Just because you’ve quit the day job, it doesn’t mean that you have to stop making money during retirement. These tips can help you find ways to augment your income that don’t involve the daily drudgery—think, passive income. Some help you travel to get ahead and others you can do virtually anywhere.
Ways to Make Money During Retirement
Make Money Traveling
It might seem too good to be true—especially if you are an avid traveler—but it is possible to earn an income by traveling and have fun while you do it! If you own an RV or have one in your retirement plans, you can use it to boost your income.
With an RV, whether a part-time or full-time traveler, you can:
- Be a work camper. You can follow the best weather around the country and live in upscale RV parks throughout the year. These communities hire residents to perform some of the work in trade for free space rent or an actual salary.
- Be a campground host. State and national parks across the country use hosts as part of their staffing and have areas set aside for RV camping. Besides collecting entrance fees, you might be able to give tours, lead hikes, staff the information center, or be part of the security team.
Invest in Real Estate
Buying rental property can be a good investment for semi- or full-time retirees. A rental home provides monthly cash flow, substantial tax benefits and appreciation over a longer period. Investment property requires 20 percent down and the lender will use both your income and net worth to qualify you. You may even qualify for a second home mortgage that has lower down payment requirements.
A good place to start investigating the viability of investment property as a way to use your assets to generate passive income is by consulting with a property management company. They specialize in finding ideal properties, managing and maintaining them, along with tenant placements.
If you opt for a property in a distant location, you’ll be able to deduct most of the travel expenses associated with the home. Besides the principal payment, interest, taxes and insurance, you’ll be able to depreciate the property. The money you make after selling it can be folded into a new property without taxation, and you can also sell it and use a one-time exclusion on the profits to prevent capital gains taxes if you meet the IRS requirements.
Go to the Stock Market
Moving part of your retirement savings into the stock market can help you build wealth. Experts recommend that you use a formula to help you determine how much to invest based on your age. They suggest subtracting your age from 100 and allocating that difference as the percentage to put into the markets. Since people are living longer, others suggest using 110 or 120 as the baseline.
If you’re looking for convenience with a low risk, consider investing in index funds. They’re managed by computer software and over time, have matched or outperformed stock portfolios managed by people. They’re also cheaper and easy to secure. If you’re looking for safety and dependability, consider going into bond index funds. They grow more slowly than stocks, but the risk is minimal.