Lately I’ve seen an ad on TV where people are carrying around a big orange number. The idea is that this number is the amount of money that person needs to save so he or she can retire comfortably. The ad generated a strange response in me - one of anger - and I wasn’t exactly sure why.
Then I came up with the reason. I was feeling depressed and anxious, not exactly mad. Which is probably why they created the ad campaign in the first place. Research has shown that the best kind of advertising is that which makes you feel desperate and stressed. Negative advertising. Needless to say, it worked for me. But when they did give their solution, it didn’t really work for me.
Their solution is to sign up with them and they’ll help you save and invest properly to end up at the “magic number”. That might work for someone just entering the workforce, or even someone in their thirties, but I’m 52 years old. I have very little savings, and in my opinion not a lot of hope to increase that to the one or two million dollars that most of those numbers in the ad represented, even if I hired the best financial mind in the world to help me make decisions.
What are people my age supposed to do? I’ve decided that I’m going to generate multiple streams of income coming into my bank account every month for the rest of my life. Furthermore, I think this is a great solution for most baby boomers. How do we really know what that number is, anyway, with the rising cost of gas and the decreasing value of real estate. These are uncertain times. So how do we generate those multiple streams? Here are a few ideas.
1. You can refinance your house with a reverse mortgage. If you have a bunch of equity in your primary residence, you can take out a loan and not have to make payments. You can then get a monthly payment, a lump sum, or just have it available to use if necessary.
2. Get a part-time job. If you have a pension and social security, maybe just a little extra will enable you to make ends meet. This might be accomplished by working part-time.
3. You can purchase a franchise. There are all kinds of businesses out there if you’re willing to put up the capital to get started. Some are very expensive, and some aren’t. Do some research, this might be a great option.
4. Start a traditional home business. Maybe there is something you’re good at and you can market that skill. It can be building something, making something, or even offering a service, such as bookkeeping. You can sell your product or service on Craig’s List or ebay.
5. You could start your own home-based internet business. Affiliate marketing is a hot topic right now, and you can make a some good residual income by setting up websites that promote other peoples products. All you have to do is send the customer to that merchant’s site, and you’ll earn a commission. Once you get the sites set up, they are self-sustaining and can generate income month after month.
6. A network marketing business. This is my top choice for the simple reason that it offers both leveraged incom and residual income. Leveraged income means that you sign up distributors underneath you, and you are paid a small part of any sales they generate for the company. Residual income is accomplished by setting up customers that continue to buy your companies products on a month-to-month basis, and you earn commission on every purchase they make.
There’s no time like the present to start thinking about your retirement. These are just a few ideas, now get out there and make it happen!