Even though you’ve made it to retirement, you may be interested in keeping the income streaming in so that you are able to live comfortably and have some extra money to have some fun with. If you’ve covered all your bases and have all of your insurance in order with Medicare supplement plans, start considering adding some of these income streams to your life.
Earned income is the money you make from working a job. This is one that you preferably would not have to do anymore now that you are retired, you probably worked your entire life to have this one. Unless you are bored with the extra time you have in retirement or are super passionate about a certain job that you can have fun working part time in, like at a golf course or on a farm, you shouldn’t worry about this one.
Profit income, however, might be more enjoyable for you. This is the money you make by buying things and selling them for a profit. This could be done with antiques, furniture, cars, houses, household items or gadgets, books, etc. If you are passionate about something in particular and know a lot about it, that might be the best thing to stick to when buying and selling. That way you know exactly what to look for when buying and exactly what it’s worth for when you sell it.
A third income stream that is often overlooked is Interest income. This is profit you make from lending money to people or businesses. You could look at it as an investment with the intention of making a return on the money you lend out at a particular interest rate, but remember there is also the risk that the money will never be paid back. Make sure you trust the people you lend your money to, and always make sure to write up a contract with the terms of the agreement so you can hold the people you lend to accountable to it.
Dividend income is another common one that comes primarily from owning certain stocks, Real Estate Investment Trusts, or insurance policies. Anything that pays out a dividend, typically quarterly or yearly, is considered dividend income. This usually happens when a company performs well over a certain period of time and they reward their share holders by paying them a dividend. Usually, you can choose to take it in cash or you can reinvest it back into whatever the asset is, which will increase your share in it and potentially yield even higher dividends later.