In the ever-evolving world of investment, a compelling strategy is emerging for those seeking passive income. By allocating $75,000 in a Tax-Free Savings Account (TFSA) towards the Vanguard Growth ETF Portfolio (TSX:VGRO), investors can potentially secure steady, low-cost growth. The approach, suitable for individuals with a moderate risk tolerance and sufficient TFSA room, offers an intriguing proposition. The Allure of the Vanguard Growth ETF Portfolio The Vanguard Growth ETF Portfolio is a well-diversified fund that holds a mix of Canadian, U.S., and international stocks, along with a small allocation to bonds. This diversification is a cornerstone of modern portfolio theory, which suggests that spreading investments across various assets can help manage risk and enhance returns. The fund’s focus on growth stocks is another appealing aspect. These are shares in companies expected to grow at an above-average rate compared to other firms in the market. While they may come with a higher risk, the potential rewards can be substantial. Pairing Growth with Income: Middlefield Real Estate Dividend ETF To further bolster this investment strategy, consider pairing the Vanguard Growth ETF Portfolio with the Middlefield Real Estate Dividend ETF (TSX:MREL). This ETF concentrates on monthly income, offering a diverse portfolio of real estate investment trusts (REITs) that yield a high 7.55%. Based on the current share price and recent distribution, investors could potentially receive a quarterly payout of $2,025, translating to approximately $465 per month in tax-free income. This income stream can provide a financial cushion and contribute to long-term wealth accumulation. A Calculated Move Towards Financial Freedom Investing in the Vanguard Growth ETF Portfolio and the Middlefield Real Estate Dividend ETF is not just about financial gain; it’s about creating a path towards financial freedom. By building a portfolio that generates consistent passive income, investors can free up time and resources to pursue their passions and live life on their terms. As with any investment strategy, there are inherent risks, and it’s crucial to conduct thorough research and consult with financial advisors before making decisions. However, for those willing to take calculated risks, this approach could be a significant step towards achieving financial goals. The allure of passive income through investment in the Vanguard Growth ETF Portfolio and the Middlefield Real Estate Dividend ETF is undeniable. By strategically allocating funds in a TFSA, investors can potentially secure steady growth and substantial monthly income. This approach offers an enticing proposition in today’s complex financial landscape, providing a beacon of hope and a path towards financial independence. Investors are reminded that while this strategy presents promising potential, it is essential to understand the associated risks and seek professional advice. However, with careful planning and consideration, this approach could indeed be a stepping stone towards a more secure and prosperous financial future. Note: This article does not constitute financial advice. It is intended for informational purposes only, and readers should consult with a financial advisor before making any investment decisions.
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