September 1, 2021
Strategies for Earning Passive Income During Retirement
Invest in your future by generating wealth on the side.
When it comes to retirement, your savings strategy can make or break your quality of life. It is never too early to start planning for retirement and this provides more options for your savings and lifestyle. Passive income is generated by your investments, businesses, and side hustles. Adding streams of passive income is a great way of diversifying your investments. Read on to explore new options for additional income during retirement.
Categories of passive income include investments such as retirement accounts, mutual funds, businesses, and real estate properties. This does not include a salary or a job where you currently work. This qualification is relevant since the IRS has specific rules to follow for income to be taxed as passive income.
One of the most popular ways to earn passive income is through real estate. Property management companies can help direct your investment if you prefer a hands-off approach. Ask a financial advisor at Citizens First Bank for advice on the best real estate investment for you.
Another opportunity for passive income is downsizing your home to save on costs, or to rent out your property. Flipping houses can be a more hands-on way to earn income but can be risky without prior knowledge of house renovation. Becoming a host on short-term rental platforms such as Airbnb, Vrbo, HomeAway, Vacasa, Booking.com, and TurnKey can generate passive income from renting out a spare room in your home.
If platforms like Airbnb are not a good fit, your properties can also be posted online as an upscale event space through websites like Splacer. Houses are not the only asset that can be used for passive income, platforms like Turo, RVshare and GetMyBoat can allow you to generate extra income from your unused cars, RVs, and boats.
Reach out to your local CFB branch and meet with a financial planner to help you get started investing in passive income options.
