5 Types of Income to Create Infinite Income

 

- AZ TRT S06 EP09 (271) 5-25-2025           

 

What We Learned This Week

• Multiple Streams of Income strategy
• 5 Types of Income – Career, Investment, Retirement Account, Pension, Tax Free
• Diversification of income provides you security and freedom
• Build Infinite Income thru initial investment, and profits pay off loans, then go on forever
• George Lucas created the Star Wars IP one time, and gets infinite returns from the movies & merchandise
• Real Estate, Business, and Insurance products are good assets for infinite income

 

 

Notes:

 

Segment 1:

The 5 Types of Income – Why One Stream Isn't Enough

Opening: The Economic Shift

·         The economic landscape has changed dramatically over the last 50 years.

·         While business and technology have advanced, personal finance education and systems haven't kept pace.

·         Inflation has significantly eroded purchasing power.

·         It's no longer the 1950s where one income could support a family of four. Now, two incomes are often required—and even then, many people have a third gig.

The New Normal: Side Hustles & Financial Reality

·         According to recent stats, 70% of people need an additional income stream, often from a side business or freelance work.

·         30% of Americans hold a second job.

·         Among millennials, that number rises to 50%.

 

 

The Lesson from Robert Allen & Rich Dad, Poor Dad

·         Robert Allen's Multiple Streams of Income advocated for income diversification to gain safety and freedom.

·         Robert Kiyosaki's Rich Dad, Poor Dad emphasized acquiring income-producing assets—his favorite being real estate.

The 5 Types of Income

1.    Career or Business Income
Your primary, day-to-day W-2 income—pays the bills and covers monthly expenses.

2.    Investment Income
Comes from appreciating or income-producing assets like real estate, stocks, or Bitcoin.

3.    Retirement Accounts
Tax-deferred income sources like IRAs or 401(k)s—subject to rules and penalties but critical for long-term planning.

4.    Guaranteed Income
Comes from pensions, annuities, or Social Security. Designed for lifetime income and stability.

5.    Tax-Free Income
Generated through Roth IRAs or cash value from life insurance. You pay tax on the seed, not the harvest.

Call to Action:

·         Make a list of which of the five types of income you currently have.

·         Strategize how to build the remaining ones for a balanced, resilient financial future.

Analogy:
Just like a business has multiple products or a sports team has multiple ways to score, individuals should have diverse income sources to win financially.

Segment 2:

Infinite Income – Building Streams That Never Run Dry

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