Retirement finance is often thought of as a two-phase process. Save money for several decades, and after retirement, spend several more years to spend that same money. But it is not the only way. One shouldn’t be totally dependent on retirement saving accounts.
There are various other ways to keep the cash flow after you say goodbye to your office desk. Creating more sources to support your retirement fund will take the pressure off your nest egg.
A professional financial advisor in Melbourne suggests the following can be the sources for your retirement income. Decide what your goals are beforehand because some of these sources can give healthy monthly returns, while others can provide a little to only fulfill daily needs.
- Income Investing
Throughout your saving years, you should make your investment portfolio around growth stocks, shares that show steady growth in value over the years. But as you close into your retirement, consider shifting your focus to interest-generating assets, including stocks that offer regular dividends, and bonds, which offer better interest. You may also want to look into investing in the real estate market. Since you are in savings mode, income generated by the following ways should be re-invested to keep the nest-egg growing. So when you retire, all the money can go directly to your bank account.
- Rental property
Investing in rental property is a stable and secure way to make some money if you are ready to take a challenging role of being a landlord.
If you are shifting at the time of retirement, instead of selling, consider renting your place. If your retirement accounts are fully funded, try to invest in a rental property with the remaining money.
Real estate is a tough business and not as easy as it seems. Prices can fluctuate regularly, market flops, and hit the skies in a short period of time. Make sure to educate yourself about the market’s ins and outs. The teams of professional property mentors in Melbourne at 10 properties in 10 Years are doing a great job in guiding and making tough decisions easy for you in the journey of property investment, as managing rental property can get tough.
- Part-Time Jobs
Consider part-time jobs, especially in the early years after retirement you may not be used to sit at home the whole day. A part-time job can provide you with some good money, even if you work as little as 10-15 hours per week. Plus, a part-time job will help in providing structure, social circle, and a sense of purpose, which is really necessary to a satisfying retirement. Don’t go for any job to make some money, try to get into a work where your passion lies.
Pensions may be a thing of past for the private sector, but they still have a stronghold in the public sector. Since every dollar counts, so if you have done several jobs in the past, better check if you are due any pension benefits.
It’s a wise decision to work on retirement plans beforehand. If you are considering investing in property, you can reach out to 10 Properties in 10 Years, where our expert property investment strategists in Melbourne will guide you through the complications of the property market and will save you from the hassle. You can contact us at +61 452 238 490 or leave us a message at [email protected]