Passive income is money you earn without actively working for it. Think of it as your money making more money on its own. For investors passive income is one of the main ways to grow wealth without extra effort. It's like having an extra paycheck that helps you reach financial goals faster.
High-Yield Savings Account: Not glamorous, but it's low-risk. Your money grows slowly but surely.
Royalties: If you're creative, license your work. Every time someone uses it, you get paid.
Dividend Stocks: Invest in companies that pay dividends. You'll get a regular income stream and potential stock price appreciation.
Peer-to-Peer Lending: Lend money to individuals or small businesses online. You earn interest over time.
Alternative Investments: Think Yieldstreet, which offers asset-backed loans, art, and even litigation finance. These are less correlated with traditional markets, offering diversification.
Wealth professionals recommend allocating 15-20% of your portfolio to alternative investments. Here is why:
Invest in high-value art pieces or rare collectibles. As their value appreciates, so does your investment. This is an original, yet very lucrative investment asset type.
REITs offer a way to invest in real estate without owning property. They pay Cardidends from rental income and property sales, providing a regular income stream.
Invest in structured notes to potentially earn higher returns than traditional fixed-income securities.They are a versatile choice for generating passive income.
Short Term Notes
Yes, investing can be a source of passive income. You invest money once or multiple times, and earn returns over time. Stocks, bonds, alternatives can all generate income without active work. Learn more about active and passive income.
Yes, passive income is taxable. Generally speaking, taxation of passive income is categorized under capital gains taxes. These taxes vary based on the asset's holding period and income earned. Short-term gains, from assets held less than a year, are taxed at your marginal income tax rate. Long-term gains, from assets held over a year, have a tax rate ranging from 0% to 20%, depending on your income and filing status. If in doubt, always consult a tax advisor for specifics.
There's no one-size-fits-all answer. Stocks offer potential growth but come with risk. Real estate provides stable income but needs a big initial investment. Alternative investments offer a large range of investing opportunities, too. Diversifying across types can be a smart move.
Stocks, bonds, real estate, mutual funds, ETFs, alternatives can all generate passive income. Each has its own risk and return profile. Your choice should align with your financial goals and risk tolerance.
Think outside the box with options that Yieldstreet can offer. With alternative investments from Yieldstreet, you diversify your portfolio beyond the traditional 60% stocks and 40% bonds. In this way you can reduce sensitivity of your portfolio to market volatility. Yieldstreet provides access to a range of alternative assets like real estate, private equity, and digital assets. These are usually less correlated with public markets, offering a cushion against short-term swings. Plus, Yieldstreet makes these high-return, higher-risk assets accessible without the steep entry costs usually reserved for wealthy investors. This opens up new avenues for earning passive income while managing risk.
Yieldstreet has been in business since 2015 and has a community of 450,000+ members who look to alternative investments as a way to diversify their investment portfolios outside of the stock market.
To date, Yieldstreet has returned over $2.4B in principal and interest payments to our investors.
Yieldstreet has been featured in the Wall Street Journal, Bloomberg, Hedgeweek, and Cheddar, just to name a few, and in 2019, the Inc. 5000 ranked Yieldstreet as the #1 Fastest Growing "Financial Services" company in the United States (#14 overall).
Yieldstreet is an alternative investment platform that connects you to income-generating investments that traditionally have been reserved for institutions and the ultra-wealthy.
These alternative investment opportunities are typically backed by collateral, and span across various asset classes such as art finance, real estate, commercial finance, legal finance, and more. These asset classes have been known to generate returns for decades, but have typically been closed off to retail investors. Start investing today
Our offerings typically have predefined payment schedules, (i.e. monthly or quarterly payments), while other investments will distribute interest and principal based on the occurrence of certain events, such as a case settlement event within a legal finance investment.
The anticipated payment schedule is always outlined on the offering page of the investment offering documentation as well as the Series Note Supplement or Investment Memorandum.
Historically, Yieldstreet has achieved a 9.6% net annualized return (IRR).
Target returns vary depending on the specific investment opportunity. You can see all of the details of our current and past investments here.
Ready to kickstart your journey to passive income? Dive into our portfolio simulator and sample offerings to see how Yieldstreet can help elevate your investing game.