By VD
Can you make an income from investing? The simple answer to this question is YES. But it takes patience, courage and capitalising on the right opportunities in high growth markets.
Is there more to life than working hard, for 40 hours a week, for 40+ years? Investing is a way to make money work harder than you, for you. In this article we will explore the options you have to make an income from investing wisely, and some success stories along the way.
Financial services company Hargreaves Lansdown prove their success from a monthly income investment option:
“Anyone who had invested £10,000 at launch in 2002 and elected to take the income would have received over two-thirds (£6,862) of their initial investment back in income alone, and their total annual income has risen almost every year. In addition, their capital would have also grown to over £19,000.” [1] This is a prime example of the kinds of returns that are generated from investing early in a pre-IPO, private company.
Investing to create an income is a sensible form of managing your wealth as it can help support and fund your lifestyle gradually.
Whatever your reason for investing is, whether that be to build a healthy retirement fund – which is becoming increasingly more important now life expectancy is increasing. Alternatively, you may wish to fund your children’s future endeavours whether that be university fees or a deposit for their first house. If you’re working hard but unable to fund your life goals from one revenue stream, investing in emerging markets that offer huge growth as well as paying attention to diversifying your portfolio is the answer to financial security and success.
According to Passive Income MD, Researchers have even pinpointed a statistic: millionaires, on average, have not just one, but seven streams of income. [2] If you’re aspiring for wealth and stability, you need to capitalise on new ways to generate an income. This could be by:
- Choosing an opportunity that produces dividends for its shareholders
- Invest in mutual funds (pooling your money with the money of other investors and investing it in a portfolio of other assets (e.g., stocks, bonds). This means you’ll be able to invest in portfolios that you wouldn’t be able to afford alone because you’re investing alongside other investors. [3]
- Money market accounts and certificates of deposit (CDs) are safer investments that can be used for monthly income. [4]
Key tips for investing to make an income
Be diverse, be cautious and pay attention to risk, have realistic and timely expectations. If you think by investing you’ll secure a quick payback, think again. You need to invest long term and be prepared for market buoyancy.
The cannabis industry, for example, has witnessed successes and decline over the last few years but the UK’s cannabis market in 2021 has been deemed for huge success and has even been questioned by business-focused newspaper, City AM whether the EU should be envious of its position. Just this month, two medical cannabis companies made their UK stock market debut. Each has enjoyed profitable market opens, with stock prices soaring 232 and 506 per cent respectively since listing on the exchange. [5]
If you’re looking for the next investment opportunity that may help provide you with a regular income, visit www.jpdcapital.com/investors
JPD Capital is a fund-vehicle focused on medicinal cannabis, private equity opportunities across the seed-to-sale cannabis supply chain. This investment fund-vehicle grants investors exposure to a varied portfolio underneath one umbrella company, as well as mitigating risks with its portfolio diversification.
©FM
