Retirement Income Streams: 10 Diverse Approaches by Business Leaders
In search of diverse income streams to bolster retirement finances, we’ve gathered wisdom from ten experts, including Chief Financial Officers and founders. They share strategies ranging from seller-financed real estate for passive income to investing in art and collectibles. Discover the varied and creative approaches these professionals are using to secure their financial future during retirement.
- Seller-Financed Real Estate for Passive Income
- Flexible Deferred Annuities for Retirement
- Dividend Stock Portfolios
- Renewable Energy Investments
- Real Estate Flipping and Renting
- Freelance Writing as Retirement Income
- Crowdsourced Knowledge Curation Licensing
- Consulting Services for Retirement Profit
- Real Estate Investment Trusts
- Art and Collectibles Investment Strategy
Seller-Financed Real Estate for Passive Income
If you own real estate, selling a home with seller financing and holding a mortgage note as a retiree offers a fantastic opportunity for passive income. By selling the house, you’ve eliminated the responsibilities of dealing with tenants and repairs, allowing for a more hands-off approach to real estate investment.
With steady mortgage payments coming in, you can enjoy a consistent stream of income without the hassle of property management, making it an appealing option for retirement financial planning. If you ever decide to liquidate the mortgage note because you need a lump sum of cash, you can sell the mortgage note. Therefore, mortgage notes are a great and flexible investment strategy during retirement.
Abby Shemesh
Chief Acquisitions Officer, Amerinote Xchange
Flexible Deferred Annuities for Retirement
As retirement time looms and then becomes a reality, everyone’s individual investment strategy should adapt. One income-building strategy I recommend is to learn about the availability and applicability of a Flexible Deferred Annuity.
Many financial institutions offer variations of these specific annuity vehicles, including those with a chosen performance cap rate and segment buffers. This tool also offers a vast selection of timelines for the investment. Interestingly, tied to each instrument is a selection of risk-taking choices, each with a defined “ceiling and floor” for which various segment types (S&P or Russell 2000, for example) swings are calculated. In a given year, should the S&P swing to the downside, the percentage risk for a loss is minimized; additionally, the upswing is limited to offset this scheme.
As is always true, no investment is right for every investor, and certainly not even right for every investment time in your lifecycle.
Ashley Kenny
Co-Founder, Heirloom Video Books
Dividend Stock Portfolios
One investment strategy I have researched extensively as an additional income stream for retirement is building a portfolio focused on dividend stocks. The appeal of dividends is the consistent passive income they can provide, which serves as a supplement to other retirement savings and Social Security. I would build a diversified portfolio of stocks from sectors like consumer staples, utilities, telecoms, and healthcare, which have companies with long histories of consistent dividend payouts and modest growth over time.
Specifically, I would invest in Dividend Aristocrats—S&P 500 companies that have increased their dividends annually for 25+ consecutive years. This helps ensure you receive rising income to help pace inflation. Companies like Coca-Cola, Procter & Gamble, and Johnson & Johnson represent some appealing options. Though dividends from individual companies may seem small, building a portfolio of 20-30 such stocks over time can result in a healthy aggregated quarterly/annual dividend income.
Additionally, I would reinvest the dividends to compound returns over decades. This allows me to build my positions in the companies slowly over time. When I reach retirement, I can then turn off the reinvestment and instead transfer the steady dividend payments to my bank account to help support living expenses. This provides inflation-resistant cash flow in retirement without having to sell off the underlying stocks.
Brian Meiggs
Founder, My Millennial Guide
Renewable Energy Investments
One alternative income stream I’ve explored for retirement is investing in renewable energy projects. Given my background with DeepPower and our focus on sustainable energy solutions, I see immense potential in this sector. Renewable energy investments not only offer financial returns but also align with my passion for sustainable development.
By investing in projects like solar farms or wind energy, I’m supporting a sector that’s crucial for our planet’s future while also ensuring a stable income stream. This approach allows me to contribute to a greener future and secure my financial needs during retirement.
Andrew Van Noy
Founder & CEO, DeepPower, Inc.
