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When many people consider how they plan to provide a little extra income during their retirement, they might at first think about how they could boost their stock market portfolios. Maybe they’ll look for riskier investments to increase their returns. They might wait a while longer to retire so that they get higher monthly social security payments. They may even think about applying for one of those greeter jobs at Wal-Mart. However, these choices can be unreliable, volatile, may push a retirement timeline back by years, and could even result in decreased income streams during retirement.
Sometimes we can’t stick with the conventional wisdom when it comes to our retirement. As we’ve seen with the tech and real estate bubbles during the last decade, sometimes following the herd can backfire — and backfire big time! This is why I like to try to think outside the box when it comes to my money and how I can help finance my retirement once I’m there.
Looking for extra forms of income can range significantly from person to person based upon their particular skills, abilities, interests, and location, but here are a few of the ways that I’m considering buffering my retirement finances if and when I get there.
Freelance Work
For some people, freelance work might not be an option, or could be something completely different than what it is for me. My line of work however — writing– could allow me a feasible freelance option in retirement, should I choose to accept it. While it might not be a big money maker, a little freelance work can supplement other retirement income and help me stay on top of money making opportunities that could bolster my income should other income streams decrease or my expenses increase.
Resale
As I age, I hope to start getting rid of stuff. Downsizing in retirement can be a great way to simplify life and make some money in the process. At the same time though, I’m pretty good at spotting valuable and often underpriced items, and I’ve made a hobby out of resale. Even with items that aren’t worth much, I am still good at finding ways to make a little money off of them. I don’t plan to stop this in retirement, and may even increase my resale activities. This can help me get rid of stuff I already have, and sell off new items that I find. I am often surprised at what people either throw out or sell at a fraction of it’s worth, that with little or no work, I can turn around and sell for a profit.
I find such resale activities fun, interesting, and I think that should I be able to devote more time to them, could turn these activities into valuable income streams during my retirement.
My Wits
It’s truly amazing when you stop and think about it, all the opportunities there are for making money out there. While they might not be “regular jobs” as we often tend to think of them, if you are on the lookout, there are all sorts of chances to supplement your income if you apply yourself to seeking out legitimate opportunities.
I hope that by working to keep up with advances in technology and the Internet, I’ll be able to continue to utilize my wits to enhance my income. With Internet access, there are all sorts of income earning opportunities that may not have been possible or available to the common person just a decade ago, so keeping up with technological advances, options, and opportunities like eBay, blogging, web design, Internet freelancing, and similar or related areas could open numerous income creating doors in for me during my retirement.
Choosing Wisely
Some people may not realize just how their choices can make a huge difference in financing their retirement. The geographic location they choose for their retirement, their dwelling, the hobbies and retirement activities in which they plan to partake, as well as their ability and willingness to reduce certain expenses can all play a huge role in how they fund their retirement.
While I’m not there yet, and things can certainly change significantly before I find myself on the doorstep to retirement, I’m already contemplating certain choices that I will eventually have to make that could greatly reduce the amount of money I must have to finance my retirement.
Decisions regarding where I live can affect how much property taxes I pay each year, how easy and affordable it is to get to specific services of amenities I might need, and how I will be spending my time and money, upon what, and in what amount. Whether I decide to live in an apartment versus a home or retirement community, and if I decide upon a home, whether I maintain a mortgage, can also make a big impact upon my expenses and lifestyle as well the amount of extra income I need to finance my retirement. Therefore, it can behoove me to consider and make decisions that eliminate or greatly reduce my expenses as I enter my golden years to reduce the strain upon my retirement finances.
More from this contributor:
Potential Pitfalls of Retirement
Boom or Bust: Plight of the Baby Boomers
Reducing Expenses in Retirement
Disclaimer: The author is not a licensed financial or retirement professional. The information provided in this article is for informational purposes only and does not constitute legal or financial advice. For financial advice, readers should consult a licensed financial advisor. Any action taken by the reader due to the information provided in this article is at the reader’s discretion.
