5 Game-Changing Passive Income Streams for Boomer Retirees

If you belong to the Baby Boomer generation planning to retire within the coming half-decade This is the perfect opportunity to boost both your earnings and savings. With catch-up contributions, you have the chance to add an extra $1,000 to your IRA or as much as $6,500 more to your 401(k). Therefore, now is an ideal moment to increase your income and reinforce your retirement funds.

Since you're approaching retirement age as part of the baby boomer generation, you might not be eager to take on another full-time position for additional earnings. This makes passive income approaches particularly appealing. Below are some top choices .

Check Out: I Earned $10,000 With One of Dave Ramsey’s Top Passive Income Strategies

Read Next: How Middle-Class Workers Are Secretly Turning Into Millionaires—and How You Can Do It as Well

Generating extra money can easily be manageable. You can begin this week.

Rental Real Estate

When it comes to generating passive income for baby boomers, rental property investment likely stands at the pinnacle.

This venture isn’t entirely “ passive” since you must purchase and upkeep a property, locate tenants, and handle documentation. However, after setting everything up, managing a rental property becomes quite low-maintenance. Each month, you will get a payment which you could utilize for covering your mortgage, settling expenses, or putting into other investments.

Find Out: Top 10 Locations for Purchasing a Short-Term Rental Property to Generate Passive Income in 2025

Dividend Stocks

One approach to create genuine passive income is purchasing dividend stocks. The rate of return from these investments can range from 3%, 4%, or even surpassing 5%, not including potential increases in stock value through capital appreciation.

If you opt for the so-called "Dividend Aristocrats," which refers to firms that have consistently both paid out and increased their dividends over a span of at least 25 successive years, you will access an earnings source that is likely to increase every year as well.

Generally speaking, the dividends you receive from stocks are taxed at a special rate of just 20%, 15% or even 0%, depending on your income and tax-filing status. This makes dividend stocks more tax-efficient than bonds, with the added kicker of potential capital appreciation.

E-Books/Online Courses

A significant factor contributing to higher wages among many older employees is their extensive experience. By the time you near retirement, chances are high that you've become highly skilled in at least one area, possibly several. Such expertise holds considerable value, and individuals often find it worthwhile to compensate for this knowledge.

If you can successfully convey your knowledge through an e-book or online course, you can generate passive income for the rest of your life. There will be some upfront work involved as you create your product, but once it’s finalized, it can remain online and generate passive revenue with almost no more work involved — although updating your work periodically and marketing it online can help boost sales.

Make Money With Your Car

Your car may be a depreciating asset, but that doesn’t mean it can’t generate passive income for you.

If you don’t use your car very much — or if you have an extra one — you can rent it out on a platform like Turo. For an out-of-the-box idea, consider using your car to advertise. Companies like Wrapify and Carvertise will match your location and driving habits with a business that wants to slap an ad onto your car in exchange for a few hundred dollars per month. If you don’t mind being a driving billboard, this can be an easy way to passively earn income.

The Bottom Line

If you’re just looking to earn a few bucks once in a while, more common strategies like selling your clutter online or at a garage sale can do the trick. But for ongoing passive income, you’ll need to put a more consistent strategy into place.

The above ideas can help boost your monthly income by hundreds or even thousands of dollars a month. Over the five-year period before you retire, this can make a big difference, translating into tens of thousands of additional dollars for your retirement years.

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This article originally appeared on Romero.my.id : 4 Passive Income Streams for Boomers Retiring in the Next 5 Years

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