Top Passive Income Sources Recommended by Financial Planners

Financial planners are seeing a rise in passive income sources for their clients, with real estate, dividend investing, digital products, and online platforms like YouTube channels and podcasts leading the way.

According to financial planner Brent Weiss, co-founder of Facet Wealth, many clients are turning to real estate, specifically house hacking, as a way to generate passive income. House hacking involves buying a home with the intention of renting out a room or separate unit within the home, making it a simple entry point into real estate investing.

Dividend investing is another popular source of passive income, with companies offering investors a share of the profit in cash periodically. Akeiva Ellis, a financial planner and founder of The Bemused, notes that dividend income is a major source of passive income for many clients, providing a steady stream of income in addition to capital gains.

In addition to traditional sources of passive income, financial planner Andrew Westlin of Betterment has seen a trend of clients earning money through YouTube channels, podcasts, websites, and apps. While these sources may require more time and effort, they can be enjoyable and lucrative for those who are passionate about creating content.

Lastly, digital products like printables, worksheets, guides, ebooks, and online courses are becoming a popular way for clients to earn passive income. Ellis highlights the low maintenance aspect of digital products, as they can be set up once and continue to generate income over time.

Overall, financial planners emphasize that earning passive income takes time and effort upfront, but can be a worthwhile pursuit for those looking to diversify their income streams. Whether through real estate, dividend investing, online platforms, or digital products, there are plenty of opportunities for individuals to generate passive income and achieve financial independence.