Why A Passive Income Is Not Just For Retirees

While generating a passive income from an investment portfolio is a necessity in retirement, it can provide numerous benefits at any stage in life. For example, it could offer the chance to reinvest in stocks at more opportune moments such as during bear markets. Or, it could help to pay the cost of a home, or other regular outgoings.

As such, it could be worth concentrating on dividend stocks to a greater extent. Through focusing on yields, dividend growth prospects and the financial strength of a company, it may be possible to generate a surprisingly high passive income over the long run.

Passive income benefits

As mentioned, a passive income could prove to be a useful ally for investors of any age. In fact, it could become increasingly appealing over the coming years. The world economy has enjoyed uninterrupted growth since the financial crisis, but this now may be set to come to an end.

A combination of factors that includes rising US interest rates, a slowing Chinese economy and weaker economic data emerging from both countries could lead to a fall in stock prices over the medium term. An investor who is generating a passive income from dividend stocks

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