<h1>How to Generate $500 a Month in Passive Income by Age 18</h1>
<p>If you are 18 years old and want to generate $500 a month in income for the rest of your life, here are the four things you need to do right now.</p>
<p>I'm Tyler. I'm a former financial advisor and portfolio manager, and now I make financial content for free so that you don't have to pay for it.</p>

<h2>1. Open a Brokerage Account</h2>
<p>Open a brokerage account today through <strong>Fidelity</strong>, <strong>Schwab</strong>, or <strong>Vanguard</strong>.</p>

<h2>2. Fund Your Account</h2>
<p>Fund that account with an initial <strong>$500</strong> investment and invest it in a low-cost index fund like <strong>Fidelity's FXAIX</strong> or <strong>Vanguard's VOO</strong>.</p>

<h2>3. Continue to Invest</h2>
<p>Continue to fund that account with <strong>$25 a week</strong>. By the time you're 45 years old, that account will most likely have grown to just under <strong>$171,000</strong> because you took advantage of two decades of compound growth.</p>

<h2>4. Transition to a Dividend Fund</h2>
<p>Now sell the S&P 500 index fund, pay approximately <strong>$11,000</strong> in capital gains tax, and buy a more stable dividend fund like <strong>BlackRock's MADVX</strong>. Now you can enjoy about <strong>$500 a month</strong> in income for the rest of your life without ever having to lift a finger or touch the principal.</p>

<p>If any of this is helpful, like and follow, and I'll keep trying to get you one step closer to where you need to be.</p>