Passive income from investments
Most 'passive income' ideas are actually work. Income investments are the closest thing to truly passive: you buy once and get paid interest or distributions.
The main types
- Treasuries – government-backed interest, free of state tax.
- Municipal bonds – interest often free of federal tax.
- Company bonds and bond funds – higher yield, more risk.
- REITs – income from real estate without owning property.
- SEC-filed offerings – Reg A Tier 2, interval funds, non-traded REITs/BDCs: higher stated yields, harder to sell.
The trade-off is always risk
Higher yields come with more risk of default, price swings or money being locked up. IncomeGrid shows a risk level from 1 to 5 next to every yield. IncomeGrid ranks every item by yield after tax for where you live: federal, state and each investment type (Treasuries, municipal bonds, corporate bonds, funds, REITs and filed offerings are each taxed differently).
Discover what most investors never see
IncomeGrid has 40,000+ investment options screened, in one list, the same for everyone.
Sources
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