What is the best way/option to start generating a passive income stream for an initial investment of $20k?
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10k into BTC + 10k into AMZN
An easy way to get started is: put your $10k in VTSAX and withdraw 4% per year as your passive income. That's around $33 per month. If markets behave anything like they have in the past, you should be able to do this forever.
how do you do this? where do i buy VTSAX?
You need to open an account at a brokerage firm such as Charles Schwab (www.schwab.com) or E-Trade (www.etrade.com). You can do so online. Then transfer money from your checking / saving account at your bank to your cash account at the brokerage. Then login to your brokerage account, click "buy securities", choose VTSAX, set the amount to your entire balance and the next business day you get a confirmation email. You're now a shareholder in hundreds of businesses in America. Congrats.
Open a Robin hood account and buy stocks of companies that you feel have great tech or you believe in the leadership...for example I'd u can't live without app A or app B, maybe there are many like u and hence good companies to invest ....like wise if you think xxx is a great car and you want to own one but can't afford then buy their stocks. If u understand the business buy it else just keep the money in your account and wait till the bank makes you a preferred customer and enjoy the perks !
Don't do this. It's called timing the market and you'll get crushed. Buy index funds.
Buy index funds and wait till you turn 70 to make some pennies on your 20k
Passive income is somewhat of a misnomer (lie?) The only real passive income is dividend yields or REITs but even those require somewhat active monitoring. Find a dividend stock you believe in and invest. Get on a brokerage that supports DRIP (dividend reinvestment program) to get essentially compounding dividends. Historically Coca Cola ($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.
Passive income from the stock market is just one of MANY options.
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?
Invest in a porn site. Easy 300k a year with small investments
How do you invest in a porn site? Do you need to contribute more than just money?
You need to contribute time as well. Then the investment is totally worth it. 🤣
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.
How can I generate passive income with $5?
Give a loan to a 10 year old and tell him to pay you a quarter back every month until he graduates high school.
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.
Was going to say either dividend stocks (although 20k isn't much for diversifying individual stocks) or a dividend focused mutual/etf
PersonalCapital account referrals: https://share.personalcapital.com/x/dAZF5R
That’s 🥜
Peanuts it is! But we’ve gotta start from some where. Lol
Invest in a three fund portfolio. Average is 10 percent per year. That's not bad for 20k.