White Coat Investor Podcast

WCI #8: Passive Income

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Feb 24, 2017
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INSIGHT

Passive Income Reduces Nest Egg

  • Passive income reduces the nest egg needed for financial independence.
  • Even a small passive income stream significantly lowers the portfolio size required for retirement.
INSIGHT

Understanding Passive Income

  • IRS defines earned income as work-based and unearned as money-based.
  • Some income streams, like book royalties, are passive despite IRS classification as earned.
ADVICE

Entrepreneurship Guidelines for Physicians

  • Don’t quit your day job while pursuing entrepreneurship.
  • Minimize cash and time invested, and use resources like incubators and angel investors.
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