Learning to live off of a pension, savings, and social security can be intimidating. Retirement should be the time you get to sit back and relax comfortably in life, not fret over expenses. Matthew Bussard provides financial services to retired individuals across Rhode Island. Here are his recommendations for how to earn extra income during retirement, so you can live out your golden years without financial concerns.
Dividends
A dividend is a payout of a company’s earnings—either cash or additional stock—to its shareholders as determined by the company’s board of directors. Low-risk stocks, mutual funds, and exchange traded funds that pay dividends can be lucrative enough to even supplement your Social Security and pension income.
Invest modestly and wisely: there is no guarantee of a return on investment in the stock market. It may help to recruit the assistance of a financial advisor to help select investments that are right for you. Make sure the financial advisor you choose is a fiduciary, a person or entity required by law to put their client’s needs ahead of their own when a conflict of interest exists.
Certificates of Deposit and High-Yield Savings Accounts
A safer option than investing in the stock market is to obtain a FDIC-insured certificate of deposit or high-yield savings account. The federal government backs FDIC-insured investments up to $250,000. Certificates of deposit and high-yield savings accounts do not generate as much as a stock with dividends, but they come without thestock market’s volatilityt.
Babysit or Be a Mother’s Helper
If you have the experience of raising a family, now it’s time to make some money off of it! Put the word out to your friends and neighbors that you’re interested in babysitting. You can also use websites that families go to search for experienced caregivers.
Rent a Room in Your House
Take advantage of renting out your little-used guestroom or study. For short-term stays, you can use the online platform Airbnb, which connects landlords and potential renters. Airbnb charges additional fees to landlords and renters, so for long-term rentals, you may want to try doing things the old-fashioned way. Post an advertisement on Craigslist or hang flyers around town, like at a college or coffee shop. Many colleges also have an internal department dedicated to helping students with finding off-campus housing; connect with local colleges to see if you can get listed in their housing registration system, which many students and parents trust more than traditional online housing listings.
Teach a Language, Hobby, or Skill
You’ve picked up few tricks over the years; now it’s time to share them. Maybe you’re bilingual or an incredible painter. Post a service advertisement on Craigslist and hang paper advertisements at libraries, bus stops, schools, and cafes. You may be surprised at how many people are interested in learning your expertise!
Consulting or Coaching
If you have a background in finance or corporate environments, consulting and coaching are great ways to continue making money off your experience without having to put in the 9-5. Soon-to-be retirees may want to talk to their current employer about phasing down, where you can offer consulting services in a familiar environment.
About Matthew Bussard
Matthew Bussard is a financial services broker offering support to Medicare users in Rhode Island. He is passionate about creating a difference in his clients’ lives by helping them enroll in Medicare with professionalism and care. Mr. Bussard volunteers with Medicare recipients at clinics, providing efficient, continual guidance to clients every step of the way. Matthew also participates in various charitable activities, including The Hunger Project, the MDRT Foundation, local clean-ups, and little league coaching. He donates to local charities and makes a difference in his community in every way possible.