Post: #26

(08-16-2013 09:10 PM)Ensam Wrote:  Tutor. You can easily make $1500/month. Charge $50/hr, get six clients for one hour a week. Done.

This. I had a friend a couple years ago who tutored calculus to high school students on the weekends. Basically most part-time tutors (I'm guessing women usually) can't handle calculus because it's too difficult for them. So he could basically charge $100/hour and set his own rules, like they had to come to his place, etc.

Post: #27

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Why is this thread called PASSIVE income?

I feel like the only truly passive income that exists is having a giant wad of money that gives you returns through your investments.

Even internet marketers and bloggers have to continue updating their sites and relaunching products or putting out new products. It's a grind.

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Post: #28

(08-16-2013 11:13 PM)youngmobileglobal Wrote:  -

Why is this thread called PASSIVE income?

I feel like the only truly passive income that exists is having a giant wad of money that gives you returns through your investments.

Even internet marketers and bloggers have to continue updating their sites and relaunching products or putting out new products. It's a grind.

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Because the majority of people confuse "passive income" with "extra income"

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.

But thats really just semantics.

Post: #29

@paninaro: That's something I could do. Were there any legal/licensing/background-check hoops your friend had to jump through?

Post: #30

(08-16-2013 11:13 PM)youngmobileglobal Wrote:  -

Why is this thread called PASSIVE income?

I feel like the only truly passive income that exists is having a giant wad of money that gives you returns through your investments.

Even internet marketers and bloggers have to continue updating their sites and relaunching products or putting out new products. It's a grind.

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This is pretty much it right here. Your goal in life is to cover your living/life expenses as fast as possible with a recurring INVESTMENT stream.

Thats the only financial independence there is. Running a website is still work. A thread for "online jobs" would be interesting but tbh thats pretty much internet marketing, blogs, forums and other regular online based companies.

Post: #31

(08-17-2013 12:42 AM)JackDavey Wrote:  @paninaro: That's something I could do. Were there any legal/licensing/background-check hoops your friend had to jump through?

To be a calculus tutor? Nope, just "I went to MIT" was enough for all the helicopter parents

I think to get clients, he'd just call up the calculus teachers at the local high school and mention he's available and they'd send referrals when frantic parents called because Little Johnny got a C. Those teachers also have a vested interested in their students doing well (raises school's AP calc passing rate stats).

Post: #32

I have some 15k dollars in stocks. I'm new at investing and I don't get the results I want. I only made 10-20% return on some stocks. It would be really awesome if I had 50-60% return on my investment. Anybody else active on the stockmarket here?

Post: #33

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). To get those rates of return, you'll have to take on additional risk, such as through penny stocks. I highly recommend against penny stocks.

Post: #34

(08-16-2013 11:13 PM)youngmobileglobal Wrote:  -

Why is this thread called PASSIVE income?

I feel like the only truly passive income that exists is having a giant wad of money that gives you returns through your investments.

Even internet marketers and bloggers have to continue updating their sites and relaunching products or putting out new products. It's a grind.

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You can also add rental property to the mix.

Post: #35

^ this is only if you have a strong property manager.

Cash on cash returns go to about 7% with that model which isn't all that bad though.

Post: #36

(08-18-2013 07:59 PM)WestCoast Wrote:  ^ this is only if you have a strong property manager.

Cash on cash returns go to about 7% with that model which isn't all that bad though.

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.

Sometimes I even forget that I have tenants...

It has been my experience that I only actively get involved whenever a tenant moves out or something breaks which is not often. Tenant screening is what's going to make you or break out specially in tenant friendly places like NYC. You can delegate snow cleaning and trash separation to one of the tenants if you give them a small discount on the rent. You'll be surprised what people are willing to do for a fairly priced apartment in NYC. I have a friend who owns a building in the Bronx and he told me that it is not uncommon for chicks to offer blow jobs during open houses if he would rent to them(very very bad idea).

Post: #37

(08-25-2013 08:25 AM)playa_with_a_passport Wrote:  You'll be surprised what people are willing to do for a fairly priced apartment in NYC. I have a friend who owns a building in the Bronx and he told me that it is not uncommon for chicks to offer blow jobs during open houses if he would rent to them(very very bad idea).

God is there anything a woman won't do to get her way? The answer is no, but geeesh.

Post: #38

Actually. To those who are earning in USD, looking to retire in SEA, I can suggest building a portfolio of dividend paying stocks either in Singapore, Hong Kong (but they are as susceptible to the US market crashes as, the US market itself).

