7 Tips for Padding Your Retirement Savings
Many people plan for retirement by putting money into a money market account or contributing to a 401(k) with each paycheck. This is a great way to plan financially for retirement, but it’s never a bad idea to pad those savings with some extra funds. Keep reading for seven ways that you can add some extra money to your savings.
Convert Your Basement to an Apartment
Basements are often extra space in your home that doesn’t necessarily need to be used. If you can empty out your basement, you’ve got a space that’s ready to be converted into an apartment. Make sure that you provide a separate entrance, so your tenants aren’t bothering you as they go in and out.
Learn a Hobby That Pays
With more downtime at your disposal, retirement is a great time to learn a new hobby. Whether you’ve always wanted to learn how to paint, knit, cross-stitch, or garden, you have time to learn how. Once you feel like you’ve established your own style and are confident enough in your abilities, you can sell your work online or at a local farmer’s market.
Sites like Etsy and Jane make it easy to sell handmade products online without the expense and knowledge it takes to maintain your own shop. They will, however, take a small portion of your profits.
Get a Part-Time Job
Even if you’re comfortable with the size of your retirement fund, a part-time job can be a great way to fund hobbies or get some extra cash for yearly vacations. Grocery stores and small clothing stores are usually hiring cashiers or other part-time positions that don’t require you to work extra hours beyond your regular schedule. This means that you can leave work at work and spend your free time relaxing.
Invest in Dividend Stocks
Not all stocks pay out dividends, but well-established companies that are publicly traded will often pay out small dividends each year based on the number of shares you own. For example, if you own 50 shares in a company that pays out $5 annually per share, you will get $250 each year. While $250 isn’t much annually, you can use this small chunk of change to help fund birthday gifts for grandkids or treat yourself to a small shopping spree.
Get a Reverse Mortgage
Even if you’ve only been living in your home for 15 years or so, there’s a chance that you own a solid amount of equity in your home. If this is the case, a reverse mortgage could be a good option for you. You can first become eligible for a reverse mortgage at age 62 and have a minimum of at least 40% equity in your home. This means you can probably get a couple hundred thousand dollars to drop into your savings to supplement the savings that you’ve already built.
When it comes to getting a reverse mortgage, it’s important that you take the time to shop around for a lender to find the best interest rate for you. AAG in particular has established itself as the top mortgage lender in the nation by loan volume. You can learn more by reading reverse mortgage reviews.
Work as a Freelancer
Whether you worked professionally somewhere in the creative space or just do something as a hobby, you can bring in extra money each month as a freelancer. Companies are always looking for freelance copywriters and graphic designers so they don’t have to keep someone on staff. You can work a few hours each week and make somewhere between $50 to $200.
If you’re not sure where to start, you can sign up for free on freelance marketplaces like Upwork and Fiverr. You will have to bid for jobs, but if you’re not overly concerned with the income, you’re free to work when you want.
Tutor or Teach
You have years of professional experience and knowledge to offer. Why not capitalize on that by teaching others? You can tutor students in high school, college, or even those preparing for certification exams for a fee. As a freelance tutor, you’re free to set your schedule with your students and time off is easy as you can take a break whenever you decide you don’t want to take on any new students.
If you’ve played a musical instrument for a number of years, you can provide lessons to those who are looking to learn. Kids from pre-school through high school are always looking for someone to help them learn piano, guitar, or improve on their band instruments like trumpet or clarinet. You can set a flexible schedule and take on as many students as you’d like.