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So, assuming you have a 7% rate of return investment vehicle (an average mutual fund historically, or a really generous annuity), you would need $171,000 in that account to receive $1000 per month.
So, the fastest way to passive income of $1000 per month is to have $171,000. How you get there is the hard part but not really anything relevant to passive income itself.
This would not necessarily guarantee you 1k per month. Investments can be up and down and you would need to sell shares to pull out your 1k so you would hope it is up every month. Honesetly the best way to do it using investment vehicles would be to invest in a dividend yielding mutual fund/index fund or a high dividend yielding stock 3-4% per quarter and get 4k/quarter which would essentially be 1k/month.
If you owned approximately 9k shares of VYM it would yield you about 4k/quarter.
I agree with others that said real estate (paid in full) is the best way to get you your 1k/month in passive income, but even that is not completely passive. If you want the full 1k you either need to do all maintenance/management yourself or own a piece of property that nets far more than 1k/month.
Dont live like an American. Seriously. Work hard, live frugally, and invest every dime you make after paying bills. Youll then have passive income. Dont spend it, reinvest it. Your passive income will grow exponentially. This isnt rocket science and we all know it is true, however to actually DO this is a different story.
^^^This^^^
It's all about your savings rate. The higher the percentage, the sooner you can walk away from paid employment.
A 70% after tax savings rate should see you financially independent in about 7 or 8 years.
A 50% savings rate will get you there after about 17 years.
The OP asked for the fastest way to wealth. Inheritance beats anything else.
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