The goal of most retirees is to switch from an earned income to passive income.
Earned income is what most of us do every day. We trade time, energy, or brain power for money. We go to the job site, check into the office, go to the firehouse, or our shop and get to work. We get paid for what we produce or do. If we don’t produce or do, we don’t get paid. We work in order to get money.
Passive income isn’t generated directly from our work. Passive income is money working for us. Passive income is interest from a savings account, interest from a bond, a dividend from a stock, or cash flow from a real estate investment. Passive income is produced whether or not we take an action.
The trick to getting a huge passive income is accumulating lots of investments. A $300,000 investment earning 3% returns $9,000 to the investor. A $3,000,000 (million) investment returning 3% returns $90,000 to the investor.
If you would like to discuss opportunities to start accumulating investments using real estate, please call me at (925) 385-8798.