Browsing Category: "Retirement Income"
A Internet Home Business- Your Path To Extra Retirement Income
With the current recession many people are concerned about their retirement nest eggs. Regardless of the economic conditions having all of your eggs in one basket is never a wise decision.Robert Allen wrote about multiple streams of income in a book a few years ago and the concept is more important today. Having a good pension from your employer and a monthly check from social security in all likelihood will not be enough.In today’s economy it is vital to have multiple streams of income for both now and in the future to provide you with extra retirement income. Contributing to an employer sponsored 401k and investing in stocks or real estate are vital to your path towards financial independence.Another option that should be considered is starting a Internet home business. Affiliate marketing continues to grow on the Internet and people are making serious money from home. The key to success is to consider your business as another income stream opportunity.Over the past year millions have lost there jobs and there livelihood as once financially strong companies have struggled. With multiple streams of income if one is lost or decreases you are not immediately impacted. With a Internet home business you slowly grow your business while your other income streams continue. If you are unfortunate enough to lose your job you already have another income stream to fall back on.As your Internet home business grows you will be able to contribute additional funds to your primary retirement funds, 401k, Roth etc.. Using this method of multiple streams of income will eventually allow to enjoy extra income for retirement.A wise Internet marketer once said they would rather make $100 a month from 200 different programs, then they would to make $20,000 a month from one. This could never been more true than it is today in a faltering worldwide economy.Internet marketers have more opportunities to create multiple streams of income than anyone ever had in the past. You do this by representing different products in different niches. Or by joining different programs in the same niche, but make money selling products in getting checks from multiple companies.While the example of making $20,000 a month is a bit far fetched. With a simple website and a blog or two $500 in a few months is real possibility. As the monthly income grows invest half in the business and the other half in your retirement funds. In a matter of a few years you have secured the goal of extra retirement income. Remember it is your responsibility to protect your retirement nest egg. By creating multiple streams of income now you can ensure extra retirement income for the future.
Looking For Retirement Income
Most people think of retirement as a way to finally get away from work. Put up their feet and do what they have always wanted to do. Go travelling, see exotic places Some of them, though, find that they don’t have the required savings to do what they wanted, or have the money, but are bored with doing nothing, so find something else they really want to do.
The fact is, you can make surprisingly large retirement income. Retiring can be a great beginning for a new life that you’ll actually enjoy. You can set up your own home business on the internet, and you’ll be able to work wherever or whenever you like, on your own terms and to your own schedule.
An entrepreneur who runs a home based business, though, will find it different from working a 9 to 5 job. A lot of people are retiring and starting up their own businesses, along with all of those baby boomers, who are thinking about starting up when they retire.
You can build retirement income for yourself and have something to leave for your children and grandchildren with a home based business. You shouldn’t expect to become rich overnight, though, because that’s not realistic. Having an Internet business should be seen as a way to supplement the pension that you will be paid after retirement. You might end up wealthy from working at a home based business, but most individuals don’t see that kind of return.
They do, however, see their retirement income supplemented with their home based internet business and they enjoy their work as an entrepreneur. Making money online is one thing that is important to the baby boomers, because they want to make more, but they don’t want to have to work for someone else. To supplement your retirement income in retirement, you can do it easily and in a more enjoyable way as an
Retirees Should Use Stocks For Retirement Income
An issue that plagues many retirees is how to manage retirement income in the face of the increasing cost of living. Even with moderate inflation, costs of living tend to increase over time. This can reduce the retirement income retirees can obtain from fixed income investments, even while they must meet higher expenses. Where can you find a source of retirement income that can keep of with inflation, along with your expenses?
Our suggestion: consider putting some of your money into a portfolio of large capitalization dividend-paying stocks as an income generation alternative. This retirement investment could help to provide you with a retirement income that keeps pace with the rising costs of living. For the 30 years ending 12/31/04, the stream of dividends from an investment in a basket of stocks representing the S&P 500 index generated a growing stream of income. During that same period, interest rates from CDs fell 7.42% to 1.85% (the S&P 500 is an unmanaged group of securities considered to be representative of the stock market in general; it is not possible to invest directly in an index).
Data 1/1/75 through 12/31/04. Dividends based on a $10,000 investment 1/1/75 in a basket of stocks representing the S&P500 from American Funds Distributors. Interest rates from Federal Reserve year end rate on 6 month CDs. You cannot invest directly in an index. Past performance is not a guarantee of future results and an analysis of a different period may have revealed different results.
Although publicly traded stock can help you to manage inflationary risks, the dividends that these stocks pay out are highly dependant upon the overall profitability of the issuing company. Therefore, you will want to strongly consider the dividend payment history of the company prior to making such a retirement investment.
A few additional things should be considered about stocks and CDs. First publicly-traded stocks tend to be suited for investors that are seeking asset appreciation and are willing to take on the additional investment risk. On the other hand, CD’s are suited for investors that are concerned about preserving their principal investment and are adverse to market risk. With this in mind, it should be remembered that CDs are FDIC insured while publicly-traded stocks are not. The values of publicly-traded stocks fluctuate in value and may result in either a gain or loss upon sale.
The retirement income from these investments is also subject to differing income tax rules. Stock dividends are generally subject to federal income tax of 15%, while CD interest is taxed as ordinary federal income tax rates, which can range anywhere from 10-35%. CDs may have an early withdrawal penalty if money is taken prior to maturity. On the other hand, the stock of most largely capitalized companies can typically be purchased and sold at any time when the market is open.
But as you can see from the chart at http://www.retirement-income.net/income_basics.html, stocks beat CDs hands down for retirement income.