Just because you’re retired doesn’t mean you can’t keep making money. There are several ways you can continue to generate income after retirement.
Learning how to make money after retiring is extremely important. Healthcare, housing, and other expenses can add up. If you’re not able to work anymore, you need to be able to continue to support yourself via other methods.
If you want to enjoy retirement without being worried about money, consider trying one of these methods to generate income after retirement.
Find the Right Savings Account
Passive income is important after you retire. One of the easiest ways to generate passive income is to find a great high-yield savings account.
A savings account with a generous annual percentage yield (APY) can help you earn hundreds or even thousands of dollars per year.
Be sure that your new savings account is FDIC insured. Also, make sure to review any fees associated with your account.
Some good options include:
- Ally Online Savings¹
- Marcus by Goldman Sachs Online Savings²
- HSBC Direct Savings³
While these options are great, there are plenty of other choices out there. Make sure to do your research to find the best option for you.
If your employer doesn’t offer a pension, you should consider buying an immediate fixed annuity⁴.
Fixed annuities are similar to Certificate of Deposits (CDs), but are issued by insurance companies rather than banks.
Essentially, you buy an annuity by paying an insurance company a large sum of money. In exchange, you receive a monthly interest payment over a certain period of time — often for the rest of your life.
This can be a great way to continue to earn money throughout your retirement.
Before retirement, people often choose to invest in growth stocks — meaning, stocks that they expect to increase in value in the near future.
However, in order to generate income after retirement, you should focus on investing in stocks that pay regular dividends as well as bonds that pay interest.
Investing this way allows you to earn extra money to invest, which can be withdrawn when you retire.
Stock dividends and interest-paying bonds can be great ways to generate income after retirement.
Purchase a Rental Property
Investing in rental properties is another great way to generate income after retirement.
If you own two homes, you can consider renting out your other home for additional income. Alternatively, if you have the spare income, you can purchase a new rental property.
Keep in mind that this won’t be passive income. You’ll still have to put in hours as a landlord.
However, if you are willing to do that, rental properties are a great way to generate steady income in retirement.
Find Ways to Generate Income After Retirement
It’s important to start analyzing your options before you reach retirement. In order to enjoy your later years, you’ll need to find a way to fund your living and medical expenses after retirement.
You should research the options listed above to find out as much as you can before choosing one.
Search online to compare different investment and income-generating opportunities in order to find the best option for you.