An active income from job would stop after one’s retirement but a passive income from investment could continue with minimal monitoring required, eg. buying a portfolio of giant stocks or even property at low optimism price during the market crisis, holding long term or even a life time beyond retirement.
The beauty of investment (stocks, properties, commodities, forex, bonds, etc) is to provide an alternative source of passive income from investment to us, with little effort put in, in additional to own active income from professional job (engineer, teacher, accountant, admin staff, salesman, etc). Ideally, a combination of both active income from job and passive income from investment would provide a more stable dual engines of growth for our financial needs, supporting the growth of a meaningful life with lower risk.
We don’t have to be excellent in all areas of life. However, it could be risky to depend on only 1 professional job or skill after investing 16-20 years of time investment (primary school, secondary school, tertiary school) in mainstream school. This is called concentration risk for income. What if there is a drastic change in industry needs, the job becomes obsolete in the next 1-2 decades? Then, the time investment would be wasted and family could be at risk as the active income from job may not be sustainable anymore.
Good habits in life leads to higher probability of success in life as well. If one likes to study, chances of doing well in academic is high. If one practices an unique skill with years of hardwork, likely the active income will be higher with salary increment or better business. If one pays attention to business fundamentals, the confidence of buying and holding a good stock for capital gains and passive income from investment will be strong. If one is sensitive to trends and changes in the market, will be more likely to be a good trader in stocks.
Initiative the positive habits in life for active income from job and passive income from investment. Start the second engine of passive income from investment, learning from high quality free investment courses (Optimism Strategies + Fundamental Analysis + Technical Analysis + Personal Analysis) from Dr Tee.
