Ways To Make Money in Retirement

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Once you have calculated how much money you will need per month in order to retire, you are faced with a couple of major dilemmas. First, how long will you need that money, and second ways to make money sufficient to fulfill your monthly requirements. While both dilemmas have different answers, they share the same solution. In such a situation, both dilemmas can be solved with a calculated and consistent residual income.

A residual income is by definition an income which occurs over time as a result of efforts which you have taken in the past. For instance, if you were to build a house and rent it out, the rent which you receive monthly is residual income because it comes as the result of your original construction efforts. Once you pay monthly expenses, such as maintenance and repairs, you now have residual profits. Provided that your income remains higher than your expenses, you will have residual profits as long as you own the house for the remainder of your life.

 

Now that we have discussed real estate, what other types of investments can create a residual income with minimal risk and fluctuation? If you have enough liquid assets, you can buy dividend paying stocks or income trusts. It is fairly simple to research the dividend history of a company, and find the companies which pay consistent dividends year after year. Historically, two such company types were banks and insurance companies. However, with the events of September 2008, even this is not a sure bet. However, if in the last twenty years the company has never missed a dividend, then you have a candidate. If they have been able to gradually increase their dividend payouts over time, then you have a winner. Remember that you want a dividend payout which increases over time due to the fact that everything else gets more expensive over time.

 

Did you know that a $500K* investment in a divers group of dividend paying stocks can potentially allow you to retire on $50K* per annum? (*These numbers are merely speculative, and are not real or validated). If fifty-thousand dollars is enough for you to retire and live on for the next however long, then you know how much you need to accumulate before you can retire. Another benefit of dividend income is that the tax rate on investment income in most western countries is much less than earned income taxes. This is something which you should factor in when making your calculations.

 

I strongly recommend that you consider looking into some great online income businesses. Perhaps you will not make millions, but millions have been made on the Internet, so it is very possible. However, if you find that in the next few years that you can make more money than working a nine to five would produce, and you continue to re-invest in and nurture your online business. If you take these steps, not only would you create multiple streams of income, but you could retire earlier than expected.

 

Of course, if you are like most people, the first major hurdle is coming up with the initial investment. The solutions comes in stages. First, start with a business which requires a minimal or no investment such as Affiliate Programs. Once you create an income stream with a minimal or no investment online business, use this income to invest in other residual income sources.

 

Cost-free Internet businesses are an ideal place to start when looking for ways to make money without an initial investment. If you are concerned about your lack of experience with Internet marketing, just realize that it is easier than you think, but does require that you create your vision, then take action. If you are having trouble getting motivated, just keep this saying in mind. Vision without action is a daydream. Action without vision is a nightmare.

 

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