Can I make income before retirement?

Question

I'm in my mid 50's and am trying to find a way to supplement retirement.  Did I start too late to be able to make an income to help out?

Scott Passman · Answer

Establishing steady income through rentals would actually be a great compliment to a traditional 401k based retirement because as you draw down your 401k/IRA funds over time, your annual cash flow from rentals will likely increase over time to offset concerns of a shrinking 401k balance.  This can be a great way to mitigate risk and stress of stock market volatility knowing you have steady income outside the market that should not only be minimally impact by temporary market recessions/corrections but that should see steady increases throughout your retirement.  As @Will Fraser said, there are multiple factors involved in reaping financial benefits from real estate and since you are in your 50's you should hopefully have a couple decades to receive those benefits.

Will Fraser · Answer

Hi @Gary R Uren, You absolutely did not start too late!  The four primary levers (or beneficial aspects) of real estate investing are:

• Cashflow
• Tax benefits
• Appreciation 
• Equity

You could start 2 decades from now and still benefit greatly from REI (primarily through Cashflow and Tax Benefits), but your potentially extended horizon means you will participate in each of these areas.  As you get closer to retirement you'll likely value the Cashflow and Tax Benefits more than Equity and Appreciation, but they'll be nice cherries on top :)

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Will Fraser · Answer

Gary, Uren the right place for some empowering motivation to dig deep in real estate investing!  Thanks for being part of the community!

Stephen J Davis · Answer

Not at all. I consult people in their 70's that are doing this. Get educated and get going. You can do this at any age. Remember there is no expiration date on your foot. You could live another 30 or 40 healthy years.

Zachary Ray · Answer

Rental property is the way to go. It is not passive by any means but can be a great stream if set up properly.

Gary R Uren · Answer

Thank you everyone,  very empowering.

Can I make income before retirement?

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