I often share monthly updates on my Margin Play and Passive Income strategies as separate posts. Just today, I shared how I reached $225k in annual passive income in only 5 months: 🔗 https://www.blossomsocial.com/posts/Achieving-%24225K-Annual-Income-in-Just-5-Months-Journey__POST-1755724900421-g2SPsJfd_4eq0X8gvkvUnr6Yj Recently, someone asked me: “Why invest in passive income now? You’re 43, your FIRE target is 50 — wouldn’t focusing on growth until 50 and then switching to passive income be the smarter path?” It’s a fair question, but here’s the thing: Life doesn’t always go as planned. * Some inherit wealth, while others start from scratch. * Some build stability at home, while others immigrate and restart. * Some enjoy smooth sailing until a family emergency, health issue, or natural disaster resets everything. * Some never invest until retirement and start from zero. * Even those who plan perfectly can get blindsided. That’s life — unpredictable at every stage. And that’s why the emergency fund is the most important step before investing. How Big Should an Emergency Fund Be? You’ll hear different rules: 👉🏻6 months of expenses. 👉🏻1 year of expenses. 👉🏻Keep it in HISA, or in ETFs like $CASH or $SPLT for better yield and tax efficiency. But the truth is — no one knows how big an emergency will be or when it will hit. Keeping money aside also comes with opportunity cost and inflation risk. Then Comes the Investment… 💰 At every stage of life, investors ultimately want the same thing: the best possible return to help them move through life’s journey with ease. It’s proven that the longer you stay invested — especially in strong growth ETFs or stocks — the greater the likelihood of achieving those high returns. I myself began as a growth-focused investor for that very reason. But here’s the catch: what happens if “Liberation Day” — the moment you need to cash out for real-life needs — arrives when the market isn’t in your favor? How all of these relates to WHY I invest in passive income? For me, passive income is my emergency fund. As the primary earner in a family of three, I want cash flow that continues with or without me — while also building generational wealth for my child. I set a big goal: $200k in annual passive income as my “emergency fund.” I achieved it much sooner than expected. Sure, that’s larger than what most people would consider necessary, but distributions are volatile. They can fluctuate wildly with market conditions, so I built in a margin of safety. What’s Next? Short-term: I’ll continue building passive income until April 2026. That gives me a full year of data to analyze and decide the next phase. In the meantime: I reinvest everything and keep adding monthly contributions, letting compounding do its work. After April 2026: I’ll gradually allocate more into growth ETFs ($SPMO , $USSL , $HULC , $AOTG, $ZID, $SGOL ) while my passive income stream ($MSTY, $MSTE, $USCL , $QQCL , $BANK, $SDAY, $QDAY, $CDAY, $HHIS ) remains as the “emergency fund.” Growth vs Income? I don’t see it as one vs the other. Most people build growth first, then shift to income. I chose the reverse — because at this stage of my life, with family responsibilities and uncertainty in mind, income provides security, growth provides wealth. I want both. Thanks 🙏🏼
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76 Comments
Christopher J
@cjs033 · 1yr
Excellent post. If Blossom had a pinned post feature, this would be at the top. @maxstocks, here’s an excellent post for your Weekly Buzz! 👏
le bib@le_bib · 1yrEdited
Nothing wrong with income and wanting more safety/predictability and lower drawdowns. That being said, the funds you mentioned don't do that job. They are all exposed to stocks downside. Some are also 125% leveraged so 125% of stock downside. Some are super volatile like $MSTY. Just look at Liberation Day since you mentioned it. S&P 500 max downside was -19%. MSTY went -46% USCL went -24% HHIS went -34% In investing there are 2 ways to make money: you can loan money (HISA, GIC, bonds, preferred shares) which provides fixed income. Or you can take on equity in hope the business will grow and that equity will be worth more, that's growth. So all these cc funds aren't fixed income and are based on equity. Selling covered calls on part of that equity doesn't remove any of the equity risk.
Perry's PIIverse
@piiverse · 1yr
My two daughters are 31 32... both have growing income strategy portfolios. My youngest whom is now here in blossom... her modest income without her tfsa based income portfolio generating nearly $1500 a month would have made it near impossible for her to consider buying a house. She now plans that her tfsa will pay all her mortgage leaving her employment income to use for everything else. So... for anyone to scold younger investors for wanting an income strategy to pay BILLS TODAY! And be on FIRE before 50... is myopic.
Heath
@incomewealthinvestor · 1yr
Nice right up and congrats 👏 Emergency funds only need to be baked into a vehicle that you have to remove money from like a RRIF. This would be more of a benefit to growth investors to allow their assets to recover. As you may already know I have reached a bit of a plateau and started buying $CANL and $HFIN with $CASH in the future. I see every investor being unique with their future goals, wants and needs with changing dynamics thru their own financial journey. You have found yours and you have a plan for a successful future! Keep sharing and always the best of luck to you and yours!!!
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