Can you live off of an eToro copy trading portfolio without further income?

Asked 5 years ago

I'm making big plans for early retirement here. Working on an assumption that I can copy trade with averaged out returns (over 6 years) of 4% per month. I currently copy about 6 PI's, all of them are roughly in that vicinity - some higher which might just be based on the crazy month we all were part of. Has anyone managed to do this (basically living off their eToro copy trading portfolio) with no other income?

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Andrew Moran

Monday, August 09, 2021

Technically, you could certainly generate a reliable income by copy trading on eToro.
But is this a wise maneuver?
The issue is that you need a return of as much as 8% off of your investments to survive, particularly when inflation is running as high as it is.
Moreover, the tax implications of liviing off your investments without additional income can be immense.
Like your investment portfolio, it is always a good idea to diversify your income streams.