Real Estate Flipping and Renting
Seeking alternative income streams for retirement, I ventured into real estate investment—a sector distinct from my digital expertise, yet offering substantial passive income potential. This strategy involved purchasing undervalued properties, improving them, and either selling at a profit or renting them out.
The key to success in this venture was thorough market research and leveraging professional networks to identify the best opportunities. Real estate investment demanded a significant upfront commitment but proved to be a lucrative avenue for diversifying my income portfolio. It taught me the value of exploring opportunities outside my comfort zone, applying analytical skills honed in the tech industry to a completely different field, thereby ensuring a more stable and diversified income for retirement.
Kripesh Adwani
Founder, Kripesh Adwani
Freelance Writing as Retirement Income
Though I can’t personally say I’ve retired, many retirees find success with freelance writing and content creation. It offers flexibility, scalability, and the chance to share their expertise. From blog articles to e-books, ghostwriting to social media content, retirees can leverage their experiences and craft compelling narratives.
Remember, strong writing skills, research prowess, and marketing hustle are key. This path empowers retirees to earn income doing what they know and love, potentially shaping a fulfilling and financially secure post-work life.
Michael Branover
Business Development Director, Branover Contractors Inc
Crowdsourced Knowledge Curation Licensing
I can access and process vast amounts of financial data, allowing me to explore various income streams and investment strategies. Here’s one interesting option: crowdsourced knowledge curation and licensing.
Imagine a platform where experts in various fields can contribute their knowledge through curated datasets, summaries, or even training data. This platform could then license this valuable information to businesses, researchers, or other AI models, generating income for the contributing experts. This model leverages the expertise of individuals while creating a passive income stream.
This is just one example, and the best strategy will depend on individual circumstances and risk tolerance. It’s crucial to conduct thorough research and seek professional advice before making any investment decisions.
Alex Lirette
Founder, Orbital Seo
Consulting Services for Retirement Profit
Many mediums are available for people to leverage their skills or expertise for financial profit, irrespective of factors like age. I suggest providing consulting services as an interesting and profitable option to try for additional retirement income.
People can spread their expertise to prospective clients via digital platforms in a guidance-like manner and profit from that. While I have not retired yet, I have started focusing on retirement planning. Besides my regular responsibilities, I offer consulting services to individuals who are seeking legal or financial advice. Also, I provide information on various topics related to my field through mediums like blogs.
Doing this regularly will be less strenuous than full-time work, and you will not have to deal with strict deadline-related constraints either. Plus, you can establish brand authority this way. For retirees, it is a great way to monetize their skills in retirement, and that’s why I highly recommend it.
Loretta Kilday
Debtcc Spokesperson, Debt Consolidation Care
Real Estate Investment Trusts
One alternative income stream or investment strategy I would consider for retirement is Real Estate Investment Trusts (REITs). REITs are companies that own or finance income-producing real estate across a range of property sectors. They provide a way to invest in real estate without having to physically own properties. This can generate a steady income stream through dividends, which can be particularly beneficial during retirement.
Moreover, REITs offer the potential for capital appreciation, providing a hedge against inflation. However, like all investments, REITs also come with their own set of risks, and it’s important to thoroughly research and consider these factors before investing.
Ricardo Ferrer
Chief Financial Officer, Culture.org
Art and Collectibles Investment Strategy
One distinctive income stream I’ve explored for retirement is investing in art and collectibles. By acquiring valuable artworks, rare coins, or vintage items, I’ve diversified my portfolio beyond traditional investments.
These tangible assets not only have the potential for appreciation but can also be enjoyed as a hobby. They offer unique tax benefits and can be passed down as inheritances, making them a tailored strategy that adds both financial and personal value to my retirement plan.
Mark Sheng
Project Engineer, DoDo Machine
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Greg Grzesiak is an Entrepreneur-In-Residence and Columnist at Grit Daily. As CEO of Grzesiak Growth LLC, Greg dedicates his time to helping CEOs influencers and entrepreneurs make the appearances that will grow their following in their reach globally. Over the years he has built strong partnerships with high profile educators and influencers in Youtube and traditional finance space. Greg is a University of Florida graduate with years of experience in marketing and journalism.
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