There are no shortage of discussions about how retirees can catch up on retirement savings when you one is starting later in life. While it is obviously a very important topic for a large percentage of the Country, articles that the one linked above make me think about something related but unrelated. I don’t want to have to depend on the type of information provided 20 or so years from now, which brings me back to a topic I haven’t thought about in way too long.
I believe that creating multiple streams of viable income provide the key to my financial success as each one created relieves the pressure from the other streams of income. I do not believe I’ll be in a situation in the near future where these ancillary streams match my day job (both in terms of income and non-monetary factors), however, if I can build a few that provide some relief from the stress on that stream I’d be a very happy man.
Building a Retiree’s Income Early
In my very limited experience successful Retirees often have multiple streams of income regardless of whether they were intentionally created. These streams of income include:
- Dividend Income
- Bond Income
- Qualified Disbursements
- Insurance based products
- Side business / rental income
I am currently building my dividend income stream.
I do not think I’ll have the opportunity to build a bond portfolio anytime soon. I started looking to individual bonds and I don’t think I have anywhere near the ability to research them in a manner even close to consistent as professional fund managers. However, I am not entirely comfortable purchasing a bond fund (in any large amounts) because bond funds tend to decrease in value when interest rates rise. Interest rates can’t go much lower.
I think it is unlikely that I’ll ever work in a position that provides a traditional pension. Notwithstanding, I think there is some opportunity to use an insurance based product to build my own pension. I think I should move this up in priority as it will need time to season much like a more traditional retirement account (or any investment account).
I am hoping not to include qualified disbursements as it is my hope that the above income streams provide relief to my qualified disbursement (other than mandatory minimums) much like they would my salary.
I just admitted to everyone about the business I’d like to own in the near future, but nothing is going to happen with that idea until I am done with my next home purchase.
Or maybe this entire post is moot as I am so early in my life that I have other things to worry about and maybe that is why articles like the one above exist.
Are you currently retired? What streams do you have? am I way off base?