Passive income

After a period of deprivation and frugality, Luise has entered a phase of greater financial freedom. All her funds are in an ETF portfolio that averages a 7% return in the long term. Unfortunately, the 7% return is not constant and fluctuates significantly. Luise plans to withdraw a certain amount every month, either through dividends or by selling shares. Before I continue with a financial-themed story, I want to clarify that I’m not a financial expert....

How can you generate passive income from return on stock market investments or dividends*Dividends are of course also a kind of investment income. I just wanted to mention them again because they play a special role in this article. and when does that make sense? In addition to explanations and anecdotes, I also present mathematical formulas to answer this question🥳*That's a smiley celebrating the existence of math in this article.....