Something that many people fail to realize in their entire lives is that there are only 3 types of income, each with its own unique aspects to consider.
These income types are NOT created equal, and when you take a good look at each, you’ll know exactly which one can keep you on the path to your dream retirement – maybe even sooner than you think is possible!
And the best part of this situation is that the type of income you can get right now could be your hands-off, tax-free money stream…
As I mentioned at the start, there are only 3 types of income in the world (barring illegal activity), and that isn’t just me saying so. It’s also how the IRS breaks down income categories.
Here they are:
Earned Income – The money you work for.
Portfolio Income – Making your money work for you.
Passive Income – Making your business or real estate work for you.
There can be some debate about which sort of income is the best from person to person, but hardly anyone will argue that earned income should top the list.
In addition to be accompanied by the normal tax rate, an earned income is what traps most people into the dangerous cycle of working for just enough money to pay the bills over and over again for a lifetime.
Then comes portfolio income, which is an amazing way to create wealth, but also includes the highest income rate for capital gains.
That’s why you will likely find passive income as your favorite way to build wealth.
When set up correctly, passive income earned through real estate can allow you to receive cash flow with NO tax at all…
That’s right, no tax.
And as you well know, avoiding tax is virtually the same thing as making money…
At the end of the deal, you’ll have more cash in your pocket!
It’s all about understanding how to set everything up correctly, which is what I’ll be helping you do as we progress through these Real Estate Riches articles…
For Example: If you qualify as a real estate professional (which virtually anyone can do), you’ll be able to claim unlimited losses for beneficial tax purposes!
