Which one should you invest in, active or passive income?

Good question!

You should do both active and passive investing. When you are younger and have more energy you should be doing more active investing. As you get older the percentage of active investing should decrease gradually but not entirely. Even if you have plenty of money you need to stay active and active investing is a great way to keep your mind sharp.

Active investing is where you are organizing deals and then putting together the details. Passive investing is where you are simply investing in someone else’s deal as a limited partner (or buy stocks and bonds).

Active investing typically pays more than passive investing but it also is far more challenging and takes a lot more skill than passive investing. It also has a much higher failure rate if someone is doing this the first time and does not have a mentor or proper training.

I hope that helps and good luck with your investing!

Benjamin Z Miller
www.benjaminzmiller.com