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Kenneth Chang

Investment Dictionary


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Passive Income

 

Passive income is an earnings that person receives consistently for a long term from some stable sources. One and most probable source of passive income may be income from investment. 

 

For example, if a person wants to get $2000 every month and low risk annual interest rate in the markets is equal to 5% (which is highly probable) then he needs $480k of capital for investments.

 

Also there might be other sources for passive income: property rent, royalties, dividends from main business and other.

 

 






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