I myself do it between Malaysian stocks and US stocks. Not a big fry per se. But I do believe USD 300k @ 5% nett returns a way to fund your trips around SEA already and it's easy to acheive that (yearly returns).

The millionaire fastlane gives a really good example of how to acheive financial independence, and I would recommend that book to OP too because having a PhD does squat in teaching you how to set yourself up for passive income streams.

P/S: thanks to YMG For introducing that book. It actually made me realize I was closer to ,y goal than I previously thought

Post: #39

(08-26-2013 08:43 AM)DrugAdvisor Wrote:  Actually. To those who are earning in USD, looking to retire in SEA, I can suggest building a portfolio of dividend paying stocks either in Singapore, Hong Kong (but they are as susceptible to the US market crashes as, the US market itself).

I myself do it between Malaysian stocks and US stocks. Not a big fry per se. But I do believe USD 300k @ 5% nett returns a way to fund your trips around SEA already and it's easy to acheive that (yearly returns).

The millionaire fastlane gives a really good example of how to acheive financial independence, and I would recommend that book to OP too because having a PhD does squat in teaching you how to set yourself up for passive income streams.

P/S: thanks to YMG For introducing that book. It actually made me realize I was closer to ,y goal than I previously thought

Yeah Millionaire Fastlane is great.

More information on "the money system" part of the fastlane.

This is very interesting. I take it you are mostly KL based?

Are you an expat or local there?

Thanks for your information.

You are averaging 5% returns on Malaysia and US stocks?

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Post: #40

@YMG:

I'm based in Penang. Running conventional biz, trying to develop it Online for a little extra mobility for traveling.

No. Malaysian stocks are a little more than that at 6-7% range with little to no "micromanagement". basically plain blue chips that won't go out of fashion, solid yielding companies as Malaysia is a relatively untapped market due to political influence (keeping the big boys out, hence undervalued).

The "money system" as with the millionaire fastlane is a good way to start, but the US stocks are sometimes too volatile to my liking, so my perception is that writing covered calls would reduce the risk a little by putting cash regularly (writing covered calls yields cash income, reducing exposure to volatility) into your account.

YMG: do u trade shares, stocks etc?

Post: #41

(08-27-2013 08:46 AM)DrugAdvisor Wrote:  @YMG:

I'm based in Penang. Running conventional biz, trying to develop it Online for a little extra mobility for traveling.

No. Malaysian stocks are a little more than that at 6-7% range with little to no "micromanagement". basically plain blue chips that won't go out of fashion, solid yielding companies as Malaysia is a relatively untapped market due to political influence (keeping the big boys out, hence undervalued).

The "money system" as with the millionaire fastlane is a good way to start, but the US stocks are sometimes too volatile to my liking, so my perception is that writing covered calls would reduce the risk a little by putting cash regularly (writing covered calls yields cash income, reducing exposure to volatility) into your account.

YMG: do u trade shares, stocks etc?

Nice. How do you like Penang?

No I do not trade shares/stocks (yet).

I am at a stage where I am working on a startup and gunning for an acquisition within 2-4 years. I'm researching and learning about investments so that once I do have the wad of cash I can use it wisely.

I need to have a big wad of cash to invest/trade first.

What would be required for an expat to trade Malay stocks?

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Post: #42

@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.

Post: #43

^^
Do you know of any MMA that are paying 2%? I'd move to move my money there. The highest I could find was 1% APY with a 10k minimum balance.

Post: #44

@Ensam

Where r u converting your money from?

The ones I mentioned are all Malaysian accounts and are up to date data.

If you are serious about setting one up to trade Malaysian shares feel free to PM. If you just want to leave the Cash in money markets you can check out the investment banks here (try OSK investment bank, or Kenanga investment bank, both which me and my company are using).

Post: #45

(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.

(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.

(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.

(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…. ?

Post: #46

@JayJuanGee

Sure. Will assit in anyway I can. Feel free to PM so we can discuss this off the public forum.

Post: #47

Yeah, internet stuff isn't really passive income, allthough the truth is that I could stop working today and probably have a decent income for 6-12 months anyway.

But I am very interested in getting rental properties. Just seems like prices are too high for buying new everywhere so what do you do?

Post: #48

OP, if you have the skills to do math tutoring, maybe you can shoot a series of video lessons and sell those, while offering one-on-one help for additional money. That would be more passive.

There's already some stuff like this on the market, but maybe you can find a niche (trigonometry for trannies) or something.