ISA shares and shares are the right platform for long -term investing. It can also make it a convenient way to obtain passive income by investing in dividend actions.

It can be extremely profitable for an investor throughout your life.

To show how you can do it, I will go through an example of someone who puts £ 20,000 to work in 50 years. The first half of this period concerns an boost in ISA. The second 25 years include attraction of passive income each year, without touching capital.

For one investment worth 20,000 pounds today this passive income can add over 228,000 pounds between 26 and 50 plan.

Using time to your favor

Despite the enormous total income, the technique here is basic.

For 25 years, the investor combines ISA shares and shares, focused on an average annual rate of 7.5%. This should boost the value to just below 122,000 pounds.

By investing at 7.5% profitability, the annual stream of passive income would be about 9 148 GBP. Over 25 years accounts for 228 688 £.

Thus, for a one-time investment worth 20,000 GBP today, in the next 50 years the investor can repeatedly boost the value of its shares and shares of ISA-I and earn almost 229,000 pounds in passive income.

Finding the right shares for purchase

I do not think that the 7.5% of the complicated annual growth rate (including all share prices and dividends) is too arduous to achieve.

Even by ignoring share prices (or falls), 7.5% dividend profitability from a diversified blue chip portfolio should be possible to achieve on today’s market.

Thinking with a ten -year perspective sharpens the mind when it comes to assessing whether the company simply passes a few years or has a long -term long -term success.

As an example, one share, I think that investors should take into account long -term perspectives of passive income Legal and general (LSE: LGGE).

. FTSE 100 The financial service giant operates in an investment space directed at retirement. I see it as a enormous market, resistant and will probably remain this way.

Thanks to a sturdy brand, a enormous customer base and a well -exhausted business model, a long -established company is a significant cash generator. This helped him raise the dividend to action annually in recent years. Currently, it aims to 2% annual boost in payment.

The dividend performance is already 8.5%now, so the planned annual boost means that prospective performance is even more lucrative.

However, dividends are never guaranteed. One risk that I see for legal and general are uncertain stock markets and a indigent economy that hurt investors. If they draw funds from Legal & General investment products, this may harm the company’s profits.

However, from a long -term perspective, I see that participation is worth considering.

Making bright choices

The first first step to unlock such long -term passive income streams is the appropriate shares and ISA shares.

Fees and fees can consume refunds, but fortunately many different options are available on the market.