Posts Tagged ‘passive income’
Guaranteed Income For Life. Is it Possible?
People often get confused especially when they are about to retire or quite their jobs or when they lose their jobs and it is glaring that they may not get another in the immediate future. The last resort is seeking for a guaranteed income which can be sustainable for a lifetime period. The fact is that there is few reputable guaranteed income for life opportunities out there but you will need to make a careful research and considerations before going into any.
A guaranteed income for life experience starts with disciplined personal saving culture. You need to save for the raining day- a time where you wouldn’t have the time to work anymore. Investing your savings is the next step towards a guaranteed income for life. Annuities are believed to generate up to 40% or more of what you will get when you invest in stocks and bonds.
The reasons why annuities are far better than stocks and bonds is that you will pool your resources together with other investors thereby sharing the risks and the expanding your investment options- the more people within this annuity group the more your chances of having a guaranteed income for life.
Deferred variable annuity is another option of guaranteed income for life. It allows you remove a substantial part of your interest and the more your interests remain in the overall investment pool, the higher you earn. It operates like a Mutual Fund setting and allows annuitants to invest in stocks and other juicy investment options. No matter how the market performs, you will be guaranteed a minimum regular income for life.
There are some guaranteed income generating internet business which most people do not take importance off. E-book writing and publishing for instance is a one-time investment which can generate regular income for life. Get materials of what people want most and write about such things. The more you write the better it is. People will either want to buy such e-book or pay royalties on them whenever they want to use them. There is no need to spend money on publishing, just put it online and secure it and you can resell for as long as you want.
Stocks and Bonds are some of the viable ways of getting a guaranteed income for life and this depends on the performance of the stock exchange market. One good thing about this is that you can invest in stocks when the market is performing low and reap your benefits when the market performance improves. Annual premiums are paid to investors and you can sell all or parts of your shares when you think the market has appreciated enough or when your stock broker thinks the market may come down for some time.
Investment is the best way of making guaranteed income for life, if you think you can achieve a guaranteed income for life for free then you might be deceiving yourself. There are several other businesses you can invest in which are either home based or otherwise. All you need to do is search for the genuine ones.
Retirement Planning. How to Plan and Create an Income during Retirement?
Retirement Planning is one of my pet peeves and even though I have not been posting for quite a while does not mean I am off the subject J. Over the last few months, I have been re-organising my finances and taking on new challenges of managing a new organisation that have taken up most of my time.
I know most of us do not think about retirement planning most of the time and that planning for retirement can sometimes be one of our last priorities when we are faced with loads of work and family issues; myself included. However we should engage some of our time for this activity and anyway planning for retirement should not be a worrisome activity and it can actually be fun thinking about what we want to do after years of working. Retirement with at least one million dollars would certainly be fun.
In this post, I want to address the issue of planning for your income during retirement. For many of us, our plan is to save sufficiently so that we can draw from the nest egg, with whatever we can also withdraw from our corporate pension plans or Social Security, to last us for 20 to 30 years. For others, their plan is to be able to create an additional income source that could either be passive such as rental income or investment returns, or from a home business or even online business such as Ebay or general internet marketing.
My thinking about planning for retirement income is bias towards an income from small businesses and property investment. Small business, especially businesses which provides basic necessities to the people staying in your neighbourhood, are more resilient against market movements but the returns may not be spectacular.
Cafes serving students in the local university or college, local unpretentious hair saloons serving the local community, grocers and even a magazine shop can provide a nice little income while keeping ourselves active. Taking the idea further, this would mean an investment into several of such businesses with or without a few active partners. Even in businesses, I believe in diversification and investing in a variety of businesses, providing essential services, will be a strong component in our retirement plan.
Go look at what the local shops are doing. Talk to the ladies running the hair shop and understand their operations, talk to the manager running the college café and you will see that creating a few little businesses is not a daunting tasks. The income you derive from such small businesses, after paying all your staff, may not buy you that Ferrari but it will be more than enough to pay for that holiday in France and a great bottle of pinot noir in Burgundy. Go try the Boeuf Bourguignon in Beaune and you will love your retirement. We want to enjoy our retirement so go plan for how you will create that retirement income.
