Skip to main content

Passive Income Ideas for Retirement (Investing for Retirement and Saving Without 401k)

  • Author:
  • Updated date:

Best Passive Income Ideas for Retirement

How to earn passive income by investing for retirement and what are you doing about your retirement? Even if this milestone is more than a decade away, it might not be a bad idea to start planning now.

To that end, why not consider setting up a passive income stream that will ensure revenue continues to come in, even after you retire.

If you have additional measures already set up, you can even consider passive income as a supplemental measure. Of all the options for passive income that are available to you, investing remains quite possibly the most popular choice. Within this larger category, there are several things you will want to keep in mind.


Building for your retirement is a lot like creating a safety net. Investments represent a great way to create a revenue stream that can continue to bring in money, even if you aren’t doing anything significant to keep earning.

Passive income generally involves creating a foundation of work that is so strong, that foundation is capable of functioning on its own. There might be some maintenance measures with your passive investment opportunity, but in the end, you’re likely to be putting in a lot less work than you would under other circumstances.

Keeping in mind that passive income does require a certain measure of work, you can begin to choose a passive income idea that’s right for you.

When it comes to passive income investments, there is perhaps no option more popular than real estate investing. Within this option alone, you’re talking about possibilities that can keep you busy for the rest of your life.

As a passive income opportunity, you’re going to find that real estate investment can prove to be highly lucrative. At the same time, it can very quickly become a black hole that devours time and money at an astronomical rate.

Other times, it can simply become something in which you break even so often, you begin to wonder if it’s really worth it. By no means are we trying to discourage you from real estate investing. It’s just important to understand the importance of researching your options, as well as the work that might be involved.

You also want to be aware of the demand on resources. For example, let’s say you buy a two-story house, and you rent it out as two apartments.

You can opt to manage everything on your own, which can become extremely time-consuming, or you can opt to hire a property management company.

The second option will certainly create an income stream that is decidedly passive, but you will want to keep in mind that you’re going to need to pay the property managers.

In the end, owning and renting out residential homes or apartments is an amazing way to generate a powerhouse passive income stream. Simply keep in mind how much work is going to be involved, particularly at the beginning.

Even so, with hard work and good research, you can create a passive income stream that can provide you with generous financial rewards for years, even decades to come. You may also want to look into real estate investment trusts.

Create Your Passive Investment Stream Through Investing

Bonds remain a passive investment opportunity that’s worth exploring. However, a lot of people seem to overlook the potential of bands. In fact, even dedicated investors sometimes fail to remember how bonds are capable of functioning as reliable, even strong sources for passive income.

A bond represents the ownership of a loan that is taken out by a company or a government. This is one of the strongest examples of passive income you are ever going to come across. Whether you don’t plan to invest in stocks, or even if you are currently investing in stocks, it’s worth looking more closely into the world of investing in bonds.

Buying bonds of differing maturities is a great way to have both short and long-term payoffs in your corner. There are additional possibilities for passive income investments that you are free to explore. We’re talking about investing in equities, as well as looking into the world of P2P lending.

Both of these options are investments of a kind. With P2P lending, things can get very complex very quickly. However, if you deal in sound investments, and you have a mind for organization, you can potentially do very well with P2P lending.

Scroll to Continue

Earn Passive Income From An Online Based Home Business

A popular way to earn passive income is to start an Internet based home business. There are lots of great options available.

The costs are low to get started and you can earn a second income stream just by working a few hours per week in your spare time. Best of all, there are basically no risks at all.

Many people have realized that their pension is not enough, so they must find a way to earn more money to live comfortably.

Starting your own Internet based home business is a fantastic way to invest money for retirement.

In the end, you’re going to want to go in with your eyes wide open. Decide for yourself what you really need to have for a comfortable, exciting retirement.

  • How much are you willing to work after retirement?
  • What kind of resources do you currently have for the investment that appeals to you the most?

In answering these questions, things are likely going to go much more smoothly for you.

How To Save For Retirement Without 401k

Thinking about how to start saving for retirement but you have no 401k? There is a simple answer, the best time to start is now. Sure there are quite a number of retirement accounts that you can open but the truth is that you don’t have to use any of those for your retirement funds if you don’t want to.

You can instead open some sort of high yield long term account where you will resolve to only use the funds for retirement.

But with that said you need to calculate how much you will need to have saved up by the time you reach retirement to be able to take care of yourself for that period of life for which you will have no income.

So the real question is not so much how to start saving for retirement but instead how much should you be saving.

To help you determine how to start saving for retirement and much you need to save monthly, you must know how long you will stay in that category. For the average American the time they will spend in retirement is approximately 20 years.

This means that at the beginning of your retirement you should have saved up 20 years worth of income. Of course there will be inflation and other unforeseen things that affect the value or worth of money but having 20 years of savings is a safe place to be.

Passive income ideas for retirement - Have a retirement plan!

Passive income ideas for retirement - Have a retirement plan!

11 Helpful Tips For How To Start Saving For Retirement Without 401k

So you now you know that but you still want to know how to start saving for retirement? Here are a couple simple steps that can help you along the way.

