Creative Ways to Add Income in Retirement
Building a stable income during your retirement years can require locating creative income streams to bridge the gap between traditional income sources and cash flow requirements. Creating income from a variety of places can lead to stronger financial stability and can make up for underfunded retirement accounts.
A few ways to form additional income can include passive income, part-time employment, HSA Accounts, and income from your home.
Passive income commonly thought of as money you do not actively work for can be very beneficial in retirement because the bulk of the time spent establishing consistent income happens during your working years. Examples could income a business you own but do not operate or rental income.
Part-time employment increases retirement income, reduces boredom, and keeps you active. Jobs that take advantage of hobbies or working with an organization you love are good places to start.
HSA Accounts or Healthcare Savings Accounts you can fund during working years to set aside money and gain tax-free growth to pay for healthcare costs in retirement. You may contribute up to $6,750 for a family, $3,400 for individuals, and those over 55 can add an extra $1,000 each year until you reach 65.
Income from your primary home may come in three forms. You might pay off the mortgage to reduce the cost of housing by as much as 30%. You can add an equity line of credit to the home, giving you the ability to turn equity into cash, in the event of an emergency. With a large amount of equity, you could also consider a reverse mortgage, which eliminates the mortgage payment and can provide an infusion of cash to use for retirement needs.
Establishing more income during retirement will help you live a comfortable life on your terms, without sacrificing your lifestyle.