How to Build a Bulletproof Monthly Passive-Income Portfolio With Just $1,000

If you’ve only got $1,000 on hand, that’s fine! Here is how to make a top-notch, passive-income portfolio that could stand the test of time.

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Canadians seeking out a passive-income portfolio don’t need a lot of cash to get started. Even just $1,000 can put you on the right path and create a massive income stream that will set you up for life!

In fact, that $1,000 would be best suited for your Tax-Free Savings Account (TFSA). The TFSA will allow you to withdraw that cash whenever you need it, such as in an emergency.

So, while $1,000 may not sound like a lot, let’s see how much we can make.


I’m sure that you’ve already come across many articles that describe diversification as the best start to any portfolio. And it’s true! But let’s get to the basics of diversification when you’re just putting $1,000 to work.

First off, right now, there are great interest rates for Guaranteed Investment Certificates (GIC). In this case, it would be a great time to put some of that cash towards the fixed income that comes along with these GICs. So, let’s say you put $500 towards that for the next five years.

From there, you’re going to want an investment that gives you a large basket of investments, all with one click. And that comes from investing in exchange-traded funds (ETFs). You’ll simply need to find one that offers low costs from maintenance fees.

Finally, top it off with some growth. That could come from an ETF, but I have another option that could see your passive income climb quite high over the next few years and with very little risk.

Investments to consider

First off, let’s look at the ETF to consider. If you want safety and passive income that will last a lifetime, consider investing in Vanguard S&P 500 Index ETF (TSX:VFV). The VFV ETF tracks the performance of the top 500 companies on the S&P Index. And this is a huge benefit to investors.

Over time, the S&P 500 has proven to climb higher and higher, which we’ve seen even during this period of economic uncertainty. These large companies are some of the strongest on the market, providing you with a safe 1.08% dividend yield and 12.85% in returns year to date.

As for a strong growth option, I would look to Topicus (TSXV:TOI). Now, this company is relatively new but is still managed by Constellation Software. CSU stock has been around since 1995 and has proven its worth as a company that can find essential, niche software companies across North America. It then snaps them up, cornering the market in essential areas. And now, Topicus stock is doing the same, but over in Europe. Shares are up an astounding 42% in the last year and only have more room to run from there.

Bottom line

That $1,000 can be put straight to work and should see even more growth in the years to come. If you’re looking to create passive income from returns and dividends, these are your safest options — ones that will provide you with the growth and income you need not only to survive but thrive. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in The Motley Fool has positions in and recommends The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

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