I think one of the best ways to make a long-term passive income is by investing in FTSE 100 stocks. The UK’s premier share index is packed with companies whose proven business models and cash-rich balance sheets make them brilliant stocks to buy.
Stock investing can be a bumpy ride at times. As we saw during the Covid-19 crisis, even the most reliable and financially robust company can slash or cancel dividends, as well as slump in value.
However, history also shows us that a carefully created and well-diversified portfolio of shares can — over the long-term — deliver significant passive income streams.
Talking tax
Let’s say that I’m at the beginning of my investing journey. I have a decent £9,000 ready to invest in FTSE 100 shares, and plan to spend a few hundred pounds extra each month to boost my retirement pot.
The first thing I’d do is set up a tax-efficient Stocks and Shares ISA or a…
