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RE: Can You, Indeed, Build a Decent Passive Income with Stocks?
Can investing in stocks be called a passive income? Well, i believe stock is an investment and security for investors just the way jobs are securities for employees. One thing that devaluate investment earnings is inflation.
That means the stock market index increased 5.99 percent, while the inflation reached 3.13 percent p. a. (Per annum, or per year, on a yearly basis.)
2.86% can be a good return but will take about 34 years and 11 months to make a hundred percent off investment if all thing are equal.
1.0286^35=2.683. (+168.3 percent). But that return was without the dividends.
Other calculations (like by Mr. Shiller) are talking about 7-7.5 percent real return p. a. (See the second part of the post on Agelessfinance.com)
1.07^10=1,967 ==>> people needed approximately 10 years to double. In the long term and in average.