Passive Income Simulator
Simulate passive income scenarios and plan your financial independence
Frequently Asked Questions
Everything you need to know about passive income
What is considered passive income?
Passive income comes from investments, dividends, real estate, or businesses that generate revenue without active daily work.
What is the safe withdrawal rate?
The 4% rule suggests withdrawing 4% annually from your portfolio. This rate has historically preserved capital over 30+ years.
How much do I need to be financially independent?
Multiply your annual expenses by 25. This gives you the amount needed to sustain your lifestyle indefinitely using the 4% rule.
Should I consider inflation in my calculations?
Yes! Include inflation to maintain purchasing power. Consider real returns (nominal return minus inflation) in your projections.
What types of investments generate passive income?
Dividend stocks, REITs, government bonds, corporate bonds, peer-to-peer lending, and real estate are common sources.