(Centreville, VA, USA)
Retirement can be an exciting time in a person’s career or a terrifying proposition. The difference between the two responses is based on the size of income received after retirement is reached.
To ensure you find yourself on the exciting side of retirement, ModernCents recommends individuals find multiple income streams. The more income streams a retiree has, the more comfortable and secure he or she will feel.
This article will show three different income streams that can be set up immediately. The goal is to build the foundation needed to grow wealth over time. If a strong foundation is not created quickly, time works against you.
The secret to successful income streams is to have time work for you not against you. So, let’s go through ModernCent’s recommended income streams.
Retirement Income Stream #1: Dividends
Stocks that pay dividends are a valuable asset to bring into retirement. The reason why is quite simple. Strong dividend paying stocks will provide the owner a dividend even during tough times in the market.
If a dividend paying stock has strong fundamentals, meaning its cash, debt, and senior leaderships decisions are sound, then bear markets will not drastically impact the amount of dividend being paid. This is great! Dividends can provide a reliable income stream that can be taken into retirement.
How do you start accumulating dividends? The easiest answer is to follow ModernCent’s dividend portfolio in the CENTS Newsletter, or you can do it on your own and use the investing resources available to members.
Income Stream #2: Retirement Portfolio
In addition to buying dividend paying stocks, it is recommended to own basic index funds that follow the market. The idea is to have money automatically invested in index funds so you do not have to worry about the manual investing process.
Index funds are simply a basket of stocks that follow whole market indexes, such as the S&P 500. When you buy an index fund, you are buying the market of stocks, so if the market as a whole goes up, you make money.
But, the idea and goal are much simpler. You want an automatic system of investing that allows you to walk away and almost forget about the money. The idea is to invest over decades into index funds, and then when you reach retirement age, you can have an excellent portfolio to slowly sell off during retirement.
In addition to dividend investing, ModernCents has a retirement portfolio inside the CENTS Newsletter that can help you get started.
Again, the purpose of a retirement portfolio is simplicity. And the more simple an investment is, the more likely you are to actually follow it.
Retirement Income Stream #3: Rental Property
Like any type of investment, you can make things as complicated or simple as you want to. This also includes investing in real estate. However, the purpose of real estate investing is to provide long term reliable income without headaches.
Think about it this way, if you learn the ins and outs of real estate investing and buy a home to rent, then you have secured a stream of income that can last your entire lifetime. So, is it worth it? ModernCents thinks so.
It’s a matter of priorities. Time needs to work in your favor, so take a little bit of time to learn how to buy an investment property in your area and then execute. Don’t delay once you found a deal. Buy the property and rent it out. You will then have another income stream and asset that pays you to own it.
Real estate can be the most lucrative stream of income for your investing portfolio. Seriously take time and consider if investing in real estate is for you. When you begin to think about your goals and expectations, maybe owning one or two extra homes and renting them out to others could provide the security you need in retirement.
However, if you do not think about it and act, then it will never happen. Again, don’t delay. Think and act. This is why ModernCents developed member groups inside its website. It allows people to ask questions and determine what others are saying about specific investing topics.
Overall, investing is a critical aspect of securing a reliable retirement. Remember, the ultimate goal is to have multiple streams of income. The more income you have coming in from multiple avenues, the less risk you will have for retirement. Take control of your future and being building a financial foundation that leads to success.