Financial freedom is when your money works hard enough for you that working becomes a choice, not a necessity.
So, how much do you need to invest every month to build an investment portfolio capable of generating Ksh 50,000 in monthly passive income?
Using an assumed annual distribution rate of 10%, equivalent to approximately 0.8333% per month:
Ksh 50,000 ÷ 0.8333% = Ksh 6 million
That means your target investment portfolio is approximately Ksh 6 million.
If you give yourself 10 years to build it, you could invest approximately:
Money Market Fund
Assumed return: 10% Net Annually
Monthly investment: Ksh 29,500
Fixed Income Fund
Assumed return: 15% Net Annually
Monthly investment: Ksh 23,000
Special Fund
Assumed return: 18% Net Annually
Monthly investment: Ksh 18,200
The higher the investment return, the lower the monthly contribution required.
However, higher potential returns usually come with higher risk.
Your investment choice should match your goals, investment period, liquidity needs and risk tolerance.
These returns are assumed averages for illustration purposes. Actual returns may rise or fall and are not guaranteed.
Now, here is the biggest question:
Which Investments Would I Recommend Under These Three Categories?
WhatsApp me “PASSIVE INCOME” on 0703 472 299.
I will share my recommendations and guide you through the investment process.
Financial Freedom
Alex Mwangi | The Cent Warrior | 0703472299
