If you’re thinking about retirement, and you’re worried that your expected income may not be enough, here’s some good news: There are many possible sources of retirement income, and some of them may be surprises to you.
Here’s a look at some ways to generate income in your later years. See which ones make the most sense for you.
Image source: Getty Images.
1. Dividends
Dividend income is probably the least unexpected in this group, but the amount of income dividend stocks can generate is often underappreciated and potentially surprising. For example, if you retire with a stock portfolio valued at $500,000, and it has an overall dividend yield of 3%, you’re looking at around $15,000 in annual income — and that sum is likely to grow over time, as dividends from healthy companies tend to be increased every year or two.
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Here are some examples of well-regarded dividend payers — and their recent yields:
|
Stock |
Recent Dividend Yield |
|---|---|
|
Enbridge |
6.1% |
|
IBM |
5.3% |
|
Unilever |
4.6% |
|
3M |
4.2% |
|
AbbVie |
3.8% |
|
Sanofi |
3.8% |
|
Chevron |
3.3% |
|
Pfizer |
3.2% |
|
Coca-Cola |
3% |
Data source: Yahoo! Financial.
If you don’t already have some dividend-paying stocks in your portfolio, consider adding them.
2. Your house
Your house, perhaps unbeknownst to you, is a possible income generator — now and/or in retirement. For one thing, you might rent out space in it — or rent out the whole home — for short or long periods via services such as Airbnb. You might also take in a boarder for a few years, if you and your home can accommodate that.
Then there are reverse mortgages, which are not suitable for all retirees, …….