If you want to achieve financial independence before the traditional retirement age (60+), you must yield passive income. In our current low interest rate environment, this post will highlight the best passive income investments to help you get there.

Passive income is the personal finance equivalent of the Holy Grail. If you have enough passive income to support your desired lifestyle, you are finally free! You are free to say and do whatever you want. Due to a lack of passive income, far too many people fail to live their truth.

However, the only way to generate usable passive income is to build a taxable investment portfolio that includes real estate, alternative investments, and other investments.

Maximizing your 401k, IRA, and Roth IRA are all wise investments. Unfortunately, in most cases, they cannot generate enough passive income to support you until you reach the age of 59.5. When it comes to achieving financial independence, the hope is that we do so as soon as possible.

Why Did I Concentrate on Passive Income?

I had had enough of working 12+ hour days and eating rubber chicken dinners at our company's free cafeteria after about the 30th day in a row. Working in investment banking was exhausting. To break free, I needed to generate more passive income.

Best passive income investments starts with saving

The most important reason to save is so that you can do what you want, when you want, without anyone telling you what to do. Financial independence is the best!

Your taxable retirement portfolio will enable you to retire early and do whatever you want. Because your taxable retirement portfolio generates passive retirement income. You can't touch your 401(k) or IRA before the age of 59.5 without incurring a 10% penalty.

The pandemic has shown us that we CAN SAVE MORE IF WE WANT TO. Prior to the pandemic, the personal saving rate in the United States was around 5% – 7%. Now it appears that the average saving rate will be above 10% on a consistent basis. Let's look at the top passive income investments for 2021 and beyond.

Ranking The Best Passive Income Investments

• Rank #8: Peer-to-Peer Lending (P2P)
• Rank #7: Private Equity Investing
• Rank #6: Certificate of Deposit (CD) / Money Market
• Rank #5: Physical Real Estate
• Rank #4: Creating Your Own Products
• Rank #3: Fixed Income / Bonds
• Rank #2: Real Estate Crowdsourcingng (P2P)
• Rank #1: Dividend Investing