Saving in a tax-deferred account to lower your taxes and not relying on social security or your children are two of the top reasons why you might want to start saving for retirement early.
However, even if you start early, it’s tough to achieve financial freedom and live a life without limits when you retire.
Believe it or not, you can live life on your own terms if you learn how to make money in retirement. Want to learn how to diversify your retirement income?
We’ve got you covered. Here are 4 ways you may consider to make money when retired to live your dream life at any age.
1. Diversify Your Guaranteed Retirement Income
Earning income during retirement doesn’t mean you need to work. You can consider investments such as annuities that guarantee retirement income.
While you should always do your research to make an informed decision, it’s recommended to consult a financial expert.
Sit down with your financial planner and discuss your options. Your expert will go over the pros and cons of the available investment products and the guaranteed retirement income you’ll earn.
2. Develop a Rental Income Stream
Have you ever invested in real estate? Does your home have an extra room? Believe it or not, rental income is an easy way to make money when retired.
If you can’t buy a property, you can list your spare room on platforms such as Airbnb to earn rental income. To develop a strong rental income during retirement, it’s best to start early by buying several properties you can rent.
3. Find a Passion You Can Monetize
It might sound a bit out there, but you can monetize a passion. What are your hobbies? Do you like visiting flea markets or going garage sale hopping?
You can turn these hobbies into a steady retirement income stream. It all comes down to looking for ways to earn an income from doing something you love. Examples of passions you can monetize are pursuing teaching or even opening a store.
If you don’t want to dig into your retirement savings to get started, you may consider certain loans for retirees. Keep in mind you’ll need to submit a copy of your ID, proof of income, and social security award letter to obtain approval.
4. Try Becoming a Consultant or Coach
Retirees often feel they don’t have anything else left to do after leaving the workforce, but that’s far from the truth. Consider putting all your lifelong experiences to work by helping people. Have you considered becoming a consultant or coach?
If you want to motivate people to achieve their full potential, you may become a life coach. You could consider becoming a business consultant or even a human resources consultant depending on your work experience. A good starting point is taking a hard look at your experiences and figuring out how you can help people.
How to Make Money in Retirement?
No matter how financially savvy you are, there isn’t an easy answer to how to make money in retirement. It will all depend on your lifestyle and your income needs.
However, you should be aware of only developing income streams you can manage easily. After all, you retired to live, relax, and enjoy your best life yet.
Did you find this article interesting? Keep browsing the rest of our site to find more useful tips and articles about everything from managing your finances to improving your lifestyle.