Of the three types of income recognized by IRS (Internal Revenue Service), passive income is the income resulting from cash flows received on a regular basis. Passive income can be derived from renting property or dividends from any investment. Taxes are levied on passive income. Creating passive income is a no-brainer.

Generally, an investor purchases equity stocks through an online brokerage firm or directly from a broker. However, some investors in order to save brokerage fees, purchase stocks directly from the company. Buying stocks directly from the company is called a direct investment plan. Investors have their own reason for investing directly in a company such as physical possession of the stocks, eliminating brokerage services or broker, low cost, and various other reasons.

401 (k) is a retirement program initiated by the government but sponsored by one’s employer. It can be referred to as a voluntary contribution from an employee’s paycheck before the taxes are deducted. 401 (k) allows an employee to save for retirement and invest the money contributed by one’s employer.

Is it possible to grow your money with just USD 1000? Yes, money can grow as fast as you can invest. However, mere investment is not enough. Investment has to be accompanied by planning and a bit of research. Since money does not come easily, it is necessary to make the money grow in the fastest and the best possible way.

One major question every retiree has is, “what about investments after retirement”. Investments should not stop even after you retire. In fact, you can shuffle your investments in such a way that your income would not be affected even after retirement. After retirement, you will have all the free time in the world, and you would want investments that would allow you to enjoy life while helping you keep up with your medical expenses.

A real estate investment is everyone’s prized possession. It secures our life to an extent that when everything fails, we have a property, which can fetch us some dollars. It is often seen that tenants who are tired of staying in rented flats, look out for real estate investment to own a dream house.

One cannot invest on the basis of mere gut feeling or instincts. There must be some underlying logic, reasoning, or calculation to determine the nature of an investment. An average investment is classified as inexpensive or expensive. However, to seasoned investors, numbers and costs matter. They make investment decisions on the basis of stock valuations and ratios derived from investments.

Investment is crucial for individuals as well as families. As you start a family, your responsibilities come to the forefront. To tackle these responsibilities, you must start investing at the earliest. There will be plenty of milestones in your family life, such as buying the house of your dreams, hospital expenses, the birth of a child, and college expenses.

Preparing yourself mentally for retirement is a sound idea. Pre-retirees have the time to prepare themselves financially for their retirement day. Pre-retirees are those who are in their 50s and 60s and are going to retire a few years down the line. For pre-retirees, this is their last chance to take account of all the investments that they will require upon retirement.

Some youngsters start investing as soon as they start working. Investing early is beneficial and once you get the hang of it, there is no stopping. When you start investing at a young age, there are a lot of ideas and future plans while making an investment. Mistakes are inevitable and they are a part of your investments.

Dividends on investments are like the cherry on the cake. Investors look forward to dividends first and the principal amount later. Dividends indicate a steady flow of income quarterly, biannually, or annually. Some investors cash in their dividends, while others reinvest them to either purchase new stocks or funds. Stable and profit-yielding companies pay good dividends to keep their shareholders happy.

Among the various types of investors, such as risk taking, conservative, and growth investors, the latter believe in an investment strategy that focuses on capital appreciation. Growth investors invest mainly in companies that give them an above-average growth. Growth investment funds have diverse portfolio stocks that focus only on capital appreciation, regardless of dividend payout.