Planning for your retirement is one of the most important decisions you will make. If your goal is to retire from work and possibly move overseas or travel, then you need a solid retirement income strategy to maintain your lifestyle.
That’s why we recommend creating a passive income stream that earns you money when you decide to stop working.
What is Passive Income?
Passive income allows you to make extra cash without having an actual job. It takes time and a lot of effort though it can serve you efficiently for years.
Passive income is mostly created by your business that you rarely participate in or a rental property. If you make smart investment choices your money produces more money without any effort.
Passive income is perfect after you have retired since it expands your income sources. It also requires very little or no effort which means no disturbance during your leisure time.
#1 Renting your property
It might be stressful or tiresome to maintain a rental property and look for tenants. To avoid this, you can employ someone to manage the property. List your place for rent in the local classifieds or use a rental website like AirBNB.
#2 Dividend stocks
Follow the portfolio to ensure it is performing well. Dividends have the capability to create capital gains and they make payments right away. It is an ideal way of making extra income effortlessly. Check out this list of top dividend stocks by sector.
#3 Side hustle
You can create a side hustle and in the future turn it into passive income source. For example, create a website and eventually you can hire someone else to run it. You can start employing writers to write content for your site. Check out this list of the top 50 side hustles you can start today.
#4 Peer-to-peer lending
You can loan to other people through some lending cooperatives. You can charge higher interest rates as compared to bonds. LendingClub and Prosper are great platforms to start your lending business on.
Real estate investment trusts are joint funds that purchase real estates. Vanguard`s major REIT yields 2-4 percent. Though, REITs are vulnerable to market swings. Check out this list of the top REITS to buy.
#6 CDs or High Yield Savings
CDs may earn you 2% interest after a period of five years. Depending on the bank you decide to save in a savings account can earn you up to 10% annually.
#7 Real estate Investing
If you invest in real estate, it can make you a lot of money effortlessly especially if you hire someone to manage the property. It might be expensive to start off but after you are done you just sit back and earn your money again for a very long time.
#8 Real estate Crowdfunding
Real estate crowdfunding links borrowers (people with real estate projects) and investors (persons who are willing to invest in real estate for the income though do not want to own residences) for a win-win arrangement. Check out the best real estate Crowdfunding sites before you start investing.
#9 Surveys and paid focus groups
Sign up with one or more websites and earn cash by taking surveys. All you are required to do is answer the queries and earn cash. You can outsource this work to a virtual assistant.
#10 Network marketing
If you join a network marketing organization, you become a team member. You can earn up to $5000 a month if you have a good leader. You can as well rise and become a leader. Also read the fine print correctly before signing up.