Passive Income

Passive Income

Passive income is regular income that is earned without any additional endeavour from the recipient after an initial set-up period. The fixed interest or guaranteed returns paid on deposits, savings and investment products, or stock dividend income, are all forms of passive income. As is income from renting out property, royalties, income generated from social media influencing, or receiving a fixed share of profits from an arms-length (“no material participation”) business in return for an up-front investment.

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