23 ms·

It's very easy to get passive income. Just buy high dividend mutual funds. 100k in the market should net you 4-12k per year.

volkk 9y ago
ah yeah, the good ol' 100k i have lying around should finally have some use for me!
- oblio 9y ago
  Step 1 to become rich: already be rich! :)
- graton 9y ago
  Spend less, save more :) http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/ http://www.mrmoneymustache.com/2012/01/13/the-shockingly-sim...
- deleted 9y ago
  [deleted]
- ggregoire 9y ago
  You don't need 100k to open one.
- sn9 9y ago
  Compound interest is a powerful thing, especially if you sock away at least 10% of your income into index funds with every pay check.
FussyZeus 9y ago
Pretty sure if I had 100k it would already be invested, not just growing mold in my mattress.
grondilu 9y ago
I have about 50k€ on European and US stock markets. Amazingly enough, that only payed me 1128€ (after tax [I just checked my income tax form]) in dividends last year. I guess I suck at picking high-return stocks.
- Cymen 9y ago
  Are you intentionally picking dividend-focused stocks though? That is a key aspect of it if you want dividends. Most stocks are not focused as much on dividends (presumably, people buy them for the potential increased value of the stock over time instead of potential dividend payments).
  - grondilu 9y ago
    > Are you intentionally picking dividend-focused stocks though? I used to when I started, but I don't anymore. Now I just buy stocks of companies I like. Lately for instance, I bought some NVDIA shares because I like what they do. Also last year I realized I didn't own any AMZN share and I thought that was not right, without even considering the fact that they don't pay any dividend at all. Same for Netflix or Cray or Tesla. In truth, my mindset is more of a collector than an investor :P
- ggregoire 9y ago
  Have you look to professionally managed portfolios?
  - grondilu 9y ago
    Well, I don't trust professionally managed products (I'm in France as well btw) for various reasons. Basically I think in the long run it's better to manage your portfolio yourself. I'm sure I could get a better return if I was putting more effort into it, but I'm lazy so I don't mind. Also, at least if I don't earn much I only have myself to blame.
    - deleted 9y ago
      [deleted]
erik14th 9y ago
but if you're not reinvesting your passive will shrink over time due to inflation(I'm not sure about US but here in Brazil the dividends are subtracted from the stock valuation), so even then it requires some kind of maintenance. Capitalism is inherently competitive, if some way to generate capital is too easy it will become hard quite fast due to competition. If you can still make some money out of investing is because most people don't have the money or education to invest.
- grondilu 9y ago
  > (I'm not sure about US but here in Brazil the dividends are subtracted from the stock valuation) What is that about?? Usually the market prices the dividend removal, but that only lasts so long. At any point during the year the market prices it back, in anticipation of the next dividend.
  - loco5niner 9y ago
    I'm also very curious about this. Did some research, and got no answers...
  - erik14th 9y ago
    in Brazil it's actually subtracted, if your stock is worth a dollar and you receive a cent of dividend the stock will be priced at 99 cents. Like, it's as if the dividend money you receive is actually a part of the stock you own.
- loco5niner 9y ago
  My 401(k) automatically reinvents my dividends. > if some way to generate capital is too easy it will become hard quite fast due to competition. For the general population, saving money to invest is not easy.
m52go 9y ago
Along with that kind of passive income comes passive risk (i.e., risk you have zero control over). Not saying you're wrong, but it's something to keep in mind based on your goals.

volkk 9y ago

ah yeah, the good ol' 100k i have lying around should finally have some use for me!

oblio 9y ago
Step 1 to become rich: already be rich! :)
graton 9y ago
Spend less, save more :) http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/ http://www.mrmoneymustache.com/2012/01/13/the-shockingly-sim...
deleted 9y ago
[deleted]
ggregoire 9y ago
You don't need 100k to open one.
sn9 9y ago
Compound interest is a powerful thing, especially if you sock away at least 10% of your income into index funds with every pay check.

FussyZeus 9y ago

Pretty sure if I had 100k it would already be invested, not just growing mold in my mattress.

grondilu 9y ago

I have about 50k€ on European and US stock markets. Amazingly enough, that only payed me 1128€ (after tax [I just checked my income tax form]) in dividends last year. I guess I suck at picking high-return stocks.

Cymen 9y ago
Are you intentionally picking dividend-focused stocks though? That is a key aspect of it if you want dividends. Most stocks are not focused as much on dividends (presumably, people buy them for the potential increased value of the stock over time instead of potential dividend payments).
- grondilu 9y ago
  > Are you intentionally picking dividend-focused stocks though? I used to when I started, but I don't anymore. Now I just buy stocks of companies I like. Lately for instance, I bought some NVDIA shares because I like what they do. Also last year I realized I didn't own any AMZN share and I thought that was not right, without even considering the fact that they don't pay any dividend at all. Same for Netflix or Cray or Tesla. In truth, my mindset is more of a collector than an investor :P
ggregoire 9y ago
Have you look to professionally managed portfolios?
- grondilu 9y ago
  Well, I don't trust professionally managed products (I'm in France as well btw) for various reasons. Basically I think in the long run it's better to manage your portfolio yourself. I'm sure I could get a better return if I was putting more effort into it, but I'm lazy so I don't mind. Also, at least if I don't earn much I only have myself to blame.
  - deleted 9y ago
    [deleted]

erik14th 9y ago

but if you're not reinvesting your passive will shrink over time due to inflation(I'm not sure about US but here in Brazil the dividends are subtracted from the stock valuation), so even then it requires some kind of maintenance. Capitalism is inherently competitive, if some way to generate capital is too easy it will become hard quite fast due to competition. If you can still make some money out of investing is because most people don't have the money or education to invest.

grondilu 9y ago
> (I'm not sure about US but here in Brazil the dividends are subtracted from the stock valuation) What is that about?? Usually the market prices the dividend removal, but that only lasts so long. At any point during the year the market prices it back, in anticipation of the next dividend.
- loco5niner 9y ago
  I'm also very curious about this. Did some research, and got no answers...
- erik14th 9y ago
  in Brazil it's actually subtracted, if your stock is worth a dollar and you receive a cent of dividend the stock will be priced at 99 cents. Like, it's as if the dividend money you receive is actually a part of the stock you own.
loco5niner 9y ago
My 401(k) automatically reinvents my dividends. > if some way to generate capital is too easy it will become hard quite fast due to competition. For the general population, saving money to invest is not easy.

m52go 9y ago

Along with that kind of passive income comes passive risk (i.e., risk you have zero control over). Not saying you're wrong, but it's something to keep in mind based on your goals.