If you’re worried about your ability to fund retirement, you’re not alone. It’s a common and understandable anxiety. However, it’s also a concern that can be resolved with advanced planning and a little creative thinking.
One way to resolve an income gap or a funding problem in retirement is to generate a stream of supplemental income. You will likely have income from Social Security and possibly a pension. You may also have personal savings, such as an IRA or a 401(k), from which to take distributions.
For the past 16 years, Gallup has conducted an annual study surveying working Americans about their top financial concerns. In every survey, the No. 1 concern has been “not having enough money for retirement.” In the 2016 edition, 64 percent of Americans named this as their top concern, up from 60 percent in 2015.1
If all of those sources don’t provide enough income to fund your retirement, you could look for ways to generate additional cash. You probably don’t want to work full time so you can enjoy retirement. However, there are plenty of ways to generate extra income without restarting your career. Below are four popular ways to earn extra income in retirement and still enjoy your free time:
Get a seasonal job.
You may not want to work full time, but what if you worked for only part of the year? The summer offers plenty of opportunities to earn extra income. You could work as a ranger at a golf course, or at a local park or zoo. In the winter, you could possibly work at one of the many retailers that need extra holiday staff.
By working seasonally, you can supplement your income and refill your bank account during just a few months each year. Then, in the offseason, you can participate in the trips, hobbies or other activities that make your retirement more enjoyable.
Become an industry consultant.
Was your employer sorry to lose you when you retired? Was the company unsure of how it would replace your decades of accumulated knowledge? If so, you can bet that other companies would also value your expertise.
Launch a career as a consultant. Offer up your skills, knowledge and advice to your former employer and others in the industry. The best part about consulting is that you get to choose who you work with and when you work. Want to take a few months off? You have the power to do so.
Perhaps you have a special skill or passion that others would like to learn. If so, why not make money teaching that skill, either in person or online? For example, if you know how to play an instrument, you could give lessons to kids in your area. If you’re great with dogs, you could teach obedience.
You may have a skill that you developed during your career. Research your industry to find opportunities to teach that skill. Perhaps you could teach courses at a local vocational school. If you’re internet-savvy, you may even be able to teach online.
Join the sharing economy.
In the past few years, something called the “sharing economy” has taken the country by storm. The sharing economy is simply the ability to rent out your car, house, tools or other assets to those who need them for only a short period of time. For example, Uber allows car owners to give rides to passengers in exchange for money. Airbnb lets you rent out your home, apartment or even an unused room when you’re out of town.
The sharing economy isn’t for everyone. However, if you’re comfortable with strangers using your property and you are savvy online, this could be a great way to earn supplemental income.
Worried about your retirement income? Let’s talk about it. Contact us today at Bridgeriver Advisors. We can help you determine how much income you need and what changes you should make. Let’s start the conversation today.
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