Passive Income-The Ageless Millionaire Way To Financial Independence

Passive Income-The Ageless Millionaire Way to Financial Independence

By Adriane Berg

A cautionary fairly tale warns us not to kill the goose that lays the golden egg. But, for most of us “Wealthicide” is not our problem. We never had the golden goose in the first place. Well, it’s time to get goosed!

As Ageless Millionaires our Golden Goose is passive, life long income. Let’s look at the three main components of passive income and several of its major sources.nn#1. The Income is Passive, You are Active

My favorite source of passive income is rental real estate. It can be commercial or residential, so long as the income you receive from rents exceeds the carrying costs, including any mortgages, taxes insurance and vacancy shortfall. Despite what the infomercials tell you, such real estate takes work. It can be wonderful and rewarding, but to be passive you’ll need a great manager, and the know how to pick the property. I’m about to go on a “Real Estate Safari,” to Canada, you’ll find the details on how to qualify and find property that yields truly passive income in the September blog.nn#2. The Source of Passive Income Does Not Dry Up

Another great source of passive income is any kind of business that has constant and consistent renewals for which you do not work, or work very little. Examples include owning vending machines, an ATM machine, network marketing (Mary Kay, Young Living, hundreds more). Or you can be in the information business, as I am, and get royalties on books, e-pamphlets and cds. These avenues to continuous income are always available, but they, too, have a catch. You must train yourself in sales and marketing. Check out www.salesdogs.com, and take their free quiz to learn how to make yourself comfortable in sales.nn#3. Passive Income Has an Exit Pla

Pundits who extol the virtues of multiple streams of passive income are right, but they are talking to thirty year olds. Us Ageless Millionaires will eventually want to stop even the paper work that comes with wealth. Take tax liens, for example, another great source pf passive income. Visit you local sheriff’s office, get a list of auctions on which you can bid to pay off defaulted taxes bills, and receive hefty monthly interest on your investment. If the payer defaults, you get their land or property. Either way you win. Except that it takes know how, and trips to the auctions, at the very least. So no matter what path to passive income you choose, either have a loved one with power of atto
ey learn all you know and eventually take over, or pick real estate or a business you can sell when you want to exit, and just lie on the beach.

The Only True Source for Completely Passive Income Short of Your Rich Uncle’s Trust Fund

The only truly work-free, no selling, no exit plan needed source of passive income is a life long annuity. Many of you have two, one is Social Security the other is a pension plan. If you are a baby boomer or younger you probably have no pension, just a 401k that is woefully under funded, and Social Security that covers a fraction of your life style.

It would all work out, though, if only you had the foresight to die young. Alas, you plan to hang in there, so you may have to create your own annuity. The insurance companies are happy to oblige. You can trade a lump sum of money for monthly passive income and transfer the risk of your long life to them. Many such products pay you double if you need long-term care. Don’t confuse these with variable annuities that are tax wrappers for mutual funds of fixed annuities that are more like tax-advantaged cads. Immediate annuities are contracts that offer income which lasts as long as you do.

Which Works For You?

You’re probably not sure. To find out, just join www.longevityclubonline.com for your free Ageless Millionaire tutorials on passive income, real estate safaris and fun, friendship and finances in the fabulous decades ahead.

Adriane Berg is a consultant to financial companies, an international speaker on longevity and the baby boomer, and the author of “How Not To Go Broke At 102:Achieving Everlasting Wealth,” John Wiley & Son. Visit her website at www.adrianeberg.com, and join the Longevity Club, www.longevityclubonline.com, dedicated to fun, friendship and finances in the fabulous decades ahead.