Passive Income with $20k initial investment

Expedia PiedPipar
Jul 6 49 Comments

What is the best way/option to start generating a passive income stream for an initial investment of $20k?

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TOP 49 Comments
  • New / Strategy
    gandalfhan

    New Strategy

    PRE
    Oracle
    gandalfhanmore
    Open a Robin hood account and buy stocks of companies that you feel have great tech or you believe in the leadership...for example I'd u can't live without app A or app B, maybe there are many like u and hence good companies to invest ....like wise if you think xxx is a great car and you want to own one but can't afford then buy their stocks. If u understand the business buy it else just keep the money in your account and wait till the bank makes you a preferred customer and enjoy the perks !
    Jul 6 7
    • Airbnb NotAnAlly
      Don't do this. It's called timing the market and you'll get crushed.

      Buy index funds.
      Jul 6
    • New / Strategy
      gandalfhan

      New Strategy

      PRE
      Oracle
      gandalfhanmore
      Buy index funds and wait till you turn 70 to make some pennies on your 20k
      Jul 6
    • Airbnb NotAnAlly
      Index funds will beat most professional investors. I doubt you're one.
      Jul 6
    • New / Strategy
      gandalfhan

      New Strategy

      PRE
      Oracle
      gandalfhanmore
      Yes...I am sure you are a great professional investors with millions of $$$ hanging o. The index funds.
      Jul 6
    • Airbnb NotAnAlly
      Buy individual stocks then. It doesn't hurt me. You probably won't beat returns of index funds on the long term though. I'm sure buying companies you like is a professional investing strategy lmao. What could go wrong?
      Jul 6
    • Uber / Eng iptable
      Casino
      Jul 6
    • New / Strategy
      gandalfhan

      New Strategy

      PRE
      Oracle
      gandalfhanmore
      Alrite bro ! U win, index funds it is....
      Jul 6
  • Google / Eng Bergey Sin
    An easy way to get started is: put your $10k in VTSAX and withdraw 4% per year as your passive income. That's around $33 per month. If markets behave anything like they have in the past, you should be able to do this forever.
    Jul 6 6
    • Accenture dfkl
      how do you do this? where do i buy VTSAX?
      Jul 6
    • Google / Eng Bergey Sin
      You need to open an account at a brokerage firm such as Charles Schwab (www.schwab.com) or E-Trade (www.etrade.com). You can do so online. Then transfer money from your checking / saving account at your bank to your cash account at the brokerage. Then login to your brokerage account, click "buy securities", choose VTSAX, set the amount to your entire balance and the next business day you get a confirmation email. You're now a shareholder in hundreds of businesses in America. Congrats.
      Jul 6
    • Accenture dfkl
      thanks for this man! appreciate it

      btw i looked at the trend and YoY from 2015 to mid 2018 there's consistent uptrend. but kind of dipped and plateaued at the 75USD level. do you think 4% at this point is still feasible?
      Jul 6
    • Meetup q73smt
      The 4% takes the entire history of the stock market into account, including the Great Depression, dot com crash, and whatever 2007-9 was.

      So unless something worse than those happens, you’re good.
      Jul 6
    • Microsoft ooooooooop
      Buy VTSAX from Vanguard... it's what the V stands for 😂
      Jul 6
    • Accenture dfkl
      pros and cons of buying from vanguard vs broker companies? let's say doing it from tradestation or etrade
      Jul 6
  • Bloomberg / IT MagikMike
    That’s 🥜
    Jul 6 5
    • Expedia PiedPipar
      OP
      Peanuts it is! But we’ve gotta start from some where. Lol
      Jul 6
    • Airbnb NotAnAlly
      Invest in a three fund portfolio. Average is 10 percent per year. That's not bad for 20k.
      Jul 6
    • Intuit getpaged
      Three fund is not passive income, it’s primarily based on asset appreciation
      Jul 6
    • Airbnb NotAnAlly
      You can sell assets after they've appreciated?
      Jul 6
    • Intuit getpaged
      Passive income means you receive earnings from a source in which you’re not active in. Selling the asset would mean you no longer receive those recurring earnings
      Jul 6
  • Chase JPMCOIN
    10k into BTC + 10k into AMZN
    Jul 6 4
    • Expedia PiedPipar
      OP
      I have been seriously looking at BTC, it’s been fluctuating quite a bit lately. Does AMAZN pay monthly dividends?
      Jul 6
    • Microsoft tfsUEwWt
      Neither produce passive income.
      Jul 6
    • Microsoft BarFoo
      If you want monthly dividends, you probably need to find some REITs (Real Estate Investment Trusts) that you’re comfortable with. They can have a high payout but can be massively unstable based on the real estate market.
      Jul 6
    • Not sure real estate is a good place to invest in right now.
      Jul 6
  • New / IT FinTecCISO
    Invest in a porn site. Easy 300k a year with small investments
    Jul 6 3
    • Western Digital SVlincoln
      How do you invest in a porn site? Do you need to contribute more than just money?
      Jul 6
    • Bloomberg / IT MagikMike
      You need to contribute time as well. Then the investment is totally worth it. 🤣
      Jul 6
    • New / IT FinTecCISO
      Indeed,
      Jul 8
  • Airbnb kYFK02
    How can I generate passive income with $5?
    Jul 6 1
    • Oath OPnd70
      Give a loan to a 10 year old and tell him to pay you a quarter back every month until he graduates high school.
      Jul 6
  • Amazon moved2ms
    Passive income is somewhat of a misnomer (lie?)

