The Truth About Passive Income

Is Passive Income a Scam or is any of the advice you hear online based in reality?

Lately it feels like YouTube is full of passive income videos. Most popular finance YouTubers seem to constantly talk about their best passive income ideas in 2023 and how they make (enter random amount of money) every week. Is it all a scam or is any of it real?

To answer this question, let's review what four of the most popular YouTubers @GrahamStephan, @AndreiJikh, @aliabdaal and @marktilbury recommend you can do to generate passive income, find out if it actually exists in Europe and if yes, go over the few truly passive options that don't require you to start a side hustle in pursuit of financial independence and early retirement.

My Favorite Brokers (ETFs & Stocks):

My Current Top 3 in P2P Lending:

00:00 Does Passive Income Truly Exist or is it a Scam?
00:45 67k per Week in Passive Income
03:30 27k per Week
04:31 Passive Income Ideas
06:12 How to Invest for Passive Income
06:58 A Side Hustle is NOT Passive
07:16 Truly Passive Income Options for European Investors
07:33 #1: Dividend Stocks and Dividend Yield ETFs
09:17 #2: REITs vs. Physical Real Estate Investments
10:51 #3: Peer-to-Peer Lending
11:27 What You Really Need To Generate Passive Income
12:09 #4: Interest On € Bank Deposits
12:52 #5: Bonds
13:31 #6: Xtrackers EUR Overnight Rate Swap UCITS ETF

ETFs mentioned (ticker symbols in brackets):
Vanguard FTSE All-World UCITS ETF Distributing (VWRL or VGWL)
Fidelity Global Quality Income UCITS ETF (FGEQ)
VanEck Global Real Estate UCITS ETF (TRET)
HSBC FTSE EPRA NAREIT Developed UCITS ETF (HPRD)
iShares Developed Markets Property Yield UCITS ETF (IWDP or IQQ6)
Xtrackers II EUR Overnight Rate Swap UCITS ETF (XEON)

Our main ETF: Vanguard FTSE All-World Accumulating (ISIN: IE00BK5BQT80, Ticker: VWCE)

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Some of the links are affiliate links, which help support me and the YouTube channel. Still, none of the links are sponsored.

Disclaimer: I am only sharing my own experience. I'm not a financial advisor and you should always do your own research and due diligence before investing. Investing involves risk of losses.

[AngeloColomboFi]

You can find the ETFs I mentioned below 👇
📈 ETFs mentioned (ticker symbols in brackets):
Vanguard FTSE All-World UCITS ETF Distributing (VWRL or VGWL)
Fidelity Global Quality Income UCITS ETF (FGEQ)
VanEck Global Real Estate UCITS ETF (TRET)
HSBC FTSE EPRA NAREIT Developed UCITS ETF (HPRD)
iShares Developed Markets Property Yield UCITS ETF (IWDP or IQQ6)
Xtrackers II EUR Overnight Rate Swap UCITS ETF (XEON)

[LiquidityOcelot]

Passive income is no Ponzi scheme. Invest intelligently in stocks, sit tight and get on with life. Let your money work!

[gizasso]

Excellent work Angelo! I am so tired of all this click bait nonsense...
I watched the first video on your channel around 1, 5 years ago and I am so happy to see that you continue the good work and remain honest. Rock on!
This channel deserves a much larger audience and I am sure it will come! ❤

[thatsmenena]

Hi Angelo, I don't usually comment on social media but appreciation is due! I have been trying to become financially literate and the amount of information, and information providers, out there is overwhelming. I am so thankful to have landed on your channel. Ever since, I have been watching most of your videos and will likely rewatch many of them. Thank you for all the work you put into this. While I still have lots of research to do, you certainly saved me and many others countless hours of work. Your content is the best I have found on YouTube and I am surprised your channel does not have more exposure! Wishing you and all your family the best on this journey to financial independence! Greetings from Amsterdam :)

[MrNikPraskaton]

