Six ways for Baby Boomers to Retire

Posted on January 22, 2009 @ 2:28 am
by Matt Hellstrom

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. A reverse mortgage on your residence. If your house is paid off or mostly paid off, you can borrow against the equity in order to get monthly payments, get a lump sum, or just have the money available as a line of credit.

2. You could get a job. Maybe all you’ll need is a little extra to supplement your pension, savings, and social security. A part-time job might fit the bill to help you stay afloat.

3. A franchise might be an option. There are many different business plans available for those that have a little money saved up. These businesses range from restaurants to auto-repair facilities, and there is also a huge variety in start-up costs, too. This might be something you want to look in to.

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. Look into a home-based online business. There is a lot of money to be made doing affiliate marketing, where you promote other peoples products and earn commissions based on sales that are made because of your recommendation. This is pretty cool, because it can be a residual type of income, where the money keeps coming in month after month, which leads to time freedom.

6. You could start a network marketing business.I really like this idea because it offers two types of income – residual and leveraged. By residual income I mean income that comes in every month, whether you work or not. Most network marketing companies have consummable products that the customer buys every month. Leveraged income comes when you sign up a distributor underneath you. Then every time that person makes a sale, you get a piece of their pie.

These are a few ideas. Everyone is different: you’ll have to discover what works for you. But do something, it’s never too late!

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