Passive Income is a Myth

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People who want to get ahead and succeed in their lives and businesses don’t sit still. That’s why passive income is a myth. Nothing in life is passive. Some people who own rentals, perform equipment leasing, or own real estate may argue that statement, but even that income is not technically passive, anyway.

In this video, Andrew shares a video from Gary V and explains why he thinks passive income is a myth.

00:00 Start
0:21 Passive Income
2:48 Gary Vaynerchuk - Earning "Passive Income"
6:13 Passive Income is a Myth
8:00 How to Become an Entrepreneur
12:08 Capital Gains Tax
16:00 How To Become Rich
20:00 Selling Books

Andrew Henderson and the Nomad Capitalist team are the world's most sought-after experts on legal offshore tax strategies, investment immigration, and global citizenship. We work exclusively with seven- and eight-figure entrepreneurs and investors who want to "go where they're treated best".

Andrew has started offshore companies, opened dozens of offshore bank accounts, obtained multiple second passports, and purchased real estate on four continents. He has spent the last 12 years studying and personally implementing the Nomad Capitalist lifestyle.

Our growing team of researchers, strategies, and implementers add to our ever-growing knowledge base of the best options available. In addition, we've spent years studying the behavior of hundreds of clients in order to help people get the results they want faster and with less effort.

DISCLAIMER: The information in this video should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Nomad Capitalist can and does not provide advice unless/until engaged by you.

[devereauxjnr]

Asking a real estate broker if it’s time to buy is like asking an alcoholic it was time for a drink.

[mkwallstoryteller]

You're a mind reader, my friend. I always laugh at these YouTubers who brag about being retired before they've reached 40 years-old. It's like, bro, you're putting out 3-4 videos a week, selling a course, and privately coaching people to supposedly retire on passive income. And probably managing crypto, stocks, and real estate behind the scenes. That's all work, not retirement. That's not passive at all.

[frankleahy]

Great closing words: "Everything has to be watched. Everything has to be managed." ... unless you want to live in the forest, sleep on the ground, and forage for berries that statement is very important.

[TheZacman]

Thank you for calling out the bs of the fake financial gurus on YouTube who only want to sell you their course. I appreciate your genuineness.

[Micloren]

As a professional poker player it's not very often I see someone of Andrew's caliber not being completely dismissive of poker as a career/lifestyle choice. I give even more props to the fact that he seems to understand how incredibly difficult it is & how much work is required to be truly successful at it. It's honestly refreshing.

[BaliBrit]

Its delayed gratification rather than passive income, you need to work hard for decades and invest as much as possible to build a portfolio that pays for your life style

[speedendurance]

Remember, in the Gold Rush, the only people who made 'real' money were the folks selling pics & shovels.

[freeme]

“Winter is coming, need to work” this simple thing says so much about the world.

[DewTime]

I 100% agree about the “company it keeps”. The passive income mantra attracts a ton of scammers and borderline scammers. Like sure their course might be legit, but you don’t necessarily need to buy a course to learn what they’re trying to teach.

[mstcrow]

Good to see "passive income" not being confused with not working.

[whispie.]

Every time I hear someone say "I could live off my dividends but I choose to continue my business" or like he said "I'm building a 7 figure dividend income", I just feel like their life outside work sucks.
I could never trade a life traveling and relaxing with my wife, volunteering here and there and going to museums and meeting friends for work. Ever.
And if you do, it's one of two options: either you think you don't have enough money, or your life outside work sucks and you'd rather feel the fullfilment of making more money and growing your business

[advancedomega]

The term passive income is usually used by MLM people.
Whenever they start to tell me about this, my answer is "Passive? You are still out there looking for new people to join your scheme, THAT is very active."

[LaddDentalGroup]

No such thing as "easy money" in a free market! Thanks for the content

[edwardperez]

You have no idea how badly I needed to hear this and get this explained, thank you.

[JordanScottMills]

Passive income is just a scale with more and less work but there's nothing with no work

[Kitsune]

I have yet to meet one person who talks about "passive income" that isn't seriously lazy and work avoidant. It's kind of amazing because if they'd just put that same effort into creating value they wouldn't be broke.

[markmaracatu]

I am moving to the beach in Mexico in two weeks. I spent 25 years working my ass off. I will live on the beach in Cancun and keep working my ass off at a job that I don't like anymore but pays A LOT of money. And I work very passively at it. That's my idea of "passive income ". I already have beach front real estate there, and believe me, there is nothing passive about it. Pain in the neck dealing with people, contractors, maids, condo management, etc

[iolss]

There's a brazilian finance instructor that says something in the line of "The only way of having income is through work (being IC, entrepeneur, etc), there's no passive income, the only thing that you can really do is making a living of an enourmous asset that you earned in your life by working", I think it kinda resonates with your message, I hope to have new ideas to expand my business in the coming months/years, since now my company is estabilished only so I can be a contractor.

[Thomas_Hardy.]

Owning real estate for rental purposes is a hellish 24/7 job. Nothing passive about it. Younger and new generation renters are horrible tentants. Older mature ones are getting scarce. In US, renters intentionally treat rentals as destruction projects. Utilities, Taxes are sky rocketing. Maintance and repair costs are sky rocketing. And, most people dont know, in US property management companies make most of thier money through padding maintance and repair bills and by creating "urgent high cost" padded repair issues. In europe its impossible to evict non paying tenants. In Asia, condos are poorly built, poorly managed and require huge property management fees. In the few great markets like singapore, taiwan and Hong Kong they make "renting by foreigners" extremely expensive with stamp fees, high rental income tax, capped rental rates.

[koussaymob]

What people dont understand about passive income is that it is income that has been ALREADY established with countless hours of work. Passive is just expanding your business to diversify around other fields. You're not retired. You just turned into a busy manager.