With £20k, here’s how I’d target a £23,800 passive income every year.
Fact one, if u intend to use the 4% rule (see below) it’s not strictly passive income, because u are relying on the market not to crash and we all know it does on a regular basis.
If u invest 20k at 7% compounded after 40 years your dividends would equate to £23,800 a year.
Of the course over 40 years there may be some years u will not be able to re-invest at 7%, currently u can beat the target income but the total is not in doubt just the time frame.
GetRichSlow
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