What is the best way to increase passive income?

brocklee

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Jul 15, 2019
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I have been trying to increase the amount of passive income but I’m not sure what’s the best method out there. I have been thinking about different investments such as index funds, robo-advisors or a high-interest savings account. I have seen good robo-advisor options such as Acorn or Wealthfront and I’m still deciding. I also came across Ally or Beam giving the best interest rates out there.

But since there is always a risk to investments, I am planning to use either Beam or Ally as a high-interest account. Looking for any advices! Thank you!
 

MoreSuccess

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I'd say split into both, cash account with interest for emergency savings you might need on short-notice, and the rest in a safe index fund. I've been in a large cap index fund for years and has been a good choice. Your age matters here too. The older you are, the more caution and readiness to bail out of the market quickly is needed. if you think it's going into a long-term correction. If you're young then you can ride it out even if it last for years. And the younger you are, the more you'll take advantage of the principle of dollar cost averaging.