You want to retire from your regular job, but to do that you will need an income that will see you through the rest of your life. After you have calculated your ongoing financial needs, you need to find a source from where you can generate the necessary money from. Is rental income qualified business income? As you are aware, residual income is recurring in the same way that you derive income from renting out your house, and this could be for a life time, what is qualified business income?
Make Extra Money Is Rental Income Qualified Business Income
Other residual income can be derived from investing in stocks that pay a regular dividend. Your next task is to find some of the high dividend paying companies and examine their history and financial performance. While researching for such companies, look for the ones that have been paying out dividends regularly without break. If you find some of them not missing on dividend payments for the last ten years, then you have a winner.
In the event that any of these above companies been increasing the amount of dividends in subsequent years, then you have an even better deal. The main advantage of income from dividend is that the income tax obligations linked to it is often lower than that from regular earnings or is rental income qualified business income . In some countries, the tax laws are very relaxed and dividend income is deemed as being tax free.
Consider a Residual Income Stream
An additional option that you have is operate some home based business on the internet. There are plenty of businesses on the internet that you can choose from. The online business that you conduct can also generate residual income. There are numerous internet marketing programs and models to choose from, but you need to make an informed choice.
Go for an online business that is compatible with your strengths, competencies and personality. Some online programs linked to affiliate marketing can even be started with minimal financial outlay. After profits are realized, you can reinvest a portion of the income into diverse streams and generate even more income from multiple sources.
The internet business scene is rental income qualified business income becoming very popular and could be a viable option to consider. Initially it may seem formidable and daunting, but if you persist, you can make it a huge success out of it. It is better still if you can find a mentor who has been highly successful, to take you under their wing and guide you to similar success.
If you are thinking of retiring early, or stop working in the formal sector, then all the above options are worth considering. In the event of you looking for the most viable option with low start up costs, then a home based internet marketing business seems like the way to go.