Image source: Getty Images Legal & General Group (LSE: LGEN) is a passive income superstar. The insurer, asset management and pensions specialist boasts the highest trailing yield on the entire FTSE 100, at just over 8.5%. That would double an investor’s money in nine years, even if there was no share price growth on top. But there’s a catch. There hasn’t been much share price growth lately. Should investors be worried? The Legal & General share price hasn’t grown over the last decade, standing roughly where it was in December 2015. Given the income, long-term investors should still be nicely…
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Image source: Getty Images Over the past three years, Rolls-Royce (LSE:RR) shares have mounted the sort of comeback story normally reserved for Hollywood movies. It has certainly benefitted my portfolio, reminding me that FTSE 100 stocks can also sometimes serve up Tesla-type returns. However, while I’m still bullish long term, the market appears well up to date with the Rolls-Royce story. And with the stock trading at 33 times forward earnings, I reckon there are more attractive opportunities elsewhere in the blue-chip index. Here are two that I currently prefer over Rolls-Royce. Diageo The first is Diageo (LSE:DGE). This is…
The active asset management industry has reached a breaking point. After decades of thriving on high fees and growing assets, active managers now face relentless margin pressure. Passive investing has eroded revenues, while the cost of producing alpha remains stubbornly high due to large teams, complex data needs, and heavy infrastructure. While some firms have managed to trim absolute costs through traditional cuts, these savings rarely keep pace with the relentless margin compression. With additional burdens from regulation, cybersecurity, and technology upkeep, firms are caught in a structural squeeze: falling fees and weak inflows on one side, rising or inflexible…
Image source: Getty Images When working out the passive income potential of a Stocks and Shares ISA, it helps to understand the difference between the ‘accumulation phase’ and the ‘withdrawal phase’. The biggest difference, in my view, is the huge gulf in targeted returns. That’s because investors still building up their ISAs in the ‘accumulation phase’ can target a higher rate of return. Many investors aim for 10% as a rule of thumb. This is a fairly realistic goal because it is roughly in line with historical returns – but there’s a catch! The ups and downs of the market…
Image source: Getty Images When working out the passive income potential of a Stocks and Shares ISA, it helps to understand the difference between the ‘accumulation phase’ and the ‘withdrawal phase’. The biggest difference, in my view, is the huge gulf in targeted returns. That’s because investors still building up their ISAs in the ‘accumulation phase’ can target a higher rate of return. Many investors aim for 10% as a rule of thumb. This is a fairly realistic goal because it is roughly in line with historical returns – but there’s a catch! The ups and downs of the market…
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Image source: Getty Images If you’re thinking of investing in dividend shares for retirement, you’re not alone. Thousands of Britons do exactly that, with the aim of achieving a steady income stream to supplement their State Pension. The question is, where and how to start? Many beginner investors feel overwhelmed by the sheer number of options available. For many, a lack of clarity and understanding leads to fear of losses, and they give up. But with careful planning, patience and commitment, the risks can be minimised and the gains optimised. A balanced approach As with everything in life, picking the…
Image source: Getty Images Earlier this week, I asked ChatGPT a simple but important question: what are the 10 best UK shares to invest in right now? I wasn’t looking for short-term trading ideas or speculative punts. The aim was to identify a balanced group of UK-listed businesses that could deliver a mix of dependable income and long-term growth. It’s worth noting that this list is more indicative of how ChatGPT works than a definitive list of shares to buy. I’ll break down why seemingly smart ‘insights’ often miss critical nuance. Predictable choices Admittedly, ChatGPT made a good effort at…
Image source: Getty Images Want to earn a second income without taking on a second job? In fact, there are multiple ways people earn a second income – and working more hours is only one of them. Another is building a portfolio of dividend-paying shares in well-established, profitable companies. Building up serious income streams That could turn out to be a lucrative approach to setting up a second income, for someone who is willing to adopt a long-term approach. If someone put £20,000 into shares today and was able to compound the portfolio’s value at 8% annually, after 35 years…
We live in the golden age of financial access. With a smartphone and a 4G connection, you can buy a piece of India’s top companies or a global index fund while waiting for your coffee. But there is a dark side to this democratisation.About the author: Ajay Pruthi is a fee-only SEBI-registered investment advisor. He can be contacted via his website plnr.in. Ajay is part of the freefincal list of fee-only advisors and fee-only India.Two silent enemies are destroying retail investors’ ability to create long-term wealth: Convenience and Comparison.While we blame market volatility for our losses, the real culprit is often the Sell button…