Is Passive Income Really a Thing?

Who wouldn't want to make money doing nothing? Passive income is possible, but there are some mighty thick strings attached.

Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson, AFC®
Directors: Katie Graham & Andrew Matthews
Written by: Julia Lorenz-Olson, AFC®
Executive Producer: Amanda Fox
Produced by: Katie Graham
Edited & Animated by: Dano Johnson
Fact checker: Yvonne McGreevy
Executive in Charge for PBS: Maribel Lopez
Director of Programming for PBS: Gabrielle Ewing
Assistant Director of Programming for PBS: John Campbell

Images by: Shutterstock
Music by: APM
Two Cents is a production of Spotzen for PBS Digital Studios

sources:

[brianb]

Usually when I hear the term “passive income, ” it’s from someone trying to sell their course on passive income. More cringe is that the course is about how to sell a course on passive income.

[leondonald]

Rule 8 indicates you don't need a high IQ to be a good investor, just 2 qualities, self discipline and a lot of patience. Investing is mostly about behavioral psychology. How can I generate more income to retire with at least $3m for long term care?

[andrewchavez]

On a serious note, this single video is more informative and accurate than 95% of the financial tiktoks/reels/shorts made by other creators. Thanks Two Cents team for creating great content!

[soapa]

All the TikTokers are raging that this video exists. They want to tell you how to make passive income by signing up for their courses 😆

[rikachiu]

I read a story about that one guy who ate nothing but ramen to save up a million dollars and then once he hit that goal got stomach cancer.

[Ryanspashai]

Thank you for exposing the influencers selling courses disguised as “financial freedom”

[AxelQC]

You need to get passive income the old fashioned way: inheritance.

[nataliefontane]

I worked in residential property management for 10 years, and I will never, never own a rental property. I know too much.

[krogdog]

My grandmother, 92, worked as a school teacher, retired at 52, and has been collecting from a pension longer than she was actually teaching! 🤯

[gusforyou]

Takeaways:
- Passive income is defined as "money earned from an enterprise with little or no ongoing effort."

- It's important to distinguish passive income from an investment's growth in value, which is an unrealized gain.

- Even for successful creators, the work required can be extensive, and many express feelings of burnout.

- Starting a business that eventually runs itself also requires significant upfront effort and is not truly passive.

- Defined Benefit Plans, or pensions, can provide a reliable passive income stream, but they are becoming less common, especially in the private sector.

- Rental properties can generate income, but they also come with various overhead expenses and responsibilities.

- Dividend-paying stocks and bonds can provide a passive income stream, but the yields are often relatively low.

[prettypic]

“If I knew an easy way to make passive income, do you think I’d be working here?!?!?”

[blaquopaque]

This video indicates you don't need a high IQ to be a good investor, just 2 qualities, self discipline and a lot of patience. Investing is mostly about behavioral psychology. How can I generate more income to retire with at least $3m for long term care?

[julissadc]

Ive always said this, when i hear "create a ytube channel" as advice for passive income, like creating content its very hard and time consuming isnt 100% passive at all

[khqwttl]

You definitely have my sub. This content is next level. For me Unimantic was the turning point. Please keep doing what you do and keep being you, love it.

[A_francis]

Everyone is advocating investing for passive income, but with a 70-hour workweek and limited financial knowledge, how can I manage it? YouTube videos say "BUY, BUY, " but when and how do I sell for profit at the right time?

[MasterDianWei]

Passive income I think is just a marketing term. "Passive Income" always needs some kind of work to make it happen.

[Christensen]

You're only as good as the decisions you make today with the money you have. To me, that is what passive income is about. This time last year I considered getting into stocks without much knowledge and decided to have a consultation with a fiduciary, and it was incredibly insightful. One year and a couple of months in, and I'm almost debt free. I truly cannot stress enough how helpful experts in this field are!

[pensacola]

Pension, interest, dividends, annuity etc are passive income.
Managing rental property is not passive income.

[tubaboytom]

Gambling, in my mind, is the "passive income" scam that is hurting people the most. Little effort with huge promises of rewards? Sounds like the very definition. I think we aren't talking enough about gambling right a lot of younger people are tip toeing with it in very volatile/manipulated stocks and sports betting.

[MatthewHendren-xz]

If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you...prevent inflation