Forget Cash ISAs and Premium Bonds: I’d buy the FTSE 100 for a passive income

first_img Image source: Getty Images Forget Cash ISAs and Premium Bonds: I’d buy the FTSE 100 for a passive income Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. See all posts by Rupert Hargreavescenter_img Our 6 ‘Best Buys Now’ Shares Rupert Hargreaves | Saturday, 18th April, 2020 Cash ISAs and Premium Bonds are a great way to save money for a rainy day. However, over the past few years, the interest rates on these products have plunged.Indeed, at the time of writing, the best flexible Cash ISA rate on the market is just 1.25%. Meanwhile, the annual prize rate for Premium Bonds is only 1.4%. It’s hardly worth getting excited about these minuscule rates of interest.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…And, with that being the case, owning the FTSE 100 could be a better option for your money over the long term.Buying the FTSE 100 for incomeThere are three main reasons why the index might be a better investment than Cash ISAs and Premium Bonds over the long run.First off, FTSE 100 stocks currently support a higher level of income. The UK’s leading blue-chip stock index has a dividend yield of 5.3% right now. That’s several times higher than the rate offered by the best Cash ISA on the market.In addition to this higher level of income, the FTSE 100’s dividend yield has more growth potential over the long term. The Bank of England base rate determines interest rates for Cash ISAs and Premium Bonds.On the other hand, company profits determine the index’s dividend yield. These tend to rise over the long term. As we’ve seen over the past 10 years, the same isn’t true of interest rates.A third reason why the FTSE 100 could be a better income investment than Cash ISAs and Premium Bonds is capital growth. As well as the income stream from the index, investors may also see the value of their investments rise.It’s not very easy to tell what sort of return the FTSE 100 could produce over the long term. However, as a guide, over the past 35 years, the FTSE 100 has returned around 7% per annum. That rate of return would be enough to double your investment every decade.The better buy Those are the reasons why the FTSE 100 could be a better investment for a passive income than Cash ISAs and Premium Bonds. While these two cash products have their uses, for investors who’re serious about generating a passive income, the FTSE 100 has much better income credentials. The potential for capital gains is also highly appealing.It’s quite simple to track the performance of the FTSE 100. All you need to do is buy a low-cost tracker fund, sit back, and relax. The fund’s managers will then do all the hard work for you.Investors can also own a tracker fund in a Stocks and Shares ISA. This means there’ll be no further tax to pay on income or capital gains earned from the FTSE 100 tracker investment.So, if you’re serious about generating a passive income, it’s worth taking a closer look at the FTSE 100. “This Stock Could Be Like Buying Amazon in 1997” I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.last_img read more

5 of my best shares to buy right now

first_img Zaven Boyrazian | Tuesday, 29th December, 2020 Click here to claim your free copy of this special investing report now! Simply click below to discover how you can take advantage of this. Looking for the best shares to buy right now? Although 2020 has been a tough year, it has created some exciting opportunities that I believe have mostly gone unnoticed.Best dividend share: Warehouse REITThe shift towards online shopping has caused popular stocks like Amazon to explode in recent years. However, few investors are paying attention to Warehouse REIT.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…All online retailers need storage facilities for their products. As it stands, the supply isn’t keeping up with the demand. Warehouse REIT is attempting to solve this problem by providing affordable, premium warehouse facilities for businesses.At the current share price, the stock is yielding 5.4% in dividends. This high yield, combined with the enormous potential growth makes it one of my best shares to buy right now.Best e-commerce share: dotDigitalIn my eyes, dotDigital works hand in hand with Warehouse REIT. The tech stock provides a cloud-based marketing platform to help businesses attract, retain, and convert customers. That’s quite different from operating a warehouse, but it serves the same e-commerce industry that grows with each passing day.In addition, dotDigital has been forming strategic partnerships with the likes of Shopify, Microsoft, and Adobe, giving it a significant advantage over its competitors.Best real-estate share: PersimmonThe UK population is growing, and with it, the need for new homes. Persimmon is the second-largest homebuilder in the country.While size is a good advantage, that’s not what has my attention. Persimmon operates in an almost entirely vertical manner. In other words, it is not reliant on third-party companies for core operations. Persimmon manufactures its own construction materials, has its own builders, and an in-house sales team. Having this level of control eliminate service fees, and grants the ability to eradicate almost all business inefficiencies.Best tech stock: Learning Technologies GroupOne critical requirement for any successful business is a talented workforce. However, with social distancing preventing people from meeting up, training staff has proven to be challenging. Learning Technologies Group has created a solution.The company provides a wide range of digital learning software designed to seamlessly integrate with client processes. Completing training courses from home makes the learning process more enjoyable for employees and reduces costs for the employer.Best gaming company: Keywords StudiosOne of my favourite shares in my portfolio is Keywords Studios. Gaming stocks have performed exceptionally well in 2020, primarily because everyone has been stuck at home and games are a great way to pass the time. But even without the influence of Covid-19, the gaming industry has been growing rapidly over the years.Keywords Studios provides specialist services to 23 of the top 25 game developers worldwide – including Activision Blizzard and Microsoft.Developing a video game can be a risky project. After all, if the final product doesn’t meet expectations, it can have a severe financial impact on the studio. Keywords helps minimise this risk by providing talent on a per-project basis, allowing its clients to retain a smaller permanent workforce.  Our 6 ‘Best Buys Now’ Shares Zaven Boyrazian owns shares in dotDigital, Learning Technologies Group, and Keywords Studios. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. 5 of my best shares to buy right now Image source: Getty Images center_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Enter Your Email Address 5 Stocks For Trying To Build Wealth After 50 See all posts by Zaven Boyrazianlast_img read more