Do you know anything at all when it comes to investing? If you do, you will more than likely be familiar with diversifying your investments. You know, not putting all of your eggs in a single basket. We can refine this theory when it comes to diversifying your retirement income. See, it is nearly impossible to tell when a recession or high inflation will happen. We don’t know when the interest rates will fall or rise, or even how the stock markets will perform. By diversifying your sources of income in retirement, you will be able to withstand the various economic challenges by being prepared. In a nutshell, this means having money coming from more than just Social Security when you retire.
You might not consider this to be a form of income, and you would be right. Home equity isn’t taxed, therefore, it is not a form of income. You can monetize that equity though… if you meet a few requirements. Are you eligible for a reverse mortgage? Well, are you at least 62 years old? Have you completely paid off your house, or at least have paid it down considerably, almost to the point of having it paid off? Do you plan on living out your years in that home? If you answered yes to those questions, you might be eligible for a reverse mortgage.
Reverse mortgages are a type of home loan that does not need to be repaid while you are still residing in the home. They allow for you to get money from your home equity in the form of a line of credit, a lump sum, or monthly payments. They are easier to qualify for than other types of mortgages, too. You don’t need to meet any sort of income requirements or credit requirements.
Believe it or not, if you have a hobby, you can turn it into a way to make money after retirement. I will use my dad as an example here. Dad is a welder and has been for as long as I have been alive. He will be retiring next month. He has always had a hobby of working on motorcycles and engines and he can fix anything… sometimes it seems as if all he has to do is lay his hands on something to bring it back to life. After he retires, he plans on monetizing this hobby by opening a motorcycle repair garage at his home.
You don’t need to work with engines to do this, though. Almost any hobby can be monetized with the right attitude. If you paint, draw, take pictures, or even sculpt, you might be able to sell your wares at art shows or even flea markets. You might restore antique furniture, and there is a huge call for this all over the country. What is your hobby? What can you do to turn it into a form of income?
There are quite a few careers out there that can be converted into seasonal or part-time consulting arrangements when you retire. Consider this, maybe you worked in sales and marketing for your career. You might be able to pick up some work for other companies that are engaged in the same type of business. If you happened to manage a restaurant, you might be brought on as a consultant for another restaurant.
The concept is to take all of the experience that you got while you were working and turn it into a program where you will be able to sell that expertise. It might be for an hourly fee or a flat rate. Either way, this is a great way to diversify your retirement income.
It is important to have a plan in place for when you retire. The chances are more than good that your income will not be what it was when you were working. Build a foundation for your retirement and it will be less of a struggle for you when the time comes. You can plan on investing while you work, or doing any of the ideas mentioned in this article. The point is to be prepared for whatever retirement has planned for you.