Working for years and saving or investing your money will probably be the best way to fund your retirement income. However, in today's climate of rising prices and inflation, that isn't always possible.
When you're not able to save as much as you would want, you can still fund your retirement. There are plenty of unconventional ways to make extra cash and invest enough to retire comfortably when the time comes.
9 Unconventional Ways to Fund Your Retirement Income
1. Side Hustling
One of the best investing strategies is to branch off and generate different income streams, and the best way to do this is to start a side hustle. Although starting a side business may sound like additional costs and liability, you can get it started.
Especially with the recent market trends, many new opportunities have surfaced that are easy to get into, such as flipping things for profit, running a blog, or any other e-commerce business. So if you want to start a side hustle, now is the time to get into it.
2. Exchange-Traded Funds
Amongst the investment options present, investing in long-term stocks and Exchange-Traded Funds (ETFs) can be considered one of the best. To get started with ETFs and stocks, you first need to secure an initial capital invested in broad market index funds or mutual funds.
Although the returns on such investments are relatively small daily, they will add up and potentially become significant.
But before you start investing in the stock market, note that there are significant risks of losing out on your capital if the stocks perform poorly. So while most developed stocks rarely show signs of significant loss, it’s always a possibility.
3. Crowdfunded Real Estate
Crowdfunded real estate is a relatively new investment opportunity. This type of investment involves pooling money from investors and investing that money to purchase a property.
Investors can then earn a return on their investment by renting out the property or selling it. Crowdfunded real estate is an attractive investment option because it is relatively low-risk and provides investors with the potential for a high return on investment.
Several websites offer crowdfunded real estate investments, and it's essential to do your research before choosing one. Make sure you read the terms and conditions carefully and be sure to ask any questions you have. It's also essential to understand the level of risk involved when you invest in crowdfunded real estate.
Here are some of the best real estate crowdfunding platforms:
- Fundrise – a US-based platform where you can open an account with an initial investment of $10.
- Groundfloor – a US-based platform where you can start investing for as low as $10.
4. Peer-To-Peer Lending (P2P)
Peer-to-Peer lending is a way to lend people money without going through a bank. You lend money to individuals with peer-to-peer lending, and you will receive interest as your profit.
For example, if you have an extra €1,000 and invest it in the platform, lend it and get an additional interest percentage when they pay the money you lent back.
There are various platforms where you can lend your money. Ensure that you do your research and go for the platforms you are comfortable using. Of course, P2P lending would always have risks involved, so be aware of that.
5. Micro-Investing Apps
If you're looking for a way to invest that will make money daily, you may want to consider micro-investing apps. Micro-investing apps allow you to invest small amounts of money into a diversified portfolio of investments. It can be a great way to start investing, and many of these apps offer low minimum investment requirements.
Some of the most popular micro-investing apps include:
- M1 Finance – is a stock and ETF brokerage that helps you invest in stocks for as low as $100. With no trading or brokerage fees.
- Webull – an online broker that has no minimum requirement and no trading fees.
- Acorns – an investment platform that is suitable for new investors, where you can round up your purchases to invest money without even noticing it.
These apps allow you to invest in various assets, including stocks, bonds, and ETFs. They also offer a variety of age-appropriate portfolios to choose from.
Real Estate Investment Trusts, or REITs, are a type of investment that allows everyday people to invest in real estate without going out and purchasing a property. Instead, REITs are a way to pool money together from different investors to buy a property or series of properties.
When you invest in a REIT, you become a part of the ownership of the property, and you will receive a share of the income generated by the property. REITs can be a great way to make money daily, as they typically provide dividends on a monthly or quarterly basis.
7. Dividend Investing
Dividend investing is a type of investment where an investor buys stocks or shares in a company that pays out a dividend. A dividend is a payment made by a company to its shareholders, typically as a percentage of their shareholding.
There are several benefits of dividend investing:
- Dividends provide regular income, which can be helpful during retirement.
- Dividend payments typically increase over time, meaning that investors who reinvest their dividends can see their investment grow faster than those who don't.
- Dividend investing is a relatively low-risk investment method, making it a suitable option for those who are risk-averse.
8. Acquire A Business
If you feel like starting your own business can be too much of a hassle, you can invest in acquiring an already established business. It will allow you to cut down on the initial high-risk investments and replace them with a one-time investment with a much lower risk.
Additionally, acquiring a business will allow you to generate an income much quicker than starting your own business. You can involve multiple agents in the company's brokerage, ensure that you are getting the most worth for your money, and have valued the company appropriately.
9. Invest In An IRA
An IRA, or individual retirement account, is a tax-advantaged investment account that allows you to save for retirement. There are several different IRAs, each with its benefits and rules.
One of the best things about IRAs is that they offer tax breaks. Contributions to an IRA are tax-deductible, and earnings on the investments in the account are tax-deferred. You don't have to pay taxes on the money you earn from your IRA investments until you withdraw it from the account in retirement.
Related articles from the Wealth of Geeks Network:
- 10 Best Paying Jobs In Real Estate Investment Trusts
- 31 Odd Jobs Near Me + Apps And Sites That Pay Well
- 14 Data Collection Apps to Make Money
Featured Image Credit: Pexels
Marjolein is the founder of Radical FIRE. She has a finance and economics background with a master’s in Finance. Radical FIRE is a personal finance blog that helps you live your dream life through making more money and investing. We want you to reach your financial goals and have fun while doing it!