Passive Income Strategies for Early Retirement: Rental Properties, Social Security, and Business Investments

Financial planners who work with millionaires have shared the most lucrative passive income streams for early retirement. According to these experts, rental properties and strategic business investments are key to building wealth and achieving financial independence.

Rental properties offer a steady stream of income and tax benefits, making them a popular choice among millionaires. By renting out homes year-round and taking advantage of tax deductions on rental income, individuals can build equity in their properties while generating passive income.

Social Security is another passive income stream that millionaires rely on, with financial planners recommending strategic planning to maximize benefits. While Social Security payments can start as early as age 62, waiting until age 70 can result in higher payouts, providing a reliable income source later in life.

Investing in businesses is also a common strategy among retired millionaires, allowing them to maintain ownership and potentially access royalties, profit sharing, or capital gains. Financial advisor Brian See notes that investing in businesses provides ongoing income opportunities even after retiring from full-time work.

Overall, diversifying income streams through rental properties, Social Security, and business investments can help individuals build wealth and achieve early retirement goals. By leveraging these passive income sources, individuals can secure their financial future and enjoy a comfortable lifestyle in retirement.