Post
Topic
Board Economics
Re: Reality of investments on practice
by
summonerrk
on 03/07/2025, 15:55:18 UTC
Have you ever had the perception passive investments in general (stocks, real estate funds...) generate a very low profit margin?

It stays around 0,6% monthly profit, what means you need 100,000$ invested in order to generate 600$ bucks a month.

For the average investor who is saving pennies or few hundreds of dollars every month on the best scenario, it will take a long time until he reaches somewhere in this financial world.

Therefore, for those who are starting their financial journey just now, maybe it's more advisable to allocate their funds on non-passive investments, what means they won't have a source of automatic profit, but at least they can pursue superior returns to maximize the potential of their money to generate further monthly income.

Once they manage doing this first step, then passive income investments start looking more attractive.

I think this approach is not bad, it all depends on what income is in your country. Firstly, in the country where I live, banks cannot provide such interest rates when investing in dollars. 0.6*12 is 7.2 per year, and this is taking into account that this investment is not in some country with a weak economy, where inflation is 30 percent per year. The main question is where to get 100,000 dollars, because this is even problematic for the CIS countries, not to mention African ones.