Describe the form and impact of passive income.
Form of passive income :
Some form of passive income comes from money in the bank or your investments. But the fact that you are worried about taking a knock when the interest rates are reduced. How fickle your passive money is, and you know, first of all, they want to tell you that you need to diversify; you need to do a lot more things and cover yourself with additional passive money. So you know, it’s a chap that everybody falls into when they retire; they get a lump sum, they might get a payout from a company. They might get the highest portion of their pension payout, and the first thing they do is they going to put the money in the bank. Which, by the way, is usually an interest rate, or they will put it into some equity fund.
They will be getting this amount back from borrowing interest rate movements. The problem is that you limit it into one basket of investments right to you into one form of passive income. So they advise you the diversification you much on the spot where it comes down to diversify and most people what they are used …
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