- Dividends and interest. When interest rates were 5%, CDs and bonds were a good source of stable income. Now that interest rates are low, dividend paying stocks can also provide a stable source of income, although with more principal risk.
- Rental property. This option can offer a good steady stream of income. However, it is usually effort and resource intensive. Either the work (rental, repair, tax returns) needs to be done by the owner or a management company needs to be hire to do the work. Vacancies can significantly increase costs or reduce income.
- Annuity. Insurance companies can provide a stable source of income in return for a lump sum payment or period contributions.
- Social Security. This government program provide month payments to beneficiaries. Now that I'm 55, Social Security benefits are likely not going to change for me before I reach 62 which is the first year I can file for benefits.
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This is not financial or retirement advice. Please consult a professional advisor.
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