Author Topic: A way to achieve passive income in 10 years?  (Read 2304 times)

coderage9100

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A way to achieve passive income in 10 years?
« on: February 26, 2019, 01:54:45 PM »
Hello!

I have a 10 year plan that I'm hoping to put in place, but need some advice on a couple things.  This will sound like a fantasy, but it's just the goal regardless if it's a realistic one or not.  So, kinda humor me on it if you will.

Short version: How much money do I need to start with to have passive income and be a 6 figure couch potato within 10 years?

Long version: I've been looking into several venues.  Stock, bonds, CDs, peer sharing, cryptocurrency, real estate (both residential and commercial), land flipping, and a few others.  I've put a lot of thought into it, but I'm unsure which ones to pursue first and how much money to save/procure in order to pursue these investments.

Not counting the time it takes to actually save the money needed to start things like this, how much would be recommend I actually start with before following through with these investments?  And which investments are better to start with first?  I know investments have risk, but which would have lower risk vs return?  And what order should I execute these investments when laying out a 10 year plan?  And are there any other venues that would be worth looking into?

Any links to articles or resources you guys know about would also be much appreciated.

Thank you for your time!

J Boogie

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Re: A way to achieve passive income in 10 years?
« Reply #1 on: February 26, 2019, 02:37:53 PM »
Dude, it's like MMM's most famous article. The shockingly simple math of early retirement.

You can retire in 10 years if your savings rate enables it. Doesn't matter all that much what you invest in. If you're considering crypto, then I'd say just put it in a total market index fund and, as buffet says, get back to work.

If your income is high enough and your expenses are and stay low enough, you can do it in 10 years. But that's a pretty big if.

DeniseNJ

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Re: A way to achieve passive income in 10 years?
« Reply #2 on: February 26, 2019, 03:19:46 PM »
Short answer: 65% of your income. 

ChpBstrd

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Re: A way to achieve passive income in 10 years?
« Reply #3 on: February 26, 2019, 03:25:43 PM »
My first question would be have you invested in yourself up to the point there are no further marginal gains to be had?

A degree, certification, or other qualifying accreditation might be the difference in being able to save 40% of your income and being able to save 70%. To put it more concretely, if you are going to be working for the next 10 years, it will be a lot easier and faster to earn the required passive investments earning $80k than it will be earning $40k.

To be a minimum six-figure couch potato drawing $100k/y from a passive portfolio, you'll need about $2.5M. To save up $2.5M in 10 years you'll need a high-paying, high-stress career and years of preparation (e.g. doctor, airline captain, or corporate officer earning $200k/year) OTOH, if you can be happy on less, a relatively frugal lifestyle and normal career will get you there.

Beware of miracle investment products like crowdfunding, cryptocoins, flipping schemes, and MLM schemes. There are lots of desperate people looking for a free lunch and therefore an ecosystem exists for "alternative" investments. Rental properties are an investment business that can yield an ROI that starts low and hopefully increases over time, but I would not call them a passive couch potato option.

Jessica King

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Re: A way to achieve passive income in 10 years?
« Reply #4 on: March 04, 2019, 02:52:06 AM »
Hello!

I have a 10 year plan that I'm hoping to put in place, but need some advice on a couple things.  This will sound like a fantasy, but it's just the goal regardless if it's a realistic one or not.  So, kinda humor me on it if you will.

Short version: How much money do I need to start with to have passive income and be a 6 figure couch potato within 10 years?

Long version: I've been looking into several venues.  Stock, bonds, CDs, peer sharing, cryptocurrency, real estate (both residential and commercial), land flipping, and a few others.  I've put a lot of thought into it, but I'm unsure which ones to pursue first and how much money to save/procure in order to pursue these investments.

Not counting the time it takes to actually save the money needed to start things like this, how much would be recommend I actually start with before following through with these investments?  And which investments are better to start with first?  I know investments have risk, but which would have lower risk vs return?  And what order should I execute these investments when laying out a 10 year plan?  And are there any other venues that would be worth looking into?

Any links to articles or resources you guys know about would also be much appreciated.

Thank you for your time!

This is definitely a good plan! Have you thought about property crowdfunding? I think it`s a great way to reduce the risks because you can invest a small amount of money in different projects and enjoy passive income which will accumulate with time. For example, you diversify your portfolio and invest 1000 euros in 10 different projects, when one does not work out well, you still have nine backups. It`s just that cryptocurrency has too much volatility, I prefer something less risky and more stable such as real estate.

MrThatsDifferent

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Re: A way to achieve passive income in 10 years?
« Reply #5 on: March 04, 2019, 06:33:07 AM »
ChPbastrd lays it out perfectly although, tbh, I have a tough time believing that anyone striving for couch potato 6 figure income in 10 years has the drive, focus, skills and passion to make that happen. It seems like a lazy wish for a hard earned objective to just lead a lazy life. Power to you though if you can pull it off. Make sure to write a book if you do, guaranteed best seller.

talltexan

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Re: A way to achieve passive income in 10 years?
« Reply #6 on: March 04, 2019, 12:00:31 PM »
Ideally you'd be earning $300,000/year and investing 2/3 of it into VTSAX.

If you don't think you can get to that level of salary quickly, figure out how to build a business.

Many people here have found that they need much less income to retire comfortably. The average household in the US lives on about $54,000/year, and that includes housing.

FIRE@50

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Re: A way to achieve passive income in 10 years?
« Reply #7 on: March 04, 2019, 12:04:28 PM »
This is spam, right?

bacchi

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Re: A way to achieve passive income in 10 years?
« Reply #8 on: March 04, 2019, 12:07:51 PM »
This is spam, right?

Probably. The OP sets it up with "Any links to articles or resources you guys know about would also be much appreciated."

I expect another newbie to come along any time now and mention a site that'll make you rich!111!!! with minimal effort.

Finallyunderstand

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Re: A way to achieve passive income in 10 years?
« Reply #9 on: March 04, 2019, 03:00:14 PM »
This is spam, right?

Probably. The OP sets it up with "Any links to articles or resources you guys know about would also be much appreciated."

I expect another newbie to come along any time now and mention a site that'll make you rich!111!!! with minimal effort.

bingo

waltworks

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Re: A way to achieve passive income in 10 years?
« Reply #10 on: March 05, 2019, 07:56:43 AM »
That might have already happened with the JessicaKing reply.

Mmm. Crowdfunded real estate! Can't go wrong with that one!

-W

frugledoc

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Re: A way to achieve passive income in 10 years?
« Reply #11 on: March 05, 2019, 03:10:07 PM »
You guys are good!  I didnít even have a tiny thought this was a double team spam post but now I read it itís so obvious

JAYSLOL

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Re: A way to achieve passive income in 10 years?
« Reply #12 on: March 05, 2019, 03:27:54 PM »
You guys are good!  I didnít even have a tiny thought this was a double team spam post but now I read it itís so obvious

+1

If any forum can spot and call out BS with ridiculous speed and accuracy, it's this one.  Don't mess with the MMM investing crowd.