>Best Passive Income Method? VTSAX, reinvest the dividends.
Or VIG, Vanguard's dividend appreciation fund. Cheap, high dividend returns, stable underlying companies.
Ask HN: Best Passive Income Method?
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Re: Ask HN: Best Passive Income Method?
#72SP 500 ETF
Any Europeans here? How would you approach investing in such an ETF? I've heard investing in iShares Core S&P 500 UCITS ETF (Acc) based in Ireland is a good way to avoid paying US estate and dividend taxes, as the only tax you pay is the trade deal %15 dividend tax between US and Ireland, but I guess dividend reinvesting ETFs avoid this tax. As far as I know there is also no capital gain taxes. Would appreciate if anyone here could give an advice!
Re: Ask HN: Best Passive Income Method?
#73An ebook will likely be much closer to passive income than a SaaS product. Neither are passive though - if you want to have a consistent stream of income you will have to continue doing work. And you will certainly have to do a fair amount of work to get it off the ground (this includes marketing and/or sales, not just making). For SaaS, having a product that you can put on third-party marketplace, e.g. Shopify apps,…
I'm not sure I'd ever recommend an ebook as a good passive income method. There are good reasons to write a book, including establishing credibility that leads to more revenue for consulting etc. But you're probably not going to make a lot of money from it.
I was referring more to relative passivity rather than income potential, but I haven't written one myself and I'm not too sure whether it's worth pursuing at all if your goal is money so I'll take your word for it.
Re: Ask HN: Best Passive Income Method?
#74Earlier quoted context omitted.
Keep in mind that SPY yield today is 1.9% — below CPI — so you are losing value even before paying tax on that income. If you are hoping for capital gains / equity risk premium to provide extra return, you owe yourself to read a bit about where we are in the economic cycle, current corporate debt levels compared to history, and to look at what happened in 2000, 2008, and last December and visualize going through that…
Yup and the frustrating thing about equities is, there's no telling when those sky high PE ratios will revert to their mean.
There’s also no natural law that says it needs to be stationary. The historical mean can just gradually rise. It can be like climate change. This is what makes markets fascinating — many independent agents evaluating the present opportunity set, acting on their internalized narratives and beliefs as well as data, with gradual turnover of the population of participants.
In a thread asking for options for present passive income (ie money coming in every month that you can eat with while you learn Python) it seems important to distinguish that need vs a long term investment strategy where you have money passively going out every month instead of coming in. One thing the market provides is a trade between people who have needs on different time frames.
Re: Ask HN: Best Passive Income Method?
#75Invest in startups as a technical advisor. This has 2 effects: you will grow your network, and you will help the ecosystem. Those two, only my opinion, compound better than whatever financial instruments you can think of.
Agreed. Any tips for getting into this? Have you done this yourself?