Retirement income streams are far less time consuming than making an income throughout your adult life. Instead of forty-hour work weeks, these options help you regularly generate income while still giving you time to relax. Each of these income stream options can help you stay financially successful throughout retirement.
Buy an Annuity
Purchasing an immediate annuity allows you to make the most of the sum of savings you’ve been accumulating throughout your working life. If you decide to purchase an immediate annuity contract, your repayment will be unaffected by changes in stock prices or interest rates. Your insurance company will continue to provide you with a fixed sum of money every month until your death. This allows you the security of regular income during retirement. However, the downside to annuities is that the payment never goes up. Because of inflation, that means this income can become less helpful over time. Your insurance company also gets to keep any remaining money after your death.
Invest In Real Estate
If you’re still looking for a more active project in retirement, investing in real estate could be a great fit for you. The real estate market is booming right now, and real estate investors have the potential to make quite an impressive income. With this option, you’ll be able to purchase real estate properties to resell or use as rental properties. Screening tenants helps weed out ones that may become a problem. Doing this properly has the potential to keep you financially comfortable for the rest of your life. However, investing in real estate does require more consistent management and upkeep than many of these other options.
Purchasing and creating bond ladders is a less intensive way to maintain your financial independence during retirement. This option is executed by purchasing multiple bonds that mature at different rates. This allows you to receive a consistent return of money. Laddered bonds are helpful because they are a relatively low-risk option. Purchasing many bonds with a small investment can allow you much greater returns at a regular rate.
When considering retirement, there are many income stream options that can keep you comfortable financially. Each of these options come with their pros and cons, and it’s important to consider what makes the most sense for you and your retirement goals. However, each of these also have the potential to help you continue to thrive financially in retirement.
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