It might seem like a strange statement, but it paints a picture that most people recognize nowadays.
What does $1,000 of retirement income look like?
To most people, $1,000 doesn’t seem like a lot. In fact, in most places around the United States, it barely covers one month’s worth of rent.
However, as a supplementary income, $1,000 is pretty handy to have around.
So, can you imagine if you got at least $1,000 a month in retirement income?
Yeah, lots of us do.
The $1,000 supplementary monthly income
Lots of people would love to have $1,000 in extra funds a month—and, yes, that goes for the wealthy, too, even with Autopac insurance. But, one thing that separates the wealthy from the modestly living is that they know how to diversify.
Diversify their finances, that is.
Diversifying finances is probably one of the biggest and should be easiest ways of gaining extra income well into retirement. The problem is that not enough people end up doing it. They just don’t know how. But, it’s actually pretty easy to get started.
In the next section, we’re going to take a look at three different income streams for those looking to diversify their portfolio for retirement.
Income streams for retirement
Income stream describes any source of usually supplementary income that produces some type of monetary income. If you had a side business, to provide an example, that would be one of your income streams, beside your main source of income and expenses such as vehicle insurance.
Dividend paying stocks are a popular income stream for generating some sort of supplementary retirement income.
Dividends are paid on a regular basis, usually quarterly, from a company (with stocks) to their shareholders. The profits or reserves from the aforementioned stocks are what typically get paid out.
Those who invest in three fairly popular stocks will get paid periodically throughout the year, usually in a way that ensures a retiree will get paid throughout most of the year. If you’re interested in dividends, there are plenty of resources out there to get started.
These stocks are a hybrid of traditional stocks and bonds. They’re best known for their income generating ability, since they have long term growth and trading range prospects that are relatively ‘muted’ in comparison to other options.
Although they don’t pay out as much as dividends, people who invest in these stocks do get a fairly decent return for their efforts. Much like with dividend stocks, there’s plenty of information out there to tell you how to get started with preferred stocks.