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Prüfungsleistung 3 - Johannes Grupp

Prüfungsleistung 3 - Johannes Grupp

Passive Income

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What is passive income?

…but also income from stocks like dividends or returns after selling
…but also income from stocks like dividends or returns after selling

Difference between active and passive income

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Passive income is not trading your time for money

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Sources

in order of occurrence:

Chen, J. (2023). Passive Income: What It Is, 3 Main Categories, and Examples. Investopedia. Abgerufen von https://www.investopedia.com/terms/p/passiveincome.asp

Butt, Z. (2022, 12. März). Active Income vs Passive Income - Zami Butt - Medium. Medium. Abgerufen von https://zamibutt.medium.com

Instagram. (2022, 8. August). Abgerufen von https://www.instagram.com/p/Cg_dU07uj7U/?igshid=MDJmNzVkMjY%3D

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What can I do to earn passive income?

hereby are some newer ideas for passive income like: courses on
hereby are some newer ideas for passive income like: courses on Udemy.com , upload product designs to Redbubble.com and so on AND some more established ideas like: stock dividends, real estate property or use of vending machines

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Investment into stocks

on long term you are averaging your return to ~10 % per year
on long term you are averaging your return to ~10 % per year

Dividend stocks are always a good option

But don’t forget to reinvest the dividends!
But don’t forget to reinvest the dividends!
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Dividend yield are important, but dividend growth rate is even more important

there are a couple companies with more than 10 % dividend yield
there are a couple companies with more than 10 % dividend yield
on longterm stocks with high dividend growth rates will outperform other dividend stocks with lower growth rates
on longterm stocks with high dividend growth rates will outperform other dividend stocks with lower growth rates
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Some additional YouTube videos for more impressions and helpful hints

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Sources

in order of occurrence:

TEDx Talks. (2016a, August 23). Design Your Dream Life Through Passive Income | Alex Szepietowski | TEDxUniversityofYork [Video-Datei]. Abgerufen von https://www.youtube.com/watch?v=fDCAPOTnBIo

TEDx Talks. (2016b, Dezember 21). The 7R Theory of Creating Wealth! | Dhaval Bathia | TEDxSIUKirkee[Video-Datei]. Abgerufen von https://www.youtube.com/watch?v=E8xFo5lZGDA

TEDx Talks. (2021, 5. Mai). Create a Passive Income with Your Passion | Raquel Sharper | TEDxTenayaPaseo [Video-Datei]. Abgerufen von https://www.youtube.com/watch?v=IjI-qIgEAY4

TEDx Talks. (2018, 2. Juli). It Doesn’t Take Money To Make Money | Brandon Leibel | TEDxSDSU [Video-Datei]. Abgerufen von https://www.youtube.com/watch?v=_K4TjS9u1t4

TEDx Talks. (2020, 29. Juli). How I went from zero to 28 year old property millionaire  | Dan Buchan | TEDxUniversityofYork [Video-Datei]. Abgerufen von https://www.youtube.com/watch?v=wtGYQDc9_1s

TEDx Talks. (2016a, Juli 21). Why the Rich are Getting Richer | Robert Kiyosaki | TEDxUCSD [Video-Datei]. Abgerufen von https://www.youtube.com/watch?v=abMQhaMdQu0

FREENVESTING. (2021, 24. Dezember). Warren Buffett: You Only Need To Know These 7 Rules [Video-Datei]. Abgerufen von https://www.youtube.com/watch?v=63oF8BOMMB8

Be Awakened. (2022, 31. März). Best Way To Generate Passive Income | Robert Kiyosaki [Video-Datei]. Abgerufen von https://www.youtube.com/watch?v=rYYB6950mXM

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Don’t over estimate the return you can make with direct real estate investment

The study “An investment decision: Expected and earned yields for passive income real estate investors” found differences

As you can see 60 % earned a yearly rental yield of up to 5 % but 70 % expected a yearly rental yield of up to 7 %
As you can see 60 % earned a yearly rental yield of up to 5 % but 70 % expected a yearly rental yield of up to 7 %

But with investments into REITs (Real-Estate-Investment-Trusts) or property stocks an outperformance of the broader stock market is possible. The only thing at property stocks you have to deal with is the higher volatility.

rolling twenty-year returns are showing higher returns and lower volatility
rolling twenty-year returns are showing higher returns and lower volatility
property stocks can also beat the MSCI World, but you have a higher volatility
property stocks can also beat the MSCI World, but you have a higher volatility
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Sources

in order of occurrence:

Rattanaprichavej, N. & Teeramungcalanon, M. (2020). An investment decision: Expected and earned yields for passive income real estate investors. Cogent Business & Management, 7(1), 1786331. https://doi.org/10.1080/23311975.2020.1786331

REIT Average & Historical Returns Vs. U.S. Stocks. (o. D.). Abgerufen von https://www.reit.com/news/blog/market-commentary/reit-average--historical-returns-vs-us-stocks

Fairvalue Magazin. (2022, 27. Juli). Immobilienaktien - Wohnungsfirmen sind die Krisengewinner | FAIRVALUE. Abgerufen von https://fairvalue-magazin.de/aktien/immobilienaktien/

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What innovative approaches are there?

First of all:

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Some (old) ideas:

  • Advertise on your car/bike
  • Rent out useful household items you don’t need at the moment
  • Do a blog —> put some advertise on it/ sell your online course
  • Flip retail products (have the products physically in your space)
  • Affiliate Marketing (you never see your products physically)
  • Create a digital product
  • create a YouTube channel and put ads on your channel
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Sources

https://twitter.com/dickiebush/status/1366931132701409289?s=20

Ali Abdaal. (2020, 19. Mai). How To Make Money Online - The 3 Levels [Video-Datei]. Abgerufen von https://www.youtube.com/watch?v=TH0nNn6SmXw

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To sum it up:

set the right spots in your life:

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and as Elon Musk is saying, look for the next money you can make, instead of looking where you can save the same amount

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Sources

in order of occurrence:

Thefireducky. (o. D.). Reddit - Dive into anything. Abgerufen von https://www.reddit.com/r/wowthanksimcured/comments/o7yraj/1_may_be_2_grammar_classes_will_help_out_as_well/

Instagram. (2023, 30. Juni). Abgerufen von https://www.instagram.com/p/CuKLuQltkUR/

https://twitter.com/elonmusk