Passive income from action and shares sounds great, right? But so many Naysayer people had all the reasons why it would be just a dream of a pipe.

sadasda

I can’t cover all their claims. But today I want to stand up to several popular ones.

Myth 1: it requires a lot of money

Some ideas for passive income can really cost a lot of money. Rental of real estate is common, but this means having enough cash for real estate or taking a gigantic mortgage. In fact, it may not even be true and I will come back to it.

The stock exchange is only for well -crowded investors, right? Well, no. I just conducted a quick online search. And I see ISA with shares and actions BellWe can invest only 25 GBP per month or make a one -off transfer of 250 GBP. This is not unusual and this is not a recommendation, it’s just the first I found.

Other ISA platforms are similar. In addition to the fact that they cost very little, they are straightforward to open. The more we can invest, the better. But we can really start with modest amounts of money.

Myth 2: it’s very risky

The thought of putting our money into a company that breaks is terrifying. This can happen, but we can significantly reduce the risk.

All we have to do is consider shares on the stock exchange, such as Ishares Core FTSE 100 UCITS ETF (LSE: ISF).

But don’t be afraid, the name is more complicated than the thing itself. It is only a rotational fund (this is what the bit of ETF means) and the cash onto the cash on FTSE 100.

Over the past five years, the price of Tracker shares has increased by 51%. This is a shade below 53%, which was managed by Foota. And when we consider the modest fees of the fund, this is almost a blow.

Over the past 20 years, FTSE 100 has returned an average of 6.9% per year. If this is continued, I think investors should expect something similar from following Ishares. And this, submitted for several decades, can ensure a nice passive income.

Of course, the tracking fund shares the general market risk. And we can lose money on it when the market falls. But diversification should mean a much lower risk than on individual stocks.

MIT 3: It requires talent

Investing on the stock exchange for a long time. We must understand all kinds of great words and make complicated financial amounts to have a clue, right? Well, this myth was also broken up. I think it is quite clear that investing in a uncomplicated tracking fund does not require egg brains.

Considering the investment fund, which disseminate cash using specific strategies, is a common next move. Do you want income from British dividend actions? Look for one that does it. No genius is required. Oh, do you remember this thing in real estate income? There are also investment funds that do this.

And there is a bonus – the more we expand our investment horizons, the smarter, as we can deal with.