I draw a salary from the business. The bulk of my income comes from here, a part of it from other investments.
What percentage of your income is from investments?
- Thread starter spludgey
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I draw a salary from the business. The bulk of my income comes from here, a part of it from other investments.
Doesn't that make it "earned income", even if you don't really do much, rather than passive investment income?
All income from investments.
The question was 'How much of your income comes from investments?'
Like I said, I consider my business an investment and I obtain income from it.
Fair enough.
I suppose an owner driver truck driver with no other investments could also claim 100% income from their sole investment.
Not too relevant anyway.
How you get your income is a personal thing.
What is income, for the purpose of this thread?
Can we include capital gains?
Now many will say no way. But what about when you just periodically cycle assets.
My 'narrowly defined' income is mainly from dividends.
But I also receive lumpy and inconsistent dividends from my businesses.
I also cycle my assets which results in periodic large realised capital gains.
I put 65% but I don't really know.
I don't draw any wages from the businesses im involved in (mainly because I like to work on my businesses not in my businesses).
I just know that I draw $10k a month to spend. Over time the net assets are still increasing nicely.
Can we include capital gains?
Now many will say no way. But what about when you just periodically cycle assets.
My 'narrowly defined' income is mainly from dividends.
But I also receive lumpy and inconsistent dividends from my businesses.
I also cycle my assets which results in periodic large realised capital gains.
I put 65% but I don't really know.
I don't draw any wages from the businesses im involved in (mainly because I like to work on my businesses not in my businesses).
I just know that I draw $10k a month to spend. Over time the net assets are still increasing nicely.
Actually I thought not that surprising, because it is about proportion than actual amounts, and I don't think many are actually "retired" here - even though they probably can.
So whether you are:
earning $60k pa and have $15k pa rental/investment income
OR
earning $150k pa and have $50k pa rental/investment income
OR
earning $1.5m pa and have $500k pa rental/investment income
it is all 25%
The Y-man
I envy those who are sub 10%!!! Salary must be quite high to give a low percentageimo.. im 24% as i havent included yearly bonuses as i wont ever earn as much as i did previously moving forward.... One of my units going up for rent next year so that percentage will increase... End goal is to bring it sub 15%!
Would you really prefer to earn 500k actively rather than passively?
Actively requires personal effort, passively requires little to none and also means you would have considerable assets behind yourself also.
Is the world that unfair?,i have spent a lot of time studying and watching different posters in several investment-equities sites for many years meet a few face to face and after a while you see evidence that sometimes the investment mindset is different from the one people live in the outside world..
I guess it depends on life cycle. As the poll is just a percentage.... Lets assume I earn $50k salary, and have one rental @ $500/week.
As per the formula:
(gross rents) divide [(gross rents) + (work salary)]
($26k) divide [($26k) + ($50k)]
Percentage is 34%
Assume a big shot @ $500k salary with same rental property;
($26k) divide [($26k) + ($500k)]
Percentage is 5%
Yes I would rather have a lower percentage when calculating investment income over total income... For me, I view it as better as it shows a better salaried role... Mind you I am 26. I guess for the 50+ year olds, at that life stage, it seems that a much higher percentage is better due to retiring from work, and thus still holding the ivnestment/rnetal income...
I think I fall into something similar.
I would say 100% but it's not passive income, it's active investment income.
That's certainly a different investment attitude. I've never given any thought to having a "better salaried role". I'm 100% and as my wife pointed out it's like having a doctor (salary) in the house without the 10 years of training!
I'd rather the $500k passive, got to say though some of my investments are more active.
Mines just under 50%. Its going to be a lot more next year as I will be changing career from draftie to pizza delivery driver and with job change I will be taking a significant pay cut.
I feel I need a break from the 9-5 to reset my life.
I feel I need a break from the 9-5 to reset my life.
