning is when we prepare for Bad Times during Good Times. Sounds quite philosophical but unfortunately it is harsh reality of today. Second Income is a back up during bad times or we can say its a blessing in disguise. Second Income should be planned during Good Times. Though it is not easy to generate second income source but it is not impossible also. Let’s find out 5 Ways to Create Second Income source.
In early modern Europe, there was significant demand for products from Mughal India, particularly cotton textiles, as well as goods such as spices, peppers, indigo, silks, and saltpeter (for use in munitions). European fashion, for example, became increasingly dependent on Mughal Indian textiles and silks. From the late 17th century to the early 18th century, Mughal India accounted for 95% of British imports from Asia, and the Bengal Subah province alone accounted for 40% of Dutch imports from Asia. In contrast, there was very little demand for European goods in Mughal India, which was largely self-sufficient. Indian goods, especially those from Bengal, were also exported in large quantities to other Asian markets, such as Indonesia and Japan. At the time, Mughal Bengal was the most important center of cotton textile production and shipbuilding.
Dividends made sense 40 years ago as a relatively simple rule of thumb, but after all the work done by John Bogle with index investing, and academics with Monte Carlo sims and the 4% rule, dividend investing just isn’t the simplest, cleanest way to invest or receive passive income anymore. It’s actually significantly more risky compared to index investing, because dividend companies are a much smaller share of the total global economy compared to the broader indices.
The impact of British rule on India's economy is a controversial topic. Leaders of the Indian independence movement and economic historians have blamed colonial rule for the dismal state of India's economy in its aftermath and argued that financial strength required for industrial development in Britain was derived from the wealth taken from India. At the same time, right-wing historians have countered that India's low economic performance was due to various sectors being in a state of growth and decline due to changes brought in by colonialism and a world that was moving towards industrialisation and economic integration.
So one thing I have to disagree with after having done hours and hours of research from Multiple CPA’s is “Dividends – 21% (passive)”. Thats actually not right. Thats actually “active”. I actually paid 2 different CPA’s to do research on this topic. One of them I paid 500 dollars to actually dig out the IRS tax code and “prove” it. If you are active in a business and the business pays you dividends its still active income (not passive).