Can you live off passive income?

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Good Question!

The simple answer is yes. It is quite easy to do. For example let’s say you want to have 60,000 per year in passive income. You find some investments that after tax pay 6% and purchase one million of this investment.

A good example would be a bond. Let’s say this hypothetical “after tax” bond returns 5%. You purchase 1,000,000 worth of these bonds. You now have 50,000 per year in passive income.

You could also become a limited partner in some multifamily investor’s large apartment complex. That is a really great way to have passive income. You can place 100,000 to 1,000,000 and then just enjoy the passive income. By definition as a limited partner you are passive in the investment.

I wish you good luck with your investing!