Many of us see retirement as the finishing line to a long marathon, whereas for many it’s the beginning of a whole new battle. Lifetime savings and pension plans are there to save us, indeed, but the growing inflation and high standards of life can make it quite challenging for many retired professionals. The need to supplement the retirement income is not uncommon for these folks, but often they are unsure of where to begin. No one wants to work after retiring, but with a few simple steps and enough courage, they can earn a few extra bucks, too.
Below are a few ways you can supplement your retirement income:
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Start a coaching program
By retirement, you will have years and years of experience in your field. The best way to use this experience to earn some money is to teach the skills to people who need them. The skills can be both hard and soft skills. You need to find a platform suitable for coaching.
Various online teaching platforms accept courses on diverse skills. You can teach software, a method of operating a business, or a soft skill. You might need to record videos and use whiteboards for the lecture. Check with the online teaching platform to see their policies and rules on uploading the videos on their platform.
Another alternative is to open a YouTube channel and upload the videos there. In that case, you might need some branding skills to gather an audience.
If you’re uncomfortable with videos, you can write small booklets (or books) and self-publish them on Amazon and other platforms. A more traditional approach would be to open a brick-and-mortar coaching center with scheduled lessons.
Open a small business
If you’ve always wanted to open a business but never had the time or the required capital, this might be your chance to give it a go. At this point, you should have access to money and expertise to start a small business.
Choose a product or service you’re passionate about, and build a brand that can serve people for years to come. If you’re unsure about it, find out what you’re good at and how you can turn it into a product or service that people are willing to purchase to make their lives better. It could be cooking, baking, selling plants and seeds, doing taxes for others, babysitting, cleaning, or anything else you’re adept at. Prepare a short-term and long-term business plan and jump right into it.
Get reverse mortgage
While reverse mortgages might seem risky to some homeowners, many choose them to supplement their retirement income without any hassle. If you’re unable to start a business or look for a new job, you can opt for a reverse mortgage. The requirements are simple – be above the age of 62, have good health and a promising life expectancy, and own a property which is in a good condition.
A reverse mortgage can easily be mistaken for a way to earn tax-free income while still owning the piece of property. However, it doesn’t come without conditions. Make sure to study reverse mortgage pros and cons before opting for it.
To get a clearer idea about the process and what you take away from it, consult a mortgage expert or talk to someone who’s been through the process.
Become a consultant
As a retired professional, you are likely to have years of experience in your field. The best way to use that to supplement your income would be to open a consulting firm. Help other businesses with project management, human resources training, finance and accountancy, marketing strategies, or anything you are an expert at.
New and small businesses are always looking for fruitful consultations that can generate more leads and boost their sales, and they are willing to pay well for it. Getting the first few clients might be a challenge for you, but once you build a name, the rest of the journey will be much smoother.
Other than opening a firm, you can work as a freelance consultant on various online marketplaces such as Upwork, Fiverr, and Freelancer. The competition is much higher there, but the chances of exposure are also much greater.
Rent out your property
Owning a piece of property and renting it can help you easily supplement your income. You can either rent your entire house or just a floor – in case the latter has its separate entryway. You can also rent your house by season or choose to rent it out all year round.
Listing your property on local renting websites might be a good place to start. If you’re renting it seasonally and to travelers, you can enlist it on apps like Airbnb and Trivago.
Besides fetching income from the rents, renting out your house can also be eligible for tax exemptions. Check the IRS or local property tax website to check if you’re eligible.