In an ideal world of aviation, pilots would start with a legacy carrier before they turn 30, start saving for retirement by at least maximizing their 401(k) account and stay married to the same spouse for the entire time.

The previous scenario should create a very nice income to support a very nice retirement lifestyle.

Unfortunately for many, "livin' the dream" doesn't look like that. It sometimes looks like you're hanging on for dear life!

Instead it's a roller coaster, with income taking massive swings as pilots progress from one airline to another, sometimes taking a furlough or displacement along the way. And those are the lucky ones!

Many pilots have seen their jobs collapse right under their promising career as the carriers close shop.

Personally, I have experienced two airline closures, two furloughs and a displacement.

Just when I though the going was going well, 9/11 happened. And then you realize it's well beyond your control.

Never again.

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Unlike the W-2 incomes earned from working at an airline, passive income has several tax advantages.

First and foremost,  passive incomes are not subject to Social Security and Medicare taxes.

Passive incomes are rents, royalties, dividends, interest, and short-term and long-term capital gains.

According to Anderson Advisors:

"Passive income is not subject to withholding or Social Security and Medicare taxes. This automatically eliminates the combined 15.3% Social Security and Medicare taxes and amounts to an additional 14 cents of every dollar back in your pocket when the same income is earned passively instead of actively."

Think about that - keeping 14 percent more of your hard-earned income!

Three smart moves for passive income are:

• Dividends
• Options
• Real Estate

 While once wildly popular with investors, there are still some companies that pay dividends to their shareholders. While taxed, these dividends are taxed at a lower rate than many active income rates.

Option...

After more than 25 years in the cockpit, Captain Vince Kramer recently hung his wings up. Like so many airline pilots these days, he took an early retirement package from a major airline.

Here he offers some insight into how he found a passion and is pursuing it and hopes to inspire pilots facing furloughs and displacements to find their passions as well.