Comments on: What is Income Diversification and Why it is Important

By: BankMode

BankMode — Tue, 13 Oct 2009 18:19:37 +0000

The best thing about investments, is that it never gets old. You can’t retire from investing.

By: Pinyo

Pinyo — Fri, 16 Jan 2009 20:39:12 +0000

@Archanfel – For me, there’s no difference. Alternative income is a very broad category of income that include any income sources, excluding your primary job. So alternative income does include income from second job, investment, business, etc.

By: archanfel

archanfel — Fri, 16 Jan 2009 13:57:46 +0000

I am not sure I understand. Wouldn’t things like CD ladder or dividend stocks be an investment income rather than an alternative income?

By: hendrikus

hendrikus — Wed, 14 Jan 2009 23:30:41 +0000

Diversification is great. Many look at diversifing into something that most other people also diversify into. Not always a bad thing. The new savings account is great because $5000 will be tax free. This is great, however one must consider that if the real interest rate is negative, saving is pointless if one is looking for income. So to diversify, one first needs to determine an appropriate portfolio. Real estate is one, stocks another, cash, bonds, and pms for inflation protection. Do you have some in all these asset classes. If one is limited, just stick with something that has given real returns in the last 7 years and counting.

By: Aya

Aya — Wed, 14 Jan 2009 21:44:23 +0000

Diversification is ideal for a lot of people, but I think a lot of us don’t do it because we lack resources or don’t look into it too deeply and procrastinate. Some people don’t even open savings accounts and keep money in checking accounts because they don’t want to go through the hassle. Or, they don’t realize they are missing on savings accounts with higher rates because they don’t know about them. There are always resources people (Ahem, Thrive ) and diversification can be done in easy, passive ways and don’t always have to be a headache to think about.

By: Steve

Steve — Wed, 14 Jan 2009 20:37:18 +0000

After reading Kyosaki’s book and Robert Allen’s materials a couple of years ago, I decided that I would be in this for the next 10 years minimum. By establishing a long term commitment to alternative streams of income, you will be less likely to give up. This is something we have to work at consistently and patiently. By the time retirement comes, I would like active work to be optional. Having said that, I love working! So I will probably always work, but it is nice for it to be optional.

By: Craig

Craig — Wed, 14 Jan 2009 20:28:51 +0000

An alternative income stream is something I would like to try to establish, although being young it’s difficult because I don’t have the funds or knowledge to dive into a business or rental property. I may be trying my hands on blogging like you, and treat it as a business and hopefully over a year time can turn some side income on. It’s hard to believe that in 2009 two incomes doesn’t quite cut it anymore.

By: BloggingBanks

BloggingBanks — Wed, 14 Jan 2009 17:36:16 +0000

I am currently working on saving as much as possible from my salary and putting the savings in long-term CD ladders plus my rewards checking accounts. I am currently earning about 5% of my total income from interest income.

By: Start-Up

Start-Up — Wed, 14 Jan 2009 16:37:52 +0000

I absolutely agree that income diversification is important. It is ever more important in this economy. If all of your income stems from one location and you lose your job, you better have an emergency fund. My income comes mostly from my current job, but I also tutor on the side to make extra money. If I lost my job today I would be able to increase my tutoring hours until I found a new job in order to replace some of my income.

By: poor boomer

poor boomer — Wed, 14 Jan 2009 06:15:49 +0000

I’m trying to diversificate my income.