The best retirement income for 2021
There are two types of income you can have (according to the IRS). That is active (or earned) income or passive (unearned) income. The difference is in how it is obtained and how it is taxed
How to make money in retirement
Active income is the money you exchange your work for. I do that part time.
The easiest way to supplement your retirement income is to simply keep working full or part time. Assuming you can keep working physically and mentally. Being mentally capable is very important. If you are unhappy with your retirement job or don’t like what you are doing, it can have an adverse effect on your physical health.
Active or earned income can be made almost immediately, but passive generating income takes time and generally requires some initial investment.
Everyone knows how to generate active income. You work for it and you get paid for your work. That’s what a lot of retirees, myself included, do, either full-time or part-time. In fact, I worked part-time for about ten years in the same profession that I retired from.
What I want to mention is passive income. You have to do a bit of work to get it started, but once the money starts coming in, you may need to do very little, except maintenance, to keep it running.
If you are willing to invest a little in research, learn time and money, NOTHING BEATS PASSIVE INCOME..
How to generate passive income?
Passive income is the one for which you do not exchange your work. This could include investments, residual income, affiliate income, or rental income.
Passive income it always takes a while to get started. As I mentioned, getting into this type of income stream depends largely on how quickly you need extra money. I’ve listed four sources of passive income and there are probably many more, but these may give you something to think about.
Investment income: People who have invested in the stock market, either directly or through mutual funds, have made a lot of money since November 2016.
Investing in the stock market probably has the greatest financial risk involved if done carefully, it can be the most lucrative. There is a wealth of information that could be helpful in helping you make an informed investment decision.
Personally, I would start by learning how to invest and then start with a small amount of money that I could lose without worry. It might be beneficial to do some simulated trading to learn how the process works.
Affiliate Marketing: Building an online business takes a long time. Every overnight success story you hear comes after months or years of research, study, and hard work. But if you have an idea for a service or product that can be done online, it might be worth the effort to pursue it. Think of Angie’s list, eBay, or Facebook.
Affiliate marketing requires the ability and knowledge to develop a website and content that is tailored to the customer’s needs. There are many Amazon merchants online that offer affiliate programs. Do a search for a niche, products or services that you would consider.
Rental income: If you have enough money to buy a few rental units, this may be the best way to supplement your retirement income and leave a legacy for your family. Do a little research on multi-family homes, apartments, or commercial properties and see what’s available in your area. I know a guy who took home equity to buy a rental unit. It worked for him, but it’s an idea that might not be for everyone.
Don’t become a homeowner without studying how to own it. There is much more than buying a property and renting it. There are government regulations to comply with and tax regulations to be taken into account.
If you decide to own, find out how to buy and own rental units. Get a spreadsheet to enter a few numbers and see how specific properties will provide income. Learn about the landlord / tenant laws in your area and get the advice of a real estate professional you trust.