The Most Profitable Passive Income Streams

It can be difficult to create an income that is entirely passive, but a passive income can make a meaningful difference in how much you are able to grow your wealth. Some forms of passive income require a little bit of work, while other sources require a financial investment and possibly some degree of risk, but these sources will continue to earn you money as you sleep.

Peer-To-Peer Lending

If you have some money to invest, there are several low-risk options such as savings accounts or investing in U.S. treasuries. However, these have very low returns. For a better return, consider investing in a lending club. You can expect to receive a return on your investment of 10% per year. Also, you are able to split the investment among several borrowers so that you will not lose your investment if one of the loans goes bad. Even with the loans that do go bad, you will still earn more overall than you would if you were depositing your money into a savings account.

Web Content Creation

If you would rather invest time, one option is to create web content. This can either be videos, blog posts or anything else that is useful and can have advertisements placed on it. Then, you can continue to earn money through a passive income. One of the downsides is that the majority of the income generated from these means is from the initial traffic that comes to these forms of content. Sometimes, your content might be shared and this might lead to a spike in traffic, but as the content is no longer considered fresh, you will need to create more content in order to generate a passive income.

Robo-Investing

Investing with a robo-adviser is one of the most passive approaches available. An algorithm is used to perform the investments for you and to keep your portfolio balanced. The fees are reasonable and the return on investment that you will receive will make up for the fees. There are some robo-advisers who will also do everything they can to minimize the taxes you will pay on your investments. 

Real Estate

With the growing number of individuals who are renting, it may make sense to purchase a property to rent out. This can be a passive form of income because you do not even need to run the property. You can hire a rental manager to do all the work for you.

For more tips, talk with a local wealth management specialist.

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