Supplemental Retirement Income
Would you rather depend on others for your retirement income needed or depend on yourself? Most retirees depend on others for retirement income--social security, the bank, their pension, etc. Unfortunately, you cannot control any of these retirement income sources so if you get screwed, it should come as no surprise. Let's discuss controlling your income in retirement.
Own or invest in a business. You can do this at any age. In your town, there are dozens of opportunities to get needed retirement income from a business. You don't need to work in it--you can just be an investor. For example, what is your favorite restaurant? Would that be a business you would like to own or own part of? Then ask the owner if he is looking for investors--maybe he needs cash to send his kid to college or maybe he wants to open another location. What about your clothes cleaners? Are they busy? is this a business you would like to own or own part of? Think about everyone you buy something from and if you think it's a quality business you would like to own, then ask the owner if he wants an investor. Your retirement income needs may be satisfied right in your own town. These local businesses -- restaurants, clothes cleaners -- they generate plenty of consistent cash for the owners. Typically, 20%+ of the revenues can be taken as income and can be the source of your retirement income needs.
Or maybe you've said to yourself, "I wish there were a ...... in my town." Well why not start it? If it's a big company or a franchise then call them right now. Would you rather get supplemental retirement income from something you can control or observe that's right in your town, or invest in stocks, or bonds with people you don't even know, who may have questionable ethics and be the next target of the Justice Department or SEC?
"But I don't know anything about.....," you say. Well FIND OUT! Go to the library, get on the Internet, talk to others in that business. Retirement earning knowledge does not come out of thin air. It comes from asking and investigating. Be interested in looking stupid (you need to get over the American hangup of looking stupid) and asking basic questions so that you learn what you need to know to secure your needed retirement income.
Alternatively, maybe one of those local businesses want to grow and will hire you to make their business grow, assuming you have no money to invest. Take your favorite restaurant. Have them print up coupons that you will give out to everyone you know (you can also put them on the windshield of every car parked in town). For each coupon that gets redeemed, the restaurant owner agrees to pay you $10 to supplement your retirement income. Sure, that payment to you may consume their profit on the meal they serve but if the new customer is impressed, he comes back again and again and the restaurant owner earns hundreds of dollars over the years from his new patron. Same with the cleaners you go to, the fruit stand, etc.
Its time you get out and about and see all of the many sources for retirement income needed. Put on your supplemental income glasses and see all of the opportunities around you and stop looking for the job that does not exist.
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I think the Retirement Income is all very true... very well said. I'v have a brother who has retired and doesn't have the rite income. Ill show him this site i think it could help him.
Also very well put together site to! thank you for sharing this with me, and the public.
I especially like the coupon idea. Also, there are several online businesses you can start on the cheap which can provide a nice income, if you have some computer skills.
One way for retirees to earn extra income from their existing portfolio of stocks and ETFs is to write out of the money call options against those holdings each month. There is a free tutorial on how to do it here:
http://www.borntosell.com
You can earn 3-6% per year extra income off stocks you already own. And if you have a lot of bonds, now would be a decent time to switch to covered calls. You'll avoid the looming bond bubble and get a better yield than what bonds pay today.
Retirement is definitely an inevitable situation for all of us. I am happy that I am able to get as much information as I can from your blog. I have just been married and having the financial security in all stages of my new family is my top priority.
Bob, regarding local businesses, in my community there's an organization called Experience Works, which specializes in finding work for experienced retirees looking for additional income.
Before deciding regrettably to outsource their call center, the local United Way employed workers from this organization, and they were able to help the regular staff on a part- or full-time basis.
It seemed definitely like a win-win; the company benefited from workers with a lot of helpful real-world job experience, and the workers got to interact with coworkers as well as the public and keep active in mind and body while earning supplemental income.
Hope your readers find this useful, maybe similar organizations exist in their areas which are just waiting to be discovered!
Interesting strategy...but what would be the best way to find locals looking for retired investors? Ads?
I totally agree. I have lost 3 pensions during my life. One I had to use to help fund a failing business but fortunately early enough in my life that starting fresh was still good. However, the last two were market adjustments that totally erased my retirement funds managed by others. I recommend anyone who has the wherewithall to to their own thing.
must agree with this. While waiting for a plane ride home one day, I watched the news as they anounced one of my stocks went from over $25 to 3 cents! It was not much fun. They found the company was cooking their revenue books and cound not re-finance their debt. Pretty good, heh? My new direction with web sales will, over time, provide an income that will go into retirement days.
hope others listen to your blog. Good luck
I think that it's absolutely important that people learn to take care of their own retirement income sources rather than totally relying on somebody else. I think it's just common sense. Yes, it's more work and you have to educate yourself and get smart (and start early is possible) - but you do have to take control yourself. I'd look at pensions etc as a bonus and not the most reliable source.
Own or invest in a business is best option after retirement. I would say this is the only way to survive in that period of life.
My dad is recently retired and he still keeps super busy with taking care of grand kids and working on the house. He enjoys himself to by going to the gym and other stuff. I hope that I will be able to provide for him as he gets older and his social security helps to.
Thanks for your post!
