Your Next Steps and Final Thoughts
Creating an extra $1,000 a month in passive income during retirement is an achievable and rewarding goal. It can transform your financial reality, providing flexibility, security, and the freedom to enjoy your retirement to the fullest. The key is to build a plan that is tailored to your specific financial situation, your timeline, and your comfort level with risk.
As you move forward, here are five simple steps to take:
First, start with the basics. Create your cash-flow map to understand exactly where you stand today. Know your fixed and variable expenses.
Second, check on your emergency fund. Before you invest a single dollar for new income, make sure you have a healthy cushion of safe, accessible cash for surprises.
Third, review your existing portfolio. Look at your current investments not just through the lens of growth, but through the lens of the potential income they could generate.
Fourth, explore one or two of the strategies we discussed today in greater detail. Perhaps you want to learn more about dividend ETFs or how a CD ladder works. Do your research using reliable, unbiased sources.
Fifth, consider getting a second opinion. Before making any irreversible decisions, like purchasing an annuity, it can be valuable to speak with a trusted financial professional who has a legal duty to act in your best interest.
Remember that your financial plan is not set in stone. It’s a living document. We recommend reviewing your income plan at least once a year, and any time you experience a major life event. By staying engaged and proactive, you can build a reliable stream of passive income that will support you for years to come.
Disclaimer: The information provided in this article is for educational purposes only and is not intended to be a substitute for personalized financial, legal, or tax advice. Financial rules, regulations, and interest rates are subject to change. You should consult with a qualified professional before making any financial decisions.