    The only real passive income is dividend yields or REITs but even those require somewhat active monitoring.

    Find a dividend stock you believe in and invest. Get on a brokerage that supports DRIP (dividend reinvestment program) to get essentially compounding dividends. Historically Coca Cola ($KO) has been a reliable one that increases in value AND gives steady dividends.

    Don’t be drawn in by high dividends. Sometimes companies do that to keep stock value up even though the company is dying. Good example is Iron Mountain (full disclosure I hold a long position in $IRM) who keeps increasing dividends despite no major internal investment and quickly diminishing market share.
    Jul 6 2
    • Intuit getpaged
      Passive income from the stock market is just one of MANY options.
      Jul 6
    • Amazon moved2ms
      Like?
      Most “passive” income bandied around here and the rest of the internet is not really passive. Owning rental property is high risk and high involvement. Not passive at all. Writing books is not real passive. Drop ship companies are scams and also a ton of work.

      So outside of the stock market and REITs, what’s true passive income?
      Jul 7
  • Goldman Sachs fake engineer
    REITs if you want to spend the yield, but I think REITs are better for parking in a tax advantaged vehicle like IRA or a Bermuda corp since you have to pay ordinary income tax.

    You can also do dividend stocks or use covered calls to pay less taxes while being able to withdraw money.
    Jul 6 1
    • Atlassian / Eng
      Luffy, M.D

      Atlassian Eng

      PRE
      Facebook
      BIO
      A prematurely grumpy somewhat old man
      Luffy, M.Dmore
      Was going to say either dividend stocks (although 20k isn't much for diversifying individual stocks) or a dividend focused mutual/etf
      Jul 6
  • Google emc2too
    Yieldstreet or crowdstreet. But real estate may have peaked so pick no re investment.
    Jul 7 0
  • Headspace hfksnsidb
    Buy stocks that are paying higher dividends. Some examples - NILSY (about 12%), MBT (8%), SBRCY (4%). I’ve been investing in bs like Facebook, but they don’t pay shit so you just have to hope the stocks will go up in price.
    Jul 6 0
  • Microsoft / Eng mfCG87
    Putting everything into SPHD right now will get you about 70 bucks a month in cash.
    Jul 6 3
    • Amazon PunjabiK
      What’s sphd
      Jul 6
    • Microsoft / Eng mfCG87
      An ETF that comprises of S&P 500 companies with the highest dividend payouts and the lowest volatility
      Jul 6
    • New / Other
      DuQvV7y

      New Other

      BIO
      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      SPHD yield is 2.95% or about $49/month on $20k

      For those peanuts why won’t someone just buy bonds.
      Jul 7
  • Samsung statarb
    Buy the stock and sell deep in the money calls on stable / boring companies. Yield varies from 8% to 4% depending on how deep you go, deeper giving lower yields.
    Jul 6 1
    • Goldman Sachs fake engineer
      If the point is to take money out you want near the money calls so you can get capital returns more often instead of income.
      Jul 6
  • Google emc2too
    Yieldstreet
    7d 0
  • Airbnb kYFK02
    Chasing dividends is absolutely inferior to investing in normal ETFs and selling to generate income. Just back test this and see. Don’t just ask people. Do the work of you are going to invest
    7d 0
  • Salesforce 63n1044
    Buy baby bonds or preferred stock for true passive income.
    Jul 6 0
  • LinkedIn pliable
    PersonalCapital account referrals: https://share.personalcapital.com/x/dAZF5R
    Jul 6 0