Retirement Income - Four Ways To Build Multiple Streams Of Retirement Income
Having only one source of retirement income is foolish, and dangerous. Let's say you only have one source of income for your retirement years - Social Security. Not only is Social Security not enough to live on, it will likely fail! You need to build multiple dependable retirement income streams.
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You see, Social Security, like all socialist programs, is doomed to fail. In my opinion, Social Security is much like a Ponzi scheme!
Like all Ponzi schemes, Social Security requires future contributors (taxpayers) to pay current recipients (retirees). For this to work, there must be more current taxpayers (Generation X & Y) than recipients (Baby Boomers). There isn't!
Families are smaller, and millions of babies have been aborted!
It isn't any secret that Social Security is in financial straits. You can't depend upon Social Security for your entire income needs. Social Security was only intended to supplement your retirement income. It was never intended to be your sole source of income.
Income From Savings
Hopefully you have saved and invested money in your employer's 401(K) plan or your personal IRAs. But is that enough?
According to Scottrade, when Baby Boomers (Born 1945-1966) were asked "How much do you currently have saved for retirement?" they found the following:
| Amount Saved For Retirement || Percentage Of Respondents |
| Less than $25,000 || 28% |
| $25,001 to $100,000 || 19% |
| $100,001 to $250,000 || 13% |
| $250,001 to $500,000 || 9% |
| $500,001 to $1,000,000 || 4% |
| $1,000,001 to $2,000,000 || 2% |
| $2,000,001 to $5,000,000 || 1% |
| More than $5,000,000 || - |
| Not Sure || 23% |
The chart shows that most Baby Boomers have not saved enough for their retirement. Over half have saved less than $250,000. Plug your savings amount into a retirement calculator and see how long you can withdraw $50,000 annually before your funds are depleted.
Retirement Income Streams
If you want a comfortable retirement, you need to develop multiple streams of retirement income.
Investing in credit worthy high-yielding corporate bonds can be a safe, profitable, and a steady stream of retirement income. "Unlike stocks, you'll always know exactly when and how much you'll be paid." says Mike Williams, CFA, editor of the S&A newsletter True Income.
The goal of True Income is to buy "Secured Investment Contracts" (corporate bonds) at a discount and then hold them several years until maturity. How well have they done? Their January 2011 issue reports a 23.3% gain even though they had to navigate the worst recession since the Great Depression. Outstanding!
As they say, past performance does not guarantee future results.
Porter Stansberry, founder of Stansberry & Associates Investment Research (www.stansberryresearch.com), believes "Secured Investment Contracts" bonds are safer than stocks! Yet most of us, choose stocks and their inherent risks.
If you would like to increase your retirement income, and be the first to get paid, investigate S&A True Income newsletter by S&A Investment Research. I love their newsletters!
To find out more about bond investing, read my article Retirement Investment Income.
Stock investing has been a favorite way for many Baby Boomers to save and invest for their retirement. However, stocks are risky as the stock market fall of 2008 demonstrated so vividly.
If you must invest in stocks, choose world dominating stocks that pay growing and dependable dividends. Dividends are critical for retirement income from stock investing. The best place to find advice on investing for income is Dan Ferris' The 12% Letter.
This newsletter seeks to help "subscribers collect a steady, reliable "paycheck" (in the form of dividend pay-outs and fund distributions and earn a safe 12% return every year."
Dan Ferris also writes the newsletter Extreme Value. This newsletter focuses on value investing, the art of finding safe and cheap stocks selling at a huge discount to their true value. These stocks are the safest to buy, and profitable.
Both of these newsletters are offered through Stansberry & Associates Investment Research (www.stansberryresearch.com).
Tax Lien Investing
Another way to increase your retirement income is to invest in tax lien certificates. As you know, real estate owners must pay property taxes. When the property taxes are not paid, the county will add penalties to the taxes.
Most counties in most states will sell these tax certificates at public auction. The counties prefer to have the tax revenues now instead of later. The interest charged on these certificates can be as high as 16%. Usually, the bidder will bid down the interest rate to win the tax certificate at auction.
You, as an investor, can bid on these certificates. If you win the bid, you pay the back taxes to the county. When the taxes are finally paid by the delinquent taxpayer, the county will collect the tax and penalties. Then they will mail you a check for the amount you invested plus the interest that you agreed to receive.
Interested? Read my article on tax lien investments.
Another way to create retirement income is to create an Internet business. The easiest way I know of to do this is to create a website about something you know and love. A hobby perhaps or some knowledge you gain over the years.
Once you have steady visitor traffic to your website, you can add Google Adsense ads. Every time a visitor clicks an ad, Google will pay you a percentage of the ad revenue. This is my favorite way to create passive income without any large investment.
I recommend that you build your website with SBI. They have an easy to use system that helps you rank in the search engines for free traffic.
You do not need to know any programming computer skills. They will teach you all the way with online videos and a helpful Action Guide. If you can type a letter and click a mouse, you can turn your passion into a steady stream of income that works 24/7.
Add in a few affiliate programs and you can increase your income by selling other people's products for a commission.
If you are interested in an online business read my article titled Online Income Opportunity That Works!
As you can see, there are many ways to increase your retirement income. If you have any additional proven ways to increase income, we would love to hear about it.
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