Home » Handbook to Financial Independence: Using Passive Income to Achieve Financial Freedom by Jonathan Middaugh
Handbook to Financial Independence: Using Passive Income to Achieve Financial Freedom Jonathan Middaugh

Handbook to Financial Independence: Using Passive Income to Achieve Financial Freedom

Jonathan Middaugh

Published
ISBN :
Kindle Edition
39 pages
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 About the Book 

Financial independence (FI) is about opening up possibilities. If you are financially independent, you can choose exactly how you want to spend your time. You can volunteer, have more family time, travel the world, or start a business, just to name aMoreFinancial independence (FI) is about opening up possibilities. If you are financially independent, you can choose exactly how you want to spend your time. You can volunteer, have more family time, travel the world, or start a business, just to name a few of the many options.Financial independence is achieved when your core expenses are covered by passive income. Passive income can be generated by investments or earned through content-based sources such as blogs, e-books, and so on. Handbook to Financial Independence is a straightforward guide that gives you the tools, ideas and motivation to reach FI. The most important thing you can do for your financial future is to get started today!Below is an excerpt from the book that shows the type of analysis that “Handbook to Financial Independence” digs into:“…If Mr. Workhard wants to earn $25,000 of free cash flow from his Dividend Growth Investing (DGI) portfolio, he could accumulate a 100% DGI stock portfolio worth $685,000 with a dividend yield of 3.65%. This would be a great option, and the best part is that he will likely get organic dividend growth of ~7%, depending on the stocks in his portfolio. However, Mr. Workhard could have achieved FI with a portfolio of significantly smaller value if he included bonds. For example, a portfolio of $450,000 of DGI stocks yielding 3.65% and $145,000 of bonds yielding 6% would generate $25,000 annually, for a total portfolio size of $595,000. The downside of this strategy is that future income growth is sharply reduced. If the DGI stocks are growing dividends at 7% and the bonds naturally have no income growth, then the total income growth rate is roughly 5.3%. This is still enough to handily beat inflation and even increase purchasing power, but it is not nearly as dramatic as 7% income growth…”