Hi Angelo, greetings from Croatia. I want to thank you for all your hard work. Since finding your channel a year ago it has become one of the best sources of information online. With so many American youtubers, it is great to have someone from Europe talking about specific issues we are facing. Keep up the good work.
All the best,
Darko

[sergioguidi]

Hey Angelo! As always thanks for all the quality content you share. It's ridiculous the amount of crap content on youtube, thanks for highlighting the wrong stuff and giving your recommendations. I'm a bit pissed off with Youtube's SEO algorithms that give a bunch of popularity to those kinds of content creators. Keep up the good work man! I appreciate the transparency and accuracy of your videos. My investing is getting almost to 10k euros by now (investing my savings in a one-year window, one chunk per month) and when people ask me how did I do my research, I always point them to your channel, since it was plenty useful for me (as a European investor as well). Have a good one! and thanks for the video again

[viktorgubka]

HI Angelo, first of, greetings from Slovakia. I want to thank you for the down-to-earth, realistic content you produce, from great practical investing advice to actual results that seem obtainable. This really is some of the greatest advice I found online for my investing endeavours. Thank you.

[vincewoo]

I agree with what you are discussing in the video. I also find most online discussed passive income ideas are actually not that "passive". For myself, I do rental apartments, invest in big bank stocks, index funds, CDs and money market funds. Rental properties are more like a "side hustle" rather than passive incomes because there is always something coming up to deal with unless you pay a property manager to handle them. CDs and money market funds have low return rates and could hardly beat inflations while big bank stocks and index funds generate real passive incomes in my humble opinion.

[mf____]

Regarding the Fidelity quality dividend fund: If you check the largest holdings of it are technology stocks. So it does not represent true diversification compared to the Vanguard All-World ETF.

[sotiriskef]

Hello can you please do a video for the revolut savings acount and maybe compare it with other platform for example trade republic

[spyross]

You are better and more honest than these big youtubers. Have a nice day Angelo.

[roknovak]

Big thing to consider in investments that give you regular passive income are also taxes! Taxes on dividends in EU countries range from 5% in Bulgaria and Greece, 7% in Slovakia, and 10% in Romania (which might actually be the best on balance, considering other taxes), to well past 25% in some countries (including Austria with 27, 5%, I believe!). Unless one is lucky enough to live in say Liechtenstein (where both dividends and capital gains are untaxed), the already lofty plans all these passive income videos make are even further out of reach than a first critical examination suggests.

Perhaps instead of the how I made x in passive income craze, a "how I optimized my taxes" is called for. Less sexy, lol. But a lot more real!

[eliselecamp]

Thanks for your videos. As a fellow european investor and FIRE wanabee, it's refreshing to have a different perspective on this topic.

[NivoBoyH]

Thank you for not destroying the image I had of Andrei :) He is my favorite one from the US.
I really appreciate the content you create from the European point of view! 👏

[aski]

Great video, greetings from Slovenia 🇸🇮 btw what is the best dividend ETF in the USA?

[brunoochoa]

Finally a trust worthy finance channel. Excellent work!!

[iavorstein]

Hell Angelo just a quick question - about the etf divident payments from Interactive brokers are they automatically taxed before distribution if there is a tax treaty between the US and the country or i need to pay tax on them manually every year?

[doruv]

Great video and very honest! I am also on this road of FIRE and hope to be financially independent in 9 years :D. I have one comment regarding your suggestion Fidelity Global Quality Income UCITS ETF.. I think at least from my part a better option is Vanguard FTSE All-World High Dividend Yield UCITS ETF Distributing it has a 3, 385 m fund size and a TER of 0.29 vs 0.4 and 387m(Fidelity). I think it is important also the etf size when taking into consideration a etf in Europe as for the liquidity if you want to sell it faster for example. Best regards from Romania!

[geeweegeewee]

Why haven't you mentioned SCHD as dividend ETF option?

[girishgalgali]

can you please make one video about leveraged ETF and availablity of the same in trade repbulic