Passive Income is a Myth

By Frugal Daddy. Love What You Do. • July 13, 2016

Many so-called passive incomes are not entirely passive. If you happen to see how most people invest, you will know where I am coming from. Most of them are not guaranteed returns and we shouldn't expect to receive it on a regular basis, nor the capital preservation. Here is the definition of Passive Income by Wikipedia: Passive income is an income received on a regular basis, with little effort required to maintain it.
Here are common "passive income" people talked about:

Dividends
Property rental
Bank saving interest
Bonds/fixed deposits

Dividends
I will not assume my dividends will come in on a regular basis. Dividends are declared by the company yearly and it is not guaranteed. There is no capital preservation too. I know, some hard nuts will say buying good companies is a natural process for dividends or/and capital growth. I love their convictions. We are just playing with probabilities. ...

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