I'd say the best investment is realestate. The problem with it is that you need some pretty good money to invest first - but once you own an appartment or two to rent out, you should be making enough money monthly to enjoy your retirement.
I agree that you need to keep active even after youv'e retired. Too often I've seen friends hit 65, reitre from their jobs, slow down, and within two years I'm at their funerals. I really feel that staying active adds years to your life, regardless of what your'e doing to do so.
At 26, retirement isn't to coming anytime soon. However the biggest take home point is to not rely on things like Social Security, pensions etc. to take care of you during retirement. I think I will take a more serious look at this topic. It's never to early to start planning for retirement. Thanks!
I think the best thing to do is start investing in your retirement as soon as possible. When you are young and working you should be putting money aside that you need if you retire.
Interesting and informative post. Thanks for sharing it. We should start planning for investment. Investing at younger age would reap more profit at the retirement age then compare to investing more at the older age because of the cumulative growth.
absolutely right that we often do not realize to set up pension funds. we just hope to get pension funds from corporate systems. while our income spent for other purposes. and we never noticed that the value of company pension will be smaller in line with inflation. This is very different if our pension funds taken from the passive income entrepreneurship.
Its time you get out and about and see all of the many sources for retirement income needed.
Thanks for sharing, really comprehensive and useful.
Retirement income is essential for every person as it is the money to be used in old age. Offcourse whatever be the genuine source of income. But passive income from any entrepreneurial venture or internet business is always welcome.
My wife and I have decided to invest in property for renting out. Seems the safest way to control our investment, though it will bring more work, but we feel it is the best way to protect our retirement funds. Grant
I strongly believe in investing in a local business, as opposed to the stock market. Building a strong relationship with business owners has a value far greater than the dollar amount most people see.
Many retired people have spent their lives working - many in jobs that they weren't particularly happy in. Unless you want to earn a huge amount of extra income, I think retirement is the perfect opportunity to indulge in hobbies that might make you money.
For example if you collect items, it might be an idea to set up an online shop to buy and sell similar items. If you've always wanted to be a writer, start writing and submitting articles to publishers and competitions.
This way you earn extra money in your retirement years, but also finally get to do the things that you were prevented from doing while working.
Retirement Income ,one of the essential security of life.
Retirement is definitely an inevitable situation for all of us. I am happy that I am able to get as much information as I can from your blog. I have just been married and having the financial security in all stages of my new family is my top priority.
This is something that the average person wouldn't consider. There should be some sort of "Guide to Growing Old - Financial" book that's handed out when you reach a certain age, and this should be included 🙂
Thanks for your efforts,
Jake
Luxury Hawaii Real Estate
Excellent and very constructive post. I should start planning my investement right now to grow my business adn do thing as good as possible. I am 28 years old, so It´s time to invest. It would also help me to learn how older people invest and wich methods they apply.
I have recently started to serve as an investor in numerous businesses. This is a great idea to create residual income over an extended period of time. Great Post!
Retirement Income is a need for everyone...
Very interesting article. You are so right that the things we've traditionally relied on won't always be there when we retire. And even if they are, they might still not be. Take KMart for example. I bought some of their stock, they had financial problems, went into bankruptcy and came out of it fine, but my stock became worthless! Not fun! Thanks for some creative and interesting ideas, as well. 🙂
yo can invest in gold with your retirement... Petaquilla
I would never tend to depend on anyone else on my retirement...
SmartLipo or Liposuction
Yes. Investing in a business is a good option in getting extra retirement income.
Retirement income is something you could never get as for a Chinese farmer.
Very true..I am very happy to read this article.. I agree with retirement income is definitely an inevitable situation for all of us thanks for giving us nice info. Fantastic walk-through.
I agree. With the average income of retirees, many are not living the lifestyle they set out to do when they started saving. As more they save less, retirement funds will fall more on the government as Social Security becomes the major source of income.
Retirement income is the very basic need of almost all retired person. I agree that all person does not get the full reward of it.This can help a lot. Great post.
With the stock market falls / flatlines I can see myself continuing to work well into my 70’s at this rate. Good advice re: start saving sooner rather than later
retiress should not only rely to their pensions to have decent life after retirement, they should invest their lumpsum money to some business, local or overseas, monthly pension will never be enough.
To get needed retirement income from a business, a lot of people look to set up a new business venture or to go into partnership with somebody else, to help plan for their retirement.
Retired people have so much to offer, they can very often earn more as a consultant, in the business they retired from, where younger up-and coming employees can benefit greatly from a wealth of experience afforded to them by retired persons. I must add though that co-ordinating this can prove difficult, as not all young people bow to the knowledge available, as a lot form strong opinions, before gaining any experience. My point is that there is always value to be had from older, more senior minds.
Regarding your comment: "Own or invest in a business. You can do this at any age." I wholeheartedly agree!
If the need for income isn't immediate, you can go into some businesses at any age. I'm 71 and just launched a website for my daughter; built 100% of it myself in about 2 months and hope to "monetize" it over the next few months. (Of course it took a year or two of "learning" but if you make learning a hobby, you can do it.)