Just because you’re done with the 9-to-5 daily grind doesn’t mean your income stream has to come to a screeching halt. These days, many retirees are focused on creating multiple sources of passive cash flow to supplement their hard-earned retirement savings. After all, a little extra money coming in never hurts when you’re living on a fixed income.
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GOBankingRates consulted financial experts across the board to get the scoop on the top passive income opportunities available to today’s retirees. Whether you’re looking to put your investment portfolio to work or leverage skills and assets accumulated over a lifetime career, you’ll find a variety of lucrative strategies for keeping your retirement flush with extra cash.
Paul Tyler, chief marketing officer at Nassau Financial Group, highlighted how retirees can turn to annuities for guaranteed passive income.
“Higher guaranteed interest rates from multiyear guaranteed annuities can turbocharge retirement savings accounts over a long period of time,” he said. “Guaranteed income checks from fixed indexed annuities can take an enormous amount of stress away from figuring out how to pay everyday bills.”
Nothing beats the appeal of getting paid just for owning a piece of a profitable company, said John Stevenson, an expert contributor at Annuity.org. Investing in stocks that pay dividends from established blue chip corporations allows you to collect recurring payouts simply for holding the shares in your portfolio. However, dividend investors need to watch out for rate changes and suspended payments during lean times.
Aside from stocks, investment funds, like mutual funds and exchange-traded funds, can pay dividends and distribution income, providing another source of passive cash flow for retirees — as long as retirees calibrate the risk levels to their post-work lifestyle. After all, retiring doesn’t mean you retire from managing your money wisely.
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Real estate is a classic passive income generator, and Scott Lieberman, founder of Touchdown Money, noted the rent potential of unused property for retirees.
“If you own property that you won’t be using, renting it out can be a great way to give yourself another income stream,” he said. “You’ll have to spend a little to keep it clean, but you’ll more than make up for it in rental fees.”
