We all know that when you retire, the government will take care of you to a small extent and you’ll also receive a pension from the company that you worked for since you were 18 years old. You’ll have this retirement income coming in and you’ll be able to enjoy your life. There’s just one thing that we’re forgetting about.
What about entrepreneurs? What about those that never worked at a company for more than five years? What about those that are on their own? Entrepreneurs have the potential to makes lots of money in their lifetime. They also need to remember that they need to take care of themselves if they want to earn some money when they settle down and close down shop. This is an article for the self-employed that want some sort of retirement income.
What are some retirement income options for those of you that are self-employed?
You can purchase a few rental properties that will hopefully generate you income in your golden years. The sooner that you purchase the rental properties the sooner that the mortgage will be paid off. This means that you can have a pretty decent monthly profit depending on how many properties that you own.
If you’re self-employed then I highly recommend that you look into purchasing a rental property or two in your earlier days. You might not become a millionaire, but it will be a learning experience for you. I’ve already started doing this. I hope to have five rental properties when I do eventually retire.
Dividend paying stocks.
If you’ve been reading this site you know that we promote dividends heavily. There are many reasons why companies pay dividends. There also many reasons why we recommend that investors put their money into stocks that pay dividends. To summarize dividend paying stocks, you’re buying shares in companies that believe in profit sharing. Every quarter or determined time frame, you’ll receive money from this company based on how many shares you hold. You can re-invest the profit or you can treat this as retirement income.
Since you’re reading this we will assume that you know how the stock market works. As a self-employed retiree you should really speak with your financial planner about putting some money into dividend paying stocks.
Your savings account.
While your savings account might not earn you a fortune on interest, you can accumulate some serious money in your savings account over the years. The good news is that your savings account is risk-free and you won’t ever have to worry about the money that you keep stored in this account. When you do retire you can treat your savings as some sort of a weekly pay check by taking out a set amount when you need money or something pops up.
I put a few dollars into Canada Savings Bonds every pay check. I do this because it helps to diversify my income. I’m also a huge proponent of the fact that I don’t even notice this money going away. Of course, if you’re self-employed completely you won’t have a pay check from one company. The good news is that you can still buy bonds on your own. You can setup an arrangement where a little bit of money is taken from your checking account every few weeks and put towards buying bonds. This isn’t the best investment plan, but it’s a good way to have some extra retirement income.
Those are the best retirement income options that I could think of for entrepreneurs. The best part is that you can make your own money and take care of yourself.