Passive income generates money with little to no involvement from you. Building strong passive income sources before you retire lets you supplement traditional retirement income sources such as 401(k) withdrawals or Social Security payments. While paying off debt prior to retirement and creating an early savings plan are two of the best ways to secure retirement years financially, you can also consider these four income ideas to bolster bank accounts post-retirement.
Invest in Rental Properties
Rental properties can generate consistent income for years, especially if you’ve invested in a number of assets over time. At first glance, being a property owner doesn’t sound passive—someone has to maintain properties, seek out rental payments and deal with tenant complaints. Buying properties early lets you build value in the rental business, making it possible to pay a property management firm to handle such issues once you retire.
Selling rental properties slowly during retirement is also a good source of funding; if you previously paid off any mortgages on property, selling a single property could fund your entire year. Just keep in mind with the real estate route that there are some risks inherent from the potential difficulty in selling a property not to mention being expensive. That said, if you do it right, real estate investing can be a nice way to supplement retirement income.
Build a Direct Sales Team
Direct sales are increasingly popular, and some products are conducive to sales via social media so you don’t even have to bother with home parties. Popular products include Avon, 31, Jamberry, Norwex and Paparazzi; with items ranging from jewelry and cosmetics to organic cleaning tools and cookery, it’s easy to find something that interests you.
Selling for yourself isn’t passive—it takes a lot of work. However, most companies offer the ability to build teams, placing representatives under yourself. When your team sells, you earn; a direct sales team could let you earn money with minimal work post-retirement.
Make sure you understand the requirements for maintaining your status with the direct sales company before you retire; some companies require more participation than others not to mention investment on your part.
Create Valuable Content
The Internet offers a number of income opportunities; if you can write or have fun or useful ideas to share, creating content now could pay off later.
One way to generate passive income from content is to launch a website or blog or publish through a revenue share service such as HubPages.
Another way to turn content into income is to publish your ideas or stories via eBooks; some authors earn thousands each year through previously published books.
Buy Dividend Stocks
In addition to being valuable themselves, dividend stocks provide you with access to regular payouts from the company associated with the stocks. Dividend payouts trend up or down following a variety of economic factors and are rarely enough to produce a complete income. Because dividends are consistent, though, they represent a strong addition to your passive income strategy.
Coupling passive income opportunities with savvy investing can help you create financial stability for your later years. Find out more about investing for retirement now, and start working to build wealth and income potential for post-retirement living.
Photo courtesy of: Stock Monkeys
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