12/07/2021
How do I earn passively with investments?
Here are two great ways to begin earning some passive income with investments:
1. Stocks and shares ISA
This is a great account for investors because growth and proceeds from aren’t subject to further tax. You can put up to £20,000 into a stocks and shares ISA each tax year.
Proceeds from investments in a stocks and shares ISA are not classed as part of your yearly income. So if you invest wisely, you can gradually build up a bigger stream of passive income that’s shielded from tax. (Please note that tax treatment depends on the specific circumstances of the individual and may be subject to change in the future.)
If you want a more stable source of income from your investments, you could look at something like dividend investing. This means picking companies that pay dividends to their shareholders. Investing this way can be less volatile when you’re no longer looking for growth and want a more steady stream of passive income.