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www.JumpstartYourDreams.com Residual income is a rent received on a regular basis, with little effort required to maintain it. Some examples of residual income are Repeated regular income, earned by a sales person, generated from the payment of a product or service that must be renewed on a regular basis, in order to continue receiving its benefits – also called passive income. Rental from property; Royalties from publishing a book or from licensing a patent or other form of intellectual property; Earnings from internet advertisement on your websites; Earnings from a business that does not require direct involvement from the owner or merchant; Dividend and interest income from owning securities, such as stocks and bonds, are usually referred to as portfolio income, which can be considered a form of passive income; Pensions. Residual is usually taxable. The American Internal Revenue Service defines passive income as “any activity… in which the taxpayer does not materially participate.” Other financial and government institutions also recognize it as an income obtained as a result of capital growth or in relation to negative gearing. Residual Income – An Internet phenomenon Edward de Bono in his book Handbook for the Positive Revolution states that “at some point value must be created in order to be distributed and enjoyed.” There is a lot of real value on the Internet, and a lot of it is free to any websurfer. There is value in free information, free education, free …

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