Active income is income earned as a direct result of a specific effort. In other words, input is correlated to output.
In the United States, to be considered an accredited investor, one must have a net worth of at least one million US Dollars, excluding the value of one’s primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount this year.
An alternative investment refers to any investment which does classify as “traditional”. Traditional investments are widely considered to be stocks, bonds and cash.
As opposed to an interest-only loan in which each repayment installment consists only of interest payments with a single lump-sum principal repayment at the end of the loan period, each repayment installment of an amortizing loan consists of both principal and interest.
An increase in value is referred to as “appreciation”.