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Comment by samsonradu | Hacker News Reader

Doing pretty well from consulting these days, however I can't manage to generate any passive income. Having saved about 30k in the past years doesn't seem to help either, interest rates are ridiculously low. Stocks and bonds are not really my area of expertise so I decided to stick to cash. Investment funds might be an option in the nearby future.

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Just buy index funds. They have low fees, and beat most (if not all) managed funds long term anyway. Find a fond tracking S&P 500, one global and maybe some other markets, and you should be set.

Keep in mind that index funds will probably decline by about 3-4x over the next 10 years on the demographic cycle.

What do you mean?

There's a good San Francisco FRB white paper on it. Should be an easy Google whack. Boomers sell the world during their retirement burn.

A link would be useful.

How can something "decline 3x?" Lol.

Invert the multiplier silly.

Not a chance. Sure, it will almost certainly decline at some point in the next decade, but to predict the biggest stock market decline in history is really far fetched. Especially in an era when investment funds are holding onto record cash reserves in hopes of buying up cheap stocks during the next decline.

Thanks, any brokers you'd recommend?

Vanguard is considered the best in the business.

Have you tried to automate some of the tasks of your business? Meaning you structure them in a repeatable fashion and find people who want to work on the steps of your defined process. That way you can also achieve passive income.

My business is writing code, so basically automating processes for other businesses. Not sure how I can turn that into a passive income. My tasks are hardly automate-able. What I started doing is teaching programming to others and partially outsourcing tasks to them but it's not going so fast :)

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