The idea of retiring early appeals to many people. Whether it is financially possible however, can sometimes be a very different question to whether it sounds attractive.
Instead of working myself, what if I could put my feet up and benefit from the hard work of staff at FTSE 100 firms like Vodafone and BP?
The answer is, I could. But how? My approach would be to build up passive income streams via a diversified portfolio of high-quality blue-chip shares.
Let me dig into the details of how that might work in practice.
Buying individual shares, not the index
The FTSE 100 index currently offers an average yield of 3.6%. One option would be simply buying into an index tracker.
But that would expose me to some shares I do not want to buy at all and others I think are overvalued. Instead, I would build my own portfolio of individual shares. That could also let me earn a yield well over 3.6% while sticking to large,…
