Lately I've seen an ad on TV where people are carrying around a big orange number. The idea is that this number is the amount of money that person needs to save so he or she can retire comfortably. The ad generated a strange response in me - one of anger - and I wasn't exactly sure why.
Then I figured it out. It wasn't exactly anger that I was feeling, it was more of a feeling of stress or despair. And I guess that's probably the whole idea. My wife told me that that's how that's the most effective type of advertising: they make you feel desperate. Well it sure worked with me. However, I don't think the solution they offered gave me any hope, personally.
What this company wants is for you to sign up with them as financial advisors, and they'll help you reach your number. While this might be a solution for some people, especially younger ones, I just don't feel it applies to someone like me that's in their fifties. I have put a little money away, but I don't feel there is any way for me to save more than a million dollars by the time I'm 65! That's the minimum amount of most of the numbers under the people's arms.
So what's the answer? For me it's going to be having a stream (or multiple streams) of income coming in until I die. I believe that's a viable solution for most baby boomers, especially in these uncertain and volatile times. But how do we accomplish that? Here's a list of 6 possible solutions.
1. You can refinance your house with a reverse mortgage. If you have a bunch of equity in your primary residence, you can take out a loan and not have to make payments. You can then get a monthly payment, a lump sum, or just have it available to use if necessary.
2. How about a part-time job? If you don't need a lot of extra money because you've got some savings, a pension, and/or social security, maybe a part-time job will be enough to make retirement work for you.
3. Franchises. There are lots of different franchise opportunities available if you don't mind putting up some money up front. Some of them aren't that expensive, and they encompass a huge range of businesses. A restaurant, a cleaning service, an auto repair place. If you've got some money saved up, this might work for you.
4. A traditional home-based business. Do you have special skills, talent, or training? You could market yourself or products you create on Ebay or Craig's List. Maybe you know how to build furniture, or do taxes. The possibilities are endless.
5. You could start your own home-based internet business. Affiliate marketing is a hot topic right now, and you can make a some good residual income by setting up websites that promote other peoples products. All you have to do is send the customer to that merchant's site, and you'll earn a commission. Once you get the sites set up, they are self-sustaining and can generate income month after month.
6. You could start a network marketing business.I really like this idea because it offers two types of income - residual and leveraged. By residual income I mean income that comes in every month, whether you work or not. Most network marketing companies have consummable products that the customer buys every month. Leveraged income comes when you sign up a distributor underneath you. Then every time that person makes a sale, you get a piece of their pie.
These are a few ideas. Everyone is different: you'll have to discover what works for you. But do something, it's never too late!
About the Author:
Matt is an internet marketing trainer, helping people learn how to build their online business. His focus is on attraction marketing. You can view more information at Baby Boomer Retirement Plan.
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