Comments on: 2006 Passive Income Update

By: The Sun

The Sun — Tue, 30 Jan 2007 22:27:48 +0000

While 4% is quite good and I like it, all the gains are part of our taxable income and will increase the tax bill. I am considering whether I should reduce some holdings to actually lower the income. I am not sure if this is the right way to do. On on hand I like the money that are generated without too much effort, on the other, I don’t like pay big chuck of that money as taxes. That’s a dilemma I am facing.

By: Lazy Man and Money

Lazy Man and Money — Mon, 29 Jan 2007 18:02:58 +0000

That makes perfect sense. I didn’t think about it in that way. Considering that, 4% is actually fairly impressive.

By: The Sun

The Sun — Mon, 29 Jan 2007 04:21:46 +0000

Actually, the “passive income” are the distributions from stocks, mutual funds, and savings accounts. Those are the money that I indeed received in the past year and the price appreciation of mutual funds and stocks are not included because the gains are only on paper, not realized. If considering the price appreciation, the gain is much higher than 4%.

By: Lazy Man and Money

Lazy Man and Money — Sat, 27 Jan 2007 21:28:10 +0000

I’m envious of the passive income number. Your assets are definitely up there. I’m a little curious why the total of stocks, mutual funds, and treasury bills isn’t bringing in more than 4%. Seems like there’s some risk where you could put your money into some high yield bank account and get 4.5-5%. I though mutual funds and stocks did well for the most part this year, so I suspect that you didn’t lose money there.

By: 2million

2million — Sat, 27 Jan 2007 00:52:03 +0000

Not too shabby!!!