Blog
How Much Money Do I Need To Be Happy?
How Much Money Do I Need To Be Happy? How Much Money Do I Need To Be Happy? How much money do I need to be happy?This is a great
March 10, 2023
Can I Invest In My ISA For Passive Income?
Can I Invest In My ISA For Passive Income?
Is a common question that many ask when it comes to finance.
The answer is MAYBE – but it depends on your objectives.
If you are planning to trade/stock pick your account then maybe you CAN.
But this requires immense skill AND the time to do it.
If you’re time poor (as most of us are) then maybe this is not viable.
Most people will be investing use a “Buy and Hold” strategy.
In which case we want our portfolio to COMPOUND.
Compounding is one of those things that we often struggle to appreciate fully.
Compounding is the premise that certain things grow exponentially faster with time rather than linearly.
If our portfolio doesn’t compound then we can never hope to retire.
Therefore the MORE it compounds is the sooner we reach financial freedom.
Therefore, IF you use your ISA for “passive income” then you are INHIBITING your portfolios ability to compound.
Most would consider using the dividends of a stocks portfolio for these purposes.
Typically dividends yields are 3-4% – if we use 10% as a good rough metric of what can be attained from a fully equities portfolio…
Then its definitely worth looking at the effect on your eventual retirement pot using the graph below.
So the answer to the question Can I Invest In My ISA For Passive Income? is this:
YES – but it depends on your investing style and/or it may mean that our financial freedom date is not as soon as we’d like.
Fun fact for the day.
*Not Financial Advice
Disclaimer: The content on this blog is meant for informational purposes only and does not constitute financial advice. Readers should seek guidance from a professional financial advisor before making any investment decisions.
Have you got your NHS Pension checklist yet?
Enter your details above to receive a link you can use to download your FREE checklist
Read More Blogs
Blog
Entrepreneurial Dentist Pioneers New Financial Education Platform
Entrepreneurial Dentist Pioneers New Financial Education Platform Entrepreneurial Dentist Pioneers New Financial Education Platform Dr. James Martin leverages his dental acumen to fill a niche in financial education, launching an
March 20, 2024
Blog
What Factors Do We Need To Consider When Investing?
What Factors Do We Need To Consider When Investing? What Factors Do We Need To Consider When Investing? Fundamentally we can actually distil the forces that govern our success in
November 17, 2022
Blog
So What Is Inflation?
So What Is Inflation? So What Is Inflation? Inflation in a nutshell is a measurement for the rate at which everyday real-world prices increase over time. Its specifically a measurement
December 8, 2022
Blog
What’s Holding Us Back From Earning More?
What’s Holding Us Back From Earning More? What’s Holding Us Back From Earning More? Think about wealth like this – how can we know what our options are until they
April 6, 2023
Blog
The Cost Of Doing Nothing
The Cost Of Doing Nothing The Cost Of Doing Nothing It’s a common and important query.Let’s compare: (!)Imagine if there was an investment that…. Is tax free Cannot be taken
August 11, 2023
Blog
How Much Money Do I Need To Be Happy?
How Much Money Do I Need To Be Happy? How Much Money Do I Need To Be Happy? How much money do I need to be happy?This is a great
March 10, 2023