How to build $2500 monthly passive income?

I would focus on markets which are tax friendly for dividends. For example, dividend income is tax free in Singapore and Hong Kong. The U.S. has a 30% withholding tax on dividends for foreigners, so I would avoid the U.S. for dividends, although it's great market for growth: https://youtu.be/ZV79AL8sI3k

You can build your passive income around these 2 forms: Guaranteed and Non-guaranteed Passive income.

Non-guaranteed passive income includes:

1. Capital gains from equities/ETFs/Unit trusts

2. Rental income (non-guaranteed because income dependent on tenants, and is rental is usually fixed on a contract basis only)

3. Dividend income from stocks or dividend funds (Dividend payout is based on company's discretion)

Guaranteed income includes:

1. CPF Life

2. Annuities

3. Bond coupons

4. Endowment products

5. Fixed Deposits

Indeed there are definitely various intruments to be invested in to achieve the rate of return you are expecting, according to the risks that you are willing to take. Of course, most of the time, guaranteed instruments gives lesser return than non-guaranteed ones.

But the more important question when trying to build your passive income portfolio is: What are you using the passive income for? By answering this question, you'd be able to better identify what proportion of guaranteed and non-guaranteed instruments you should be investing in.

Using $2,500/month of passive income for retirement as example:

Daily neccesties: $1,000

Insurance premium: $500

Lifestyle expenses: $1,000

As such, daily necessities and insurance are your "non-negotiable" expenses and should come from you GUARANTEED income. This way, you could make sure these expenses are paid for no matter what. As for your lifestyle expenses, these are considered variable expenses and could vary according to your non-guaranteed passive income: when the market's performing well, you deserve a nice steak dinner! If not performing too well, maybe you can make do with kopitiam caifan 😂

PS: i think this is a good way to answer the question because, anyone with sufficient net worth could just put ALL their money in a GUARANTEED instrument to give $2,500/month of passive income. They don't have to take any risks to receive this $2,500/month. For example, putting $3,000,000 in a fixed deposit that gives 1% per annum. Risk free, but we all know nobody's gonna do that 🧐​​​

Technically if have sufficient the ideal would be. Just purely have so much money in the bank that the 0.05% interest is $2500 a month then just slowly spend until inflation destroy me.

But personally, and on a realistic-ish outlook. Will have to be a mix of dividend paying stocks in different classes from apple to coke to dbs that kind. Then probably 1 rental collecting property. Then some in bonds. The allocation, will have to see how much the property costs, the interest rate of the bonds. Then the final part of the pie goes to the shares. I feel.

What about option selling? Collecting premium on blue chips and index funds might be quite a low risk and profitable strategy