How to Generate (more) Income in Retirement.
Do you want or need more income for your golden years? With low interest rates and reduced pensions retirees have been on a journey to find alternative sources of income. Retirees have historically relied on Social Security benefits, pension payments, or investment income to meet their needs during their retirement years. These traditional income streams have been the source of survival for many in retirement.
The asset level of a retiree determines how much income she could receive. For example, if an individual retired with $1 million, she could expect to receive about $40,000 in annual income. She’d collect this investment income, along with Social Security, to meet her living needs. In year’s past these two items may have been her only choices.
However, through the Sharing Economy she can now generate multiple streams of income on her terms from items she already owns or possess. She can now free herself from low yielding bank CD’s and expensive insurance products.
Another benefit to the Sharing Economy is owning fewer assets. A car is a major expense. In addition to monthly payments, there’s insurance, storage and maintenance. These expenses will take a big chunk out of her monthly income, but thanks to Uber she doesn’t need to own a car.
Here’s a list of companies you can tap into today to start generating more income for your retirement.
· Uber and Lyft. If you own a car and have some free time, you can drive for Uber or Lyft to generate income. You can set your own schedule and drive as often as you wish. Of course, the more you drive the more money you’ll make.
· Boat Bound. Do you own a boat sitting in dry dock? Does your boat only see water on Memorial and Labor Day? If so, you can use Boat Bound to rent it out rather than have it resting on a trailer in your driveway.
· RV Share. Did you buy an RV on the day you retired with visions of driving across the country? You may have made one or two trips but now your RV is stored on the side of your house and it’s being used as an extra storage room. Through RV Share you can rent it out to generate income. RV Share has an earnings calculator to give you an estimate of how much money you can make from renting your Class A RV, Fifth Wheel or Pop Up Trailer.
· Turo. Through Turo you can turn your car into a rental. Your car probably sits idle for most of the day so now you can let others drive it when you’re not using it, and this will put a few extra dollars in your pocket.
· Just Park. A parking spot is a coveted asset if you live in San Francisco, New York or Boston. If you own a parking spot, you can now rent it out through Just Park. In addition to traditional parking spots, you can also rent your driveway. You get paid by others to park in your spot!
· Airbnb and HomeAway. Do you have a room to rent? Do you own a second home? If so, you can utilize Airbnb and HomeAway to rent out your room or the entire home.
· Silvernest. Are you an empty nester? Do you want a companion? Silvernest lets you screen for roommates who are looking for a place to live and share expenses. In addition to earning income you’ll make a friend. This service is best suited for individuals in retirement and whose children are no longer living with them.
· Rent the Runway. Do you have a closet full of clothes you haven’t worn in years? You can rent them out and make some money. You can also rent clothes reducing the need to buy clothes you may only wear once or twice. Fewer clothes means a small closet.
· Etsy. Are you creative? If so, you can sell your items on Etsy.
· TaskRabbit. Are you handy? Can you assemble Ikea Furniture? TaskRabbit let’s you put your hands to work through assembly, installation, or yardwork.
· UpWork. Can you design websites? Create spreadsheets? Write papers? Do taxes? UpWork is a freelancer’s dream in the new economy because you can work from home and help others across the country.
· DogVacay. Are you a dog lover? DogVacay let’s you walk or board dogs for others. You can generate income while walking a few dogs around your block!
These companies, and many more like them, may help you produce more income during your retirement. To generate this income, it might be time to examine your resources and talents to see if you can put them to good use. Happy Sharing!
We keep moving forward, opening new doors, and doing new things, because we're curious and curiosity keeps leading us down new paths. ~ Walt Disney
Behold, the former things have come to pass, and new things I now declare; before they spring forth I tell you of them. ~ Isaiah 42:9
Bill Parrott is the President and CEO of Parrott Wealth Management an independent, fee-only, fiduciary financial planning and investment management firm in Austin, TX. For more information please visit www.parrottwealth.com.
Note: Past performance is not a guarantee of future returns. Your returns may differ than those posted in this blog and investments aren’t guaranteed.