What are the best passive income streams and opportunities?

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What are the best passive income streams and opportunities

Passive income is a way of increasing your financial security. The advantage that passive income has is that it is money earned that does is not reflective of the time invested. The financial security provided by passive income can ensure you get to have some financial padding when times are tough or when you require extra cash. There are varied passive income streams and opportunities that one can take advantage of. The choice on which one will work best depends on your passion and the level of investment you wish to make.

Annuities

By far the most attractive passive income opportunity, annuities present a viable avenue for getting income with minimal risk. With annuities, individuals buy insurance product and are guaranteed monthly income through payments made by the insurance provider. Annuities are among the best opportunities since one can hold a preferred job and make investments at their own discretion.

Network marketing

The beauty of network marketing is that the initial effort is what counts when it comes to reaping the rewards of passive income. Network marketing works by letting you create a workforce based on a downline chain. With your downlines creating more business by creating downlines of their own, you get to have passive income from the hard work of your downline.

Index funds

Among the best passive income opportunities is Index funds. Index funds allow you to invest in the stock market in a passive way. By making an investment of capital in the index funds, the duties of checking which stocks are viable are lifted from you meaning you only become active when collecting your earnings from the investment.

P2P lending

Peer to Peer lending allows you to become a shark where you invest in your peers and wait for the returns. It allows you to offer loans to individuals who otherwise do not qualify for the conventional loans from financial institutions. It also lets to choose who to offer the loans thereby giving you the opportunity to perform your own personal scrutiny to determine viable candidates. The best aspect about P2P lending is the fact that you can distribute risk and thereby give you a better chance at gaining returns.

Affiliate marketing

There are massive advantages to utilizing affiliate marketing as a means of earning passive income. Affiliate marketing works on the principle of partnerships where you can partner with a company to promote their products or services in exchange for commissions or a percentage of the sales made due to your advertising efforts.

Treasury Inflation-Protected Securities

Investing in the Treasury Inflation-Protected Securities is a sure way of earning passive income though the returns are usually lower and may take a lengthy period of time. TIPS are structured to provide individuals with a chance of buying government bonds at a specific price and after a period of time when the bonds mature, you get to sell the same at a higher price. It is a risk-free way of earning passive income and getting the full value of your investment.