In the US, the full retirement age for Social Security benefits has been adjusted incrementally based on a person’s year of birth, now reaching 67 for those born in 1960 or later.
But many people continue to function well beyond this age.
According to data from the US Census Bureau, 650,000 Americans over 80 were working last year, an 18 percent increase from a decade earlier. Of those 650,000 Americans, 50% worked full time.
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Some people choose because they want to work in their golden years. For example, 93-year-old Warren Buffett continues to lead Berkshire Hathaway Inc. as CEO, and 80-year-old Joe Biden is the US president.
For others, the decision to continue working stems from financial necessity or a lack of adequate retirement savings. With the rising cost of living, some people have no choice but to stay in the workforce longer.
After all, Buffett once said, “If you don’t know how to make money while you sleep, you’ll work until you die.”
With that in mind, here are two passive income strategies that can strengthen your financial security and pave the way for a comfortable retirement.
It will be paid.
The timeless adage “buy low, buy high” has led countless people to participate in the stock market. But you don’t need to actively trade stocks to make money. You can also collect dividends.
Dividends are payments made by corporations to shareholders. They are a way for companies to distribute a portion of their profits to those involved in the business.
By collecting dividends from high-quality companies, investors can sidestep the worries and uncertainties associated with trying to time the market and benefit from a steady stream of income.
Business legend John D. Rockefeller once said, “You know the only thing that makes me happy? It’s to see my dividends come in.”
Best part? Some companies manage to pay high profits over time. For example, retail behemoth Walmart Inc. has increased its cash dividend every year since it declared its first annual dividend in March 1974. Global beverage titan Coca-Cola posted its 61st consecutive annual dividend increase in February, and consumer goods major Procter & Gamble Co. paid its 67th annual dividend to shareholders.
All three are members of the S&P 500 Dividend Aristocrats — the elite group of S&P 500 companies that have raised their dividends for at least 25 consecutive years. Past performance is no guarantee of future results, but these companies have demonstrated their ability to pay dividends through thick and thin and can be a starting point for further research.
Real estate is often thought of as a major source of income, but the “flexible” part can be deceiving.
If you want to collect rental income the traditional way, you’ll have to put together a large down payment, take out a loan, and buy a property. Given today’s high home prices and high interest rates, this is no easy task.
You’ll also need to screen potential tenants, draft lease agreements, and make sure rent is paid on time. Chasing late payments and dealing with treacherous tenants is never fun.
At the same time, landlords are responsible for the maintenance and upkeep of their property, which requires frequent maintenance and repairs.
Good news? You don’t have to be a landlord to invest in real estate. For example, many real estate investment trusts (REITs) trade on the stock market. REITs can be thought of as giant landlords – they own income-producing real estate and collect rent from tenants.
REITs are required by law to distribute at least 90% of their taxable income to shareholders as dividends. This requirement makes them attractive to the investors they need. Earn passive income.
Crowdfunding platforms provide another opportunity for people to invest in various assets. They have lower minimum investment requirements compared to traditional real estate investments.
For example, at Amazon.com Inc. A platform supported by founder Jeff Bezos now allows people Invest in rental properties for as little as $100 When you stay completely hands.
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