Passive Income General

If you can pay your bills with your salary and you're not ready to retire, passive income is not for you because it's taxed.

It's better to gain equity that's not taxed until you sell so you can build up your net worth, which should be your main goal.

I'm mostly into re notes and property for investments.

>>1753916
>It's better to gain equity that's not taxed until you sell so you can build up your net worth, which should be your main goal.
I'm not OP, but I'm new at this. Can you please elaborate on this point? What is a good free online resource for leaning about this?

>>1753808
>I'm already debt-free
I'm also debt free, but is this necessarily a good thing? Our economy seems to be built around the concept of debt being a normal thing. It helps you build credit and it helps you live more lavishly. Just don't let it get out of control

>>1753808
>High yield
> 1.05%

>>1753986
Yes, it is a bad thing. If you owe money then you're getting charged interest, or your one mistake away from getting hit with interest. You don't NEED a credit score. You can get a mortgage without a credit score. You shouldn't ever have a car loan anyway.

This is why America is the richest country in the world, yet most of its citizens are poor.

>>1753977
It's not hard to explain. Let's say your dividend pays 5%, already a bit low. After fed and state taxes of even just 20%, that's now down to 4%, even worse. You might as well just pay off your mortgage rather than investing at this point.

But, I hear you say, the upside is that the stock may have risen, and that's not taxed. Great! So why not go with non dividend stocks or index funds to start things, which will reduce your tax liability and give you good gains to boot.

Just remember that you'll want to transition to a more income heavy vehicle as you get older.

>>1754004
Debt, when used properly, can make you wealthy, though. Not all debt is bad.

>>1753916
>>1754099

Can you explain this? Seems like some really poor logic to me. Passive income is still more income regardless of its tax status. If I don't have debt, it isn't like I'm missing out on the rate arbitrage. Index stocks also pay a dividend, which is what I am invested in. I get capital appreciation as well as dividend income, which is taxed at 15% maximum regardless of my income bracket from a salaried position. In my Roth IRA, these holdings grow tax free. In my brokerage, I pay would have to pay like $5 in taxes but with all of my deductions I end up getting money back at the end of the year.

>>1753986
Yes, it's a good thing for me because it reduces my monthly living costs. Previously I was paying $300/month for my car loan and $300/month for my student loans. This $600 is now free to be invested or placed in other productive areas.

>>1753995
Sucks, but yes that is considered "high yield"