Are you trying to find some great ways to keep the money coming in long after hanging up your hat for retirement? You may not be working every day like you’re used to anymore, but that doesn’t mean you’re stuck with living off of only what you were able to save up. Here are some ideas that are as easy as choosing Medicare supplement plans.
Invest in paper
Stocks, bonds, mutual funds, ETF’s – you’ve undoubtedly heard all of the buzzwords before. Investing in the market is all well and good if you have the time, knowledge, and diligence to keep on top of your investments and make sure you’re making all the right moves.
Even more importantly, however, are dividends. Some say compound interest is the 8th wonder of the world. Investing in companies that pay their shareholders dividends each year is a great way to make a return on your investment even while you’re growing your initial investment. To really take advantage of the dividend, choose to reinvest it instead of pocketing the cash each year, and your investment grows even quicker due to compound interest. Who wouldn’t want to be making money while they sleep?
Don’t want to wait for your paper investments to grow, or for your dividends to pay out each year? Real estate is a great way to get big cash flows quickly. This does not mean buy a bigger house and hope the value goes up. Instead, buy a house and rent it to a family or two, or three!
Don’t have the cash saved up for a house? Not a problem. Not all debt is created equal, don’t be afraid of good debt. Go to the bank and take out a loan to buy the house. Then just make sure your monthly rental income is more than the loan repayments. Not only will you profit on the difference each month, the rent will keep coming in long after the loan is repaid. That’s good debt, and the name is appropriate, don’t you think?
You could also buy a house and flip it for profit if you’d rather devote your free time to that. Essentially, you’d buy a house that needs fixing up, spend a little time and money fixing it up, and then sell it for a profit. This requires a little more skill to make sure you’re not spending much more money on it than you could ever get selling it, but if you do it right, it’s a great hobby to take up to fill your time during retirement.