4 Steps to Passive Income Investments to Help You Succeed in 2022
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4 Steps to Passive Income Investments to Help You Succeed in 2022

Passive income investments are essential for building your wealth and expanding your assets. However, not everyone knows the best way to make passive income work for them. Innovative passive income ideas will diversify your income without taking up your time, so you can sit back and watch your investment increase.

While you may have to commit both time and money to get them started, these endeavours will eventually pay off with little effort.

Here are four great passive income ideas that could help you succeed in 2022:

1. Property Investing 

One unique way to create passive income is to invest in real estate. You can either buy a home to sell later or rent it out now to others.

If you buy a property, you will need to make a deposit on the property. Then, you can make monthly mortgage payments on the balance. If you choose to rent out your property, you will also need to pay property management fees and any other expenses.

How You Earn: The rent you collect counts as a passive income investment.

What You Need to Know: You can deduct interest and property management expenses from your income. However, finding a home to purchase might be tough if you can’t afford a large deposit. It’s also beneficial to work with someone who has real estate and/or property management experience. Contact a real estate agent to learn more about real estate investment.

2. Dividend from Shares 

Dividend-paying shares are another way to earn passive income. The dividends you receive are paid to you regardless of the performance of the share price.

You can earn dividends through the share market or purchase dividend-paying shares that pay you regular dividends. In this case, you will be paid a dividend payment that you can use to offset your living expenses.

How You Earn: Dividend-paying shares.

What You Need to Know: To acquire the shares, you will need to set up a share trading account. Purchasing and selling shares attract a brokerage fee that must be paid for each transaction. It is best to work with a qualified Financial Adviser to help you select a suitably diversified portfolio of dividend-paying shares.

3. Share Portfolio

Another way to earn passively is through a share portfolio. A share portfolio usually consists of shares,ETFs, and similar investments.

It is similar to owning a dividend-paying stock, but you can purchase a share portfolio for less money than you would have to invest in a single stock. Again, if you work with a qualified Financial Adviser, they can help you build a suitably diversified portfolio that reflects your appetite to risk so you can worry less about fluctuating stock prices.

How You Earn: The interest, dividends, and capital gains you receive.

What You Need to Know: To acquire the shares, you will need to set up a share trading account. Purchasing and selling shares attract a brokerage fee that must be paid for each transaction. Shares are a long-term investment and the prices and returns can fluctuate over time,

4. Retirement Income Stream 

Once you look to retire, you can access your Superannuation and look to establish a Retirement Income Stream,

Essentially, you nominate a regular income payment and invest the proceeds in accordance with the level of risk you are willing to take before ensuring sufficient funds are held within the cash account to ensure you have sufficient funds to meet your ongoing income requirements.

The main attraction to this option,

  • Tax-free income
  • Tax-free earnings
  • No Capital Gains Tax

How You Earn: The underlying investment portfolio will achieve both income and capital growth over time.

What You Need to Know: Investment markets can be volatile, Government rule changes and you are required to take a minimum income payment which may diminish your original investment or capital over time.

Knowing Passive Income Investments

You can keep your money and other investments working for you through passive income investments and regularly making micro-contributions, such as purchasing shares. Whether you’re a part-time worker, full-time worker, or retired, you can still earn a healthy passive income to allow you to focus on the more important things in life, like enjoying Port Macquarie’s great coffee shops with friends, a walk along the famous break wall or perhaps some of the best beaches that Australia has to offer.

If you need financial advice in Port Macquarie, Coastal Advice Port Macquarie provides financial planning strategies to help clients achieve their desired financial success and security. Your guide can help you to enjoy your dream retirement by delivering personalised financial advice for a relaxing, rewarding lifestyle. Take a step towards your financial freedom today and live your best life. Book a complimentary meeting today!


DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.
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