Are you wondering how you’re going to make your money last post-retirement? You’re not alone. This is a concern for all retirees.
It’s time to incorporate passive income streams into your personal finance.
What are passive income streams? They’re sources of income that continue to bring returns without your physical input.
Stop stressing about personal finance post-retirement. Instead, keep reading for the best ideas of passive income for retirement.
1. Real Estate
The real estate market is the perfect place for creating passive income. There are so many methods and strategies to use to your advantage.
First, consider all your current properties.
Do you have a vacation home in Myrtle Beach? What about a ski home in Colorado? Your favorite place to vacation is likely popular with many other people.
Consider renting out your vacation home during the high season. Of course, this means you can’t use it during the popular season. But, the passive income your home will bring in during this time makes it worth it.
Purchasing a Rental Property
If you don’t have a vacation home to rent out, consider buying one. Investing the initial funds for the property will be worth it when you start getting checks.
Do your research when picking the location of your rental property. Do you want it near your home so you can check on it? Will it be far away and use a property management company look after it?
2. Private Lending
Becoming a private lender is an excellent opportunity for empty-nesters and retirees. Perhaps you’re ready to downsize your home and spend your time traveling. You can still make money off your previous home.
Holding the mortgage for the new buyer means you become the bank.
It’s getting harder and harder for people to qualify for mortgages. This is pushing them to look outside the bank for mortgages and loans.
When you become the bank, you’re protected in the same ways the bank is. Except you collect the interest, not the bank. The money you get from this income stream can get reinvested or become your main source of income.
You might be thinking, “Blogging? Isn’t that a millennial thing?” The answer is a hard no.
Blogging can be a profitable stream of passive income for any age. Think about all the different niches and categories blogs fall into on the internet. Not all internet users want to read about the millennial perspective.
There’s a huge market for retired bloggers sharing their expertise.
If this interests you, start thinking about what experiences and expertise you have. How can you use your knowledge to provide value to others?
In some cases, just reading about another retiree living their best life is valuable. It inspires and motivates other retirees to live their best life.
The main sources of passive income for bloggers are courses, e-books, and affiliate marketing. But first, you have to build your blog and your audience.
How to Start a Blog
The easiest platform for starting a blog is arguably WordPress. But, there are many others you may like more. Do some research on which blogging platforms are most intuitive and easy to use.
Choose your blog name. Be creative but make it easy for readers to remember.
Create an “About Me” page, a “Contact” page, and a “Blog” page to start. Write blog posts that add value to your readers’ lives. Focus on building a following and increasing your page traffic.
Once you have a following, no matter how small, you can start getting passive income from blogging.
4. Invest in Stocks
Do you already have an investment portfolio? If so, you likely have room for growth and diversification. Investments are an excellent way to generate passive income.
Take your portfolio to an investments specialist to analyze. The strategy you’ve used before for investments could change when you retire. Perhaps you can afford more risk, or don’t want the ROI to take decades.
Bonds, stocks, and mutual funds are some investment possibilities. There’s also high yield investments and annuity income. Get comfortable branching out into new investment strategies.
Any investment specialist will tell your diversification is key. Embrace this strategy and expand your portfolio.
5. Multi-Level Marketing (MLM)
This method of getting passive income requires some work at the start. MLM consists of joining an existing network and earning a commission.
In many MLM businesses, you’re the sales representative or ambassador. It’s your job to sell their products and receive a commission on your sales.
You may be thinking, “that sounds like a full-time job!”
It can be. You get as much as you put into this job. The way to make it a passive income stream is by choosing a brand you can sell easily to your peer group.
Some examples are doTerra, Avon, Mary Kay, AdvoCare, and LegalShield.
MLM becomes a lot of work when you have to start from scratch. Advertising and marketing to strangers takes skill and expertise.
Having customers that will place orders each month creates passive income. If you cater to your peer group, you don’t have to do extra work pitching to strangers.
Ready to Start Earning Passive Income for Retirement?
There’s no need to stress about money when you retire. Learn about which passive income stream works best for you and dive in. You can still have monthly income without a full-time job.
From renting out your vacation home to using the right credit cards, the options are endless. There are tons of options for passive income for retirement.
For more tips and guides on making the most of retirement, check out the blog.