In its Winter 2014 magazine, investment strategists at T.Rowe Price shared this startling statistic:
“On average, 10,000 baby boomers turn 65 every day and many of them are envisioning a long and active retirement.
They’re challenging the traditional picture of post-career life – and they’ll need a sound financial strategy in order to achieve their goals,” says Judith Ward, CFP, a senior financial planner with T. Rowe Price.
Does that surprise you? Shock you? Worry you?
Or are you one of the lucky few who have your strategy down to a fine science?
I have to admit, even though I have always known it was coming- I mean every day we do get older so it’s inevitable isn’t it?- I don’t think I was really prepared to say I am turning 60 in the new year. That puts me at the tail of the boomer cohort, so many of my peers are already into retirement and many have questions.
I’m not ready to “retire”… What else can I put my time into?
My health is forcing me to take it easy… Is there any way to continue to make extra money?
I want to retire early to do some traveling while I can… but, without that income, how will I get by?
These are legitimate questions for which there are real answers. None are easy answers however.
The strategies fall into one of two categories- three if you count on inheritance. I know I’m not going to have a windfall land in my lap so let’s look at the other two ways to cope.
The first relies on time. Work hard and save, over time. If you’re late to the strategy of saving, then you can work things out by paring down your lifestyle. Pay off what you can and don’t incur new debt. This is a harsh discipline but it’s the one option that works if you don’t have income coming in, which brings us to strategy two.
The second strategy is to parlay skills and interests into a new “income stream” as business people are fond of saying these days. In the old days of my father, there was no stream, it was more of a trickle.
But today we do have opportunities to create a stream of income that comes in fairly regularly without requiring us to go to the office or shop to create it.
Some of the options are passive income such as affiliate marketing, internet sales, and other online marketing. (I’m assuming that’s an option since you’re already online reading this, right?)
The other side of this income producing strategy is active income that comes from your interests and skills. A teacher can tutor students at home; an accountant can consult with small businesses for a fee; a baker can sell homemade breads at the local farmer’s market.
Each of these are viable options to shore up your bank account with a regular income stream. The more you work, the greater the stream of revenue.
Do some brainstorming with your family and friends to see what they feel you are most spectacular at and see how that could generate income.
If you don’t have such particular talents, or don’t want to go through certifications and red tape needed to provide some services or products, take a look at the passive income generating ideas.
One great advantage of passive strategies is that you aren’t bound to a specific place or time- wherever you can take your laptop and work is a place you can produce results.
I hope these thoughts have given you something to consider, something to help you make a good decision that will benefit the rest of your life.
When you’re ready to talk, let me know. Leave a comment in the space below. Let’s explore your options, concerns or ideas.
All the best to you,