5 Unique Retirement Income Streams
What’s in your retirement savings plan? Though you most likely have income from just one source now, which would be your job, most Americans will have the big “three” retirement income sources after they stop working – Social Security, 401(k) or IRA, and company pension. However, you are not limited to just these sources of income after you retire from full-time work.
Many people, when they start planning for retirement, simply begin putting away small sums of money in an interest-bearing retirement account. However, there are other unique ways you can invest in your retirement. Here are five that could result in additional streams of retirement income.
1. Annuities
Invest in an annuity, and you can see a guaranteed stream of income for a guaranteed amount of time. Annuities can be purchased by a lump sum or by investing regular amounts for a period of time. Larger insurance companies are usually the main sources for obtaining an annuity.
Once you agree to buy into an annuity, the insurance company invests your money and is able to pay you more than you paid over time. Annuity payments can begin right away or deferred until a certain time, such as retirement. If ever you are lucky to come into a large amount of money, say by an inheritance, putting all or most of it into an annuity can pay off for your retirement years.
2. Investment property
Want to be a landlord? There is money to be made by purchasing income-generating property. Investment properties can be great for those who are still 20 to 30 years from retirement. You could purchase just one investment property as a rental home, have tenants pay rent that goes toward paying off your mortgage, and by 25 to 30 years, your investment property is paid for in full by your tenants. Any rental income you have after retirement all goes into your pocket.
Or, another strategy may be to purchase an investment property, pay off the mortgage through rental income for 25 or 30 years, and then sell the home after it has gained much appreciation. Invest the gains in an annuity as mentioned above, and you’ll have a great stream of retirement income.
3. Stocks
Don’t forget about investing in non-retirement savings. Investing in growing companies, either publically traded or private corporations, can provide a good regular source of income in the form of dividends. Though an individual dividend is usually just pennies, if you have purchased thousands of shares in diverse companies over the years, the dividends can add up to become a nice income stream.
4. Royalties
You could also earn royalties from intellectual property in your retirement years. Write a non-fiction book. Compose a song. Any creative endeavor where people buy a license to use your creative invention can result in regular royalty retirement income.
5. Part-time work
Most people look forward to retirement so they don’t have to work at all in their golden years. However, many folks realize after retirement that they are bored and want to do something with a purpose and that still makes them valuable. Part-time work can give you a way to keep busy and follow your hobbies and provides another stream of retirement income.
Retirement doesn’t have to be limited to just the usual sources of income. Be creative and find income streams from sources that are not always traditional. Don’t forget to talk with a qualified retirement wealth specialist at www.kenhimmler.com or retirement asset management company at www.iamllc.biz to get the best advice you need on planning your retirement income sources.
Authored by Kenneth Himmler, Sr.
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