Passive Income

Passive Income

When thinking about passive income, one usually thinks about how much will the yield of a particular investment generate for me?  For real estate, that will be your cap rate and for blue chip stocks, that will be your dividend yield, but both concepts start and end with the same fundamental calculation — income received / investment purchase price.  That got me thinking — given that the median American family earns approximately $59,039 each year, how much would you have to have in an investment for its interest’s interest to equal the median American household?  Well, it depends of course on what sort of investment we are looking at.

Continue Reading