What to Know About Passive Income

From: REAP, LLC. | Retirement & Estate Advisors & Professionals

If you’re looking to boost your earnings, build your legacy or want a complement to your long-term savings, building passive income might be a goal to consider.

An extra source of income can make retirement a little sweeter, and it may also help you get to the point of retirement a few years or months earlier.

Want to know more? Here are a few possible ways some people choose to build on their existing assets:

Real Estate

One popular way to try to generate passive income is to buy modestly priced property and rent it out. If you opt for this method, take steps to make sure you don’t overextend yourself financially by buying too much real estate at once. Also keep additional costs such as insurance, property taxes and repair expenses in mind.

Common Enterprises

Creating a business where you can outsource much of your labor, purchasing a franchised business, or running a website are also possible ways to generate passive income. Consider your talents, acumen and how much time you can dedicate to determine what type of business or enterprise may be right for you.

A Balanced Approach

How does your portfolio look? Are you missing out on any opportunities to maximize the funds you already have? As always, reach out to make sure your assets are well-balanced and that you understand the tax implications of investing.

Remember Your Taxes

Don’t forget that your earnings from passive income are still likely to be taxed. Keep this in mind as April 15 rolls around and enlist the help you need.

Have any questions about building and managing passive income? Get in touch today.

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