Passive income is money that you earn without too much effort on your part. It does not include employment income or income you may derive from a side business that requires significant physical or mental energy.

Passive income should require little or no daily effort to maintain.

That being said, you do have to do some initial work to develop a passive income strategy and set it in motion. Some may think that passive income requires little or no effort to set up. However, it does require planning and often an upfront investment.

Long-term investing focuses on achieving a favourable rate of return over a predetermined holding period while ignoring short-term market volatility.

Attempting to time the market does not reliably lead to higher returns. It is time in the market that results in greater investment success.

Investing is something that should be part of your everyday life. It may be as simple as leaving your money in a company retirement plan or as complex as attempting to actively manage your own stock portfolio.

However you invest your money, there are common mistakes that most investors fall prey to but that you can easily avoid with proper planning and application.

When it comes to investing, it’s important to keep in mind that fees shouldn’t be the sole factor driving your investment choices.

Fees can certainly impact your overall returns and it is important to understand what the fees are and whether you are receiving added value for what you are paying. But fees should not be the only factor driving your investment decisions. Instead, it’s important to consider all of the relevant factors when making investment choices to ensure that you are making informed decisions that align with your long-term financial goals. Your goals should be the primary driver of your investment choices, not fees.

The purpose of investing is to maximize your returns. However, the more you make when you sell investments for a profit, the greater your capital gains tax. Thankfully, capital gains receive more favourable tax treatment than ordinary income and there are legal strategies to minimize your capital gains tax even further.