The best retirement income for 2021

There are two types of income you can have (according to the IRS). This is active (or earned) income or passive (unearned) income. The difference is how you get it and how it’s taxed

How to make money in retirement

Active income is money that you trade your labor for. I do that part-time.

The easiest way to supplement your retirement income is to continue working, either full-time or part-time. Provided you are physically and mentally able to continue working. It is very important to be mentally fit. If you are unhappy with your retirement job or don’t like what you do, it can have a negative impact on your physical health.

active or earned income can be done almost immediately, however passive Generating income takes time and usually requires some upfront investment.

Everyone knows how to earn active income. You work for it and get paid for your work. Many retirees, myself included, do this either full-time or part-time. In fact, I worked part-time for about ten years in the same job I retired from.

What I want to address is passive income. You’ll need to put in some work to get it going, but once the money starts rolling in, there may be very little you need to do other than maintenance to keep it running.

If you are willing to invest some research, study time and money, NOTHING BEATS PASSIVE INCOME..

How do you make passive income?

Passive income is what you don’t trade your labor for. This can include investments, residual income, affiliate income, or rental income.

Passive Income always takes a while to start. As I mentioned earlier, getting started in this type of income stream is highly dependent on how quickly you need extra cash. I’ve listed four sources of passive income and there are probably many more, but these may give you food for thought.

investment income: People who have invested in the stock market, either directly or through mutual funds, have made a lot of money since November 2016.

Investing in the stock market is probably the greatest financial risk, if done carefully it can be the most lucrative. There is tons of information that could be useful in making an informed investment decision.

Personally, I would start by learning how to invest and then start with a small amount of money that I could lose without worrying. It might be beneficial to do some simulated stock trades to learn how the process works.

Affiliate Marketing: Building an online business takes a long time. Every success story you hear about overnight comes after months or years of research, study, and hard work. But if you have an idea for a service or product that can be done online, it might be worth pursuing. Think Angie’s list, eBay or Facebook.

Affiliate marketing requires the skill and knowledge to develop a website and content that fits the affiliate programs. There are many Amazon online retailers that offer affiliate programs. Look for niches, products or services that you would consider.

Rental income: If you have enough money to buy a few rental units, this may be the best way to supplement your retirement income and leave a legacy for your family. Find out about multi-family houses, apartments or commercial properties and see what is available in your area. I know a guy who took equity out of his home to buy a rental unit. It worked for him, but it’s an idea that may not be for everyone.

Don’t step into the landlord role without learning how to be a landlord. It’s about much more than just buying and renting a property. There are government regulations that must be followed and tax regulations that must be considered.

If you decide to become a landlord, look for information about buying and owning rental units. Get a spreadsheet to put in some numbers and see how certain properties bring in income. Find out about the tenant/landlord laws in your area and get advice from a real estate professional you trust.