Where cash flow is defined as monthly income, investing will not increase your cash flow. Or at least not in the way that many people think it does.⁣ Which makes that notion a load of turkey really.⁣ 🙃

One of the most common questions I see when it comes to investing is “How can I invest in my ISA/Pension for passive income?“⁣. By passive income, most are referring to continuous income that appears in our bank account month on month.⁣ The ideal is that this outcome will occur as soon as possible.⁣

When we invest into ISA/Pensions usually we only seek to derive cash flow from these after many decades. The long term time horizons of these accounts mean they will not be able to provide that cash flow in the near ⁣term (for most). Pensions can only be accessed when we reach retirement age. So they wont give us any cash flow until then, which for most people would rule these accounts out when it comes to instant cashflow.⁣

This is why, we should always at least question the wisdom of the gaggle on this one 🦃🦃🦃

On the other hand, you can withdraw from a Stocks and Shares ISAs at any time.⁣ But if you’re using a buy and hold long term strategy (which 95% of people are)⁣, the most practical thing to do to is to not touch (sell) these investments for many decades. Mainly because it inhibits the ability of your investments to compound, meaning we are jeopardizing our retirement plans⁣. (There’s actually a host of other reasons why this is generally not a good idea too – I'll save these for another post)

So if you really want more income, which could mean you have the finest of birds 🥰 on the Christmas dinner table 🍴 this year?

Either boosting your income from your clinical dentistry, or investing within assets that give you cashflow (such as property or perhaps a business) are more likely to achieve this. Of course, there are some exceptions to what I have said above.⁣ And I HIGHLY recommend reading into this further/getting some advice if you feel uncertain.

However this certainly provides some direction, and maybe some food for thought. 🦃