Posted on: 29 February 2016
Planning now for your retirement is smart if you want to be able to live peacefully and happily after you are on longer able to work. Putting money in savings is always a good idea, but it's also nice to have an income stream coming in after you are no longer working. These are a couple of potential income streams that can last through retirement and provide you with much-needed money month after month.
Invest in an Annuity
Investing in an annuity can be a smart way to plan for your retirement. One main difference between an annuity and an IRA or other retirement account is the fact that you can invest as much money into an annuity each year as you want. You don't have to worry about contribution limits, and the taxes are deferred. Even though you can choose to take out all of the money when you cash out, a smarter option -- if you are interested in having a nice income coming in each month in retirement -- is to opt to have it paid back to you in monthly payments.
Invest in Rental Property
Renting out houses, apartments or even commercial buildings can be a wonderful way to bring in an income. If you plan smart -- such as by investing in fixer-uppers, doing some of the work yourself to fix them up and then renting them out -- you can make a nice living doing this, even now. It's a good way to boost your income now and in the future.
If you focus on paying off your properties while you are still working instead of just enjoying that extra income, however, you can maximize your income in retirement. Then, as long as you maintain your properties, you can bring in a nice rental income each and every month. If you find yourself in need of emergency cash in retirement -- such as to cover unexpected medical bills or to handle other emergencies -- then you can always sell one of your properties. Basically, investing in rental property provides you with a nice income and a nice plan B for after you retire but can also be beneficial to you now.
As you can see, you can start working on income streams now that will allow you to enjoy a nice monthly income once you retire. These are two possible options to look into. Alternatively, you might decide to do both to make retirement even easier!Share