£9,000 in savings? Here’s what I’d do to turn that into a £1,220 monthly passive income

There are multiple ways that investors can try to make an excellent passive income. Buying property and putting money into savings accounts are two traditionally popular methods. Peer-to-peer lending is also growing rapidly among those seeking a second income. I think building a portfolio of UK shares is the best way to create a supplementary income stream, however. This method doesn’t require huge upfront costs like property investment. I am also likely to make a better return than I would from a simple savings account. History is not always a reliable guide of what to expect. But with the right strategy, I could make an average annual return of up to 9.3% by buying British stocks. This in turn could provide me with a healthy passive income for retirement. If things go to plan, a £9,000 lump sum investment in UK stocks today could eventually provide a £1,220 monthly passive income. Here’s how I’d aim to achieve this. My initial step would be to open a tax-efficient financial product to hold my shares. In the UK, we are talking about either an Individual Savings Account (ISA) or a Self-Invested Personal Pension (SIPP). The £20,000 annual allowance on an ISA is...

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