We all want to generate enough money before retirement, but this usually requires a bit of know-how.
Income is something that people tend to worry about because it’s almost impossible to live a comfortable life without it. This means you’ll sometimes find yourself at a crossroads thinking about how you can expand your income and make more.
There are different approaches you can take when it comes to making money and some will yield better results than others. There is also no one-size-fits-all model to making money, and it could be a matter of trial and error. Below you’ll discover some simple ways that will allow you to generate passive income, especially if you’re close to retirement.
Stock Dividend Income
A dividend payment that’s made in the form of additional shares instead of a cash payment is known as stock dividend income. One of the advantages of stock dividend income is that it’s usually not considered taxable income or is taxed at a lower rate than interest income. However, a disadvantage is that companies can reduce or eliminate dividends during difficult times.
If you own a property, you likely know that this can be a great source of income. Those who have decided to go into rental property have the opportunity to generate residual income on a monthly basis. You can also make money from equity release which is where you can obtain a steady stream of income using the value of your home. This is an income that you can tap into closer to or after retirement if you want to allow your equity to build up over time.
For those who are close to retirement, consider getting immediate annuities. With this, you can secure a life-long cash flow no matter how long you live. This contract between you and an insurance company requires that you make a lump sum payment in exchange for regular income.
Look for Alternative Paid Work
If possible, increase the amount you generate with paid work. This gives you more money to work with and distribute to different aspects of your pensions plan. You may decide that you want to put some of your earnings in a high interest savings account or commit to higher risk investments, if you have the tolerance for it. Below are some ways to generate income from paid work.
Consulting: If you’ve been working over a number of years, you’re probably an expert in certain areas. Think about offering consulting services in your areas of expertise as it’s a flexible way of making money, and you can charge as much as you think your services are worth.
e-Commerce: For the savvy, you could open up an e-commerce store online. It doesn’t have to be capital intensive and could be something you do during your free time. One of many E-commerce business ideas is starting a drop-shipping business which you can do using platforms like Shopify or Oberlo. You can increase your income before retirement by tapping into several effective sources.
Online Courses: These days, selling online courses has become popular. If you’re confident in front of the camera and knowledgeable in certain areas, this could bring in income. You’ll need to create a course, website and also build an audience. However, the good thing about courses is you can sell them for as long as you want.