What is the portfolio reception?
Portfolio revenue concerns money raised from investments such as stocks and bonds. The portfolio revenue is one of the three main types of income that individuals can earn. For most people, portfolio income plays an important role in retirement.
Active, passive and portfolio revenues are three main types of income that most people have. Active income is an income that a person earns from his work or work he has to do physically. If a person stops doing a job, the active income stops. Passive income
concerns the income that is earned automatically. If a person stops working, the income is still coming. This type of income can be obtained from license fees, for example, in a book or rent rental income.
In the end, the revenue from the portfolio income obtained from the money that has been invested in things that pays the return. When a person invests in shares, bonds and mutual funds, his group of investment is called portfolio. This May portfolio to be kept in one brokerage company or in several mediation companies, or can even be kept in 401K established by an employer.
These investments in the portfolio earn income - or return on investment - in several ways. Investments earn revenue if shares, bonds or mutual funds increase. Interest can be obtained from investment in the case of investment in bonds, such as municipal bonds in which the investor buys government debt and the government pays him back with interest for the rate.
In the end, investments can earn revenue through dividends. Dividends are money paid by the company in which the company shares some of its profits with shareholders. Dividends are paid on the basis of sharing. For example, the company can pay a dividend of $ 0.06 USD (USD) per share.
When investment makes money, investments are growing. Ideally, the investment of Should is growing at the speed. This money, which is earned every year, is considered an investment income.
retired may depend on their investment income within their regular monthly income. Ideally, most experts suggest that they can only live from investment income and not touch the invested director. If the principal from the account is removed or reduced, it reduces the amount of money invested, leading to less interest income, because there is less money to earn this income.