It is a great year for investors in 2024. The S & P 500 index rose more than 23%! I don’t think it can surpass 2023 in 2024, but I am completely wrong. That’s why you need to continue investing. In any case, our passive income is also well performed. In the final analysis, our expenditure is less than our annual passive income. That’s great. However, we will make some changes in 2025.
Passive income is the key
Passive income is the key to successful retirement early. Once your passive income exceeds your cost of life, you have achieved financial independence. Money is no longer a problem, you can do anything you want to do. I retired before our passive income arrived, but I also had another source of income -writing blogs. Fortunately, in the past 12 years, retirement in advance has worked well for me. Our family income is good, so we continue to invest. This has doubled our net assets during this period, and now our financial situation is quite comfortable. However, we are about to face some huge expenses. Four years later, our son graduated from high school and went to college. It would be expensive, but we were saving money for this. I hope we will be enough by then.
At present, we support our simple lifestyle through the following source of income:
- Ms. RB40 Full -time work. She was vacated in 2022, but she was not ready to retire. When our son graduated from high school, she might retire.
- I work on the blog for several hours a week and generate a little online income. I have some other small sidelines.
- Passive income Investment from our real estate crowdfunding, dividend stocks and rental real estate.
*FI ratio = Passive income/expenditure
Financial ratio
FI ratio is a simple indicator of measurement progress All -round Financial independence. Once 100%reaches, then Ms. RB40 has enough confidence to stop full -time jobs. When I told her that she could retire today, she still didn’t believe me. Personally, I think the 100% FI ratio is a bit overkill, but it is better to be more cautious. Usually, financial independence means accumulated about 25-30 times each year, and we achieved this goal in 2012.
2024
- Passive income = $ 76,523
- Expenditure = 63,086 US dollars
- FI ratio = 121%
In 2024, our FI ratio performed well. Our expenditure is also lower than I think. All of this gathered together. I don’t think there will be the same result in 2025.
*Register a free account in Empower (Previously personal capital) help manage your net assets and investment accounts. I log in almost every day to view our net worth and cash flow. For DIY investors, this is a great website.
Passive income in 2024
I am dynamic to collect the electronic table.
How do we generate passive income
Okay, that’s it that good things are. I will summarize each passive income flow and keep a separate page to learn more about details. These pages will be updated once a season. Click the link below to view the latest update.
- Real estate crowdfund – My goal is to increase our investment in real estate crowdfunding to $ 200,000. The situation has been unclear in the past few years, but commercial real estate seems to have come back. These days, I invest in apartment decoration with CrowDStreet.
- Dividend stock – In the next few years, our dividend income should remain stable. I still like dividends, but I will focus on the overall growth until Ms. RB40 retires.
- Rental property – At present, we have two rental units. One of our tenants has just moved out, and I plan to sell the rental apartment. This will have a significant impact on this source of income.
- interest – This is the interest of our bank account and bonds.
- Tax discount account – Finally, I calculate the income of the retirement account as part of the passive income. Once RB40 retires, we will be able to access these accounts through Ross’s conversion (also known as). Establish a Ross IRA stairsEssence
For more detailed information about each passive income source.
Real estate crowdfunding income: $ 15,278
I have invested in real estate crowdfunding since 2017. I think this is a good way to invest in real estate. At this stage of life, I don’t want to be a person -to -person landlord, because cooperation with tenants may be under pressure. Maintenance and maintenance also requires a lot of time and energy. Real estate crowdfunding is more passive, and the sponsor has the advantages of scale and experience.
These days, I am investing Crowd streetEssence They are the leading companies in the field of real estate crowdfunding, and many commercial projects are available. CrowdStreet is great because you can achieve geographical diversification. I am not optimistic about the Portland real estate market, so I prefer to invest in other parts of the United States
This is the electronic watch invested by my RE crowdfunding. In addition, according to my experience, provide some fast guidelines.
- No invest In basic projects. You never know what will happen to construction.
- Don’t invest In office buildings, medical care or retail venues. Some will be successful, and some will not.
- From now on, I will be mainly invested in apartment decoration. The income is good, and the chance of losing money is relatively low. Sponsors can always sell apartments to get some returns.
Active real estate project in 2024
- Crowd street Washington apartment – This is a plan for Phuket Bay. They looked pretty good, but did not pay much last year.
- Crowd street Chicago office building – This project is completed, but the business office market is still in trouble. They made capital investment, but I did not participate. Recently, they are trying to turn the building to the data center market. I’m not sure how this will develop, but I’m not very optimistic. We may lose some money on this project.
- Crowd street High -end housing – This is a fund invested in elderly living facilities. I heard that one of the senior facilities was in trouble. This will reduce the fund’s total return. A little worried, but other facilities are okay. We must wait and see.
- Crowd street North Carolina Apartment – This is a plan in North Carolina. It looks smooth.
- A apartment in Arizona – The project was successfully withdrawn and returned huge profits.
Rental property income: $ 7,260
2024 is one of the best year we spent as the landlord. The tenants are very good and do not cause any problems. We don’t have much maintenance and maintenance. All in all, this is a beautiful year. However, if a tenant wants to leave, I will sell the apartment. Portland’s real estate market is bad. The price of this apartment has not risen in the past 20 years. This is just sad.
At this stage of life, I would rather invest in other places through RE crowdfunding. Being a landlord is a good way to accumulate wealth, but we plan to move to California after graduating from our son high school. Also, I don’t want to be a landlord anymore.
*New investors can start from this -how to invest in renting properties.
Dividend income: $ 15,286
A dividend income is my favorite passive income form. Investors have a small part of these listed companies, they work for you. Recently, I turned the focus from dividend to the total investment portfolio. Ms. RB40 plans to continue working for a while, so that we do not need income. It is best to delay taxing until our income decreases. After Ms. RB40 retires, I will re -focus on dividend income. If you are a new investor, there is a useful article here -how to start investing in dividend stocks.
As for re -investment, I won’t drop. I just accumulate dividends and invest in index funds or real estate crowdfunding.
For new investors, I Strongly recommend the First SecuritiesEssence The first securities is an excellent discount brokerage company that has been using for many years. Many of their transactions are now $ 0. This is good news for young investors. I remember when I started investing, each transaction paid $ 80.
Tax discount income: $ 35,985
New investors should read these articles first.
The money in these retirement accounts is not easy to withdraw (I am 51 years old this year), but they are still counted as passive income. Once we all retire all -time, we will build a Roth Ira step to visit our traditional Ira, so that we do not have to pay 10% of the advance penalties.
Summary of passive income in 2024
2024 is a great year for us. Each passive income source is stable. In particular, real estate crowdfunding has obtained considerable returns from the completed items. However, two projects are in trouble, so RE crowdfunding does not seem to be good in the next few years.
Last year’s rental income was also very good. However, after tenants leave, this source of income will collapse. I will sell apartments and re -invest in more passive things.
2025 will be a transition year. Our passive income may be lower. I hope our expenditures will not grow too much. We will see how things go.
And you? Do you have passive income?
In the long run, real estate investment should perform well. In our U.S. housing shortage, people need to find a place to live. Look at crowd streets If you want to get passive income from commercial real estate. This is much easier than the landlord. However, I am not sure how interest rates will change things. If interest rates continue to rise, the exit project may be more difficult. stay tuned.
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Passive income is the key to retirement early. This year, Joe and CrowDStreet invest in commercial real estate together. They have many projects in all parts of the United States, so let’s take a look!
Joe also strongly recommended Personal Capital to DIY investors. They have many useful tools to help you achieve financial independence.
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