Posted on October 22, 2018
Types of Income
It’s not too late in retirement to continue learning about income and try to refocus your efforts a bit. Once you have covered all your bases from an insurance standpoint, and Medicare supplement plans, take a look at the sources of income you still have and see if there are any you might be missing out on so that you can live a fun and comfortable life during retirement.
Earned income is what we all know and love as good old fashioned work, earning a paycheck. It also comes from owning a business, which is much more ideal than working a job. If you think you are ok with finding part time work that involves something you really love, such as on a golf course, then maybe an easy job isn’t so bad. If you can run your own business, however, you will enjoy much more freedom and can hire employees underneath you to run the day to day operations instead of you. Start a lawn care or landscaping business instead, and try to get golf courses as your clients. You’ll spend plenty of time designing and maintaining golf courses all on your own instead of having to work for one.
Portfolio income tends to involve a lot less effort than earned income. This comes from buying and selling stocks, Real Estate, art, or any other type of valuable items. Although it may require some upfront work to research what stocks or properties you want to buy, once the purchase happens there is very little to do, outside of passing the time, to be able to sell the item and make money on it. You will, of course, need to do a little more work to find a seller and actually complete the sale.
Lastly, passive income is the way you really want to go, especially during retirement. Passive income comes from assets you own continuously creating value for you. For instance, owning a home that you rent out to people is the perfect source of passive income. Earning dividends from certain stocks or assets is another form of it. This type of income is most ideal because not only does it involve little to no effort once the asset is acquired initially, but it continues to make you money long after regardless of any level of work you continue to put into them. During retirement, what better way to make money could there be other than that?