Tip Number # 1:

Once you start saving you must stick to the goal that you are saving towards. You can always start small then increase the amount as you go but you should always have an end goal in mind.

Tip Number # 2:

Determine your needs for retirement. If you are a lower earner it is estimated that you will need approximately 70% of your earnings for retirement and for higher earners they will need approximately 90%.

Tip Number # 3:

If you are employed contribute to the retirement saving plan of your employer. Many people have a choice in this matter and choose not to contribute; if you want to ensure that your retirement will be financially secure you should contribute. That is one of the best and easiest ways you can think of how to start saving for retirement.

Tip Number # 4:

Educate yourself on the pension plan that is offered by your employer.

Tip Number # 5:

Think about investing even if only on a basic level. Ask questions from professionals and leaders in the field. If you know retirees who are financially stable ask them what they did to make it so.

Tip Number # 6:

Resolve never to use the money that you are saving for retirement. There are a number of reasons you shouldn’t do this. You can end up paying early penalty fees as well as you can lose your ability to gain tax benefits etc.

Tip Number # 7:

If you are working with an employer that doesn’t already have a retirement plan you can urge them to start one.

Tip Number # 8:

Make regular deposits to an IRA or individual retirement account. These have an upper limit of $5000 for the year for persons who are under 50 and provide owners with a number of benefits. There are different types to choose form and different benefits for each. (NOTE: This information is necessarily not up to date. Please check the official IRA website.)

Tip Number # 9:

Be in the know about the benefits you will get form social security. These are usually around 40% of that which you earned before you retire.

Tip Number # 10:

Never be afraid to ask questions as this is the only true way to know that you are on the right path for how to start saving for your retirement. There are many experts out there that are able and willing to give you the help and advice you need.

Tip Number # 11:

Create a supplemental income stream while you are still working a day job. There are many legitimate online home business opportunities available. You need to invest a small amount of money to build the business, but in a relatively short time it can provide you with a nice supplemental income that will help with the bills.

How Much Do I Need To Save For Retirement?

Knowing how much to save for retirement is very important. If you're just starting out your career or are thinking about retiring soon, it's always important to plan ahead. There would be nothing worse than finding out you don't have enough to retire when it's impossible for you to work anymore.

If you'd like to find out how much to save for retirement then you will want to go over what this article is about to say so you can be sure that you can retire and live comfortably after a hard life of work.

The Basics

If you're going to retire at about age 65, you're going to want to consider how much money you're going to need to live comfortably every year thereafter.

Generally you'll need about 80% of your current income if that income is keeping you afloat and all of your bills paid. Of course, this is different in anyone's situation but 80% of what you're making is always a good idea.

Since you never know what could happen, an accident or a job loss, it's important to keep your retirement funds protected. Create separate emergency accounts and try your best not to toy with your retirement finances until they're needed.

You should also create a budget within your retirement funds for things like doctor's visits or vacations. This can run your total up, so consider working an extra year or two if you're thinking about doing a lot of extra activities.

Adjust Your Savings

Because job situations and things like income and house prices can change, you have to adjust your savings. If you're not doing this regularly you could be putting back too much or two little. Know how much to save for retirement at all times by adjusting your finances at least every year.

Even if you saved too much that year, don't try taking anything out of your retirement to make it even, consider it a bonus and adjust for a little lower next year. By doing things like this you will be able to have a little extra breathing room.

However, if you find that you just can't make enough to fund your retirement the way you'd like, consider working for a few more years, or putting more money towards it.

If neither of these seem plausible to you, you may just have to bite the bullet and take your retirement expenses down by cutting certain things out of it. Knowing how much to save for retirement can save you a lot of time and frustration!

Special Retirement Laws In Certain Countries

There are certain countries, such as in South America that has special retirement laws that underscore the importance of saving for retirement.

For example in Brazil you pay a certain amount of money to the government for 35 years (minimum) and you will be granted a fixed wage when you retire.

In North America, such as in Canada you will need to have this savings account and always put some money on it, that way you will have guaranteed money when you retire.

You might be thinking it is hard to save some money every month, however even if you only spare 50 dollars a month it will be helpful. For example you can start saving only 50 dollars a month and as time goes by you can add some more to it, such as 100 or 150 dollars per month.

Some others prefer to do the 10% method, which consists of saving 10% of the total salary every month. Regardless of what method you chose, always make sure you know the importance of saving for retirement.

Have your savings account ready, because you never know when you will have to retire. It is not hard to save money and be sure that every single penny you save now will be very good in the future. How to start saving for retirement is simple and easy when you have a steady day job and the right information.


The Importance Of Saving Money For Retirement

It is very important to save money every month when you work, you will need it when you retire. The importance of saving for retirement is something that every single person in the world needs to consider; you will not be able to work on a daily basis forever, because of age and also because every single person has the right to relax at the end of their life.

Saving money for retirement is very important and has to be done since a young age. For example you can save some money every single month, even if it is just a little bit. In the future this money will add up and will be able to help you when you retire.

When you think about how to start saving for retirement, one of the easiest ways to save money is little-by-little monthly. There are lots of other expenses you need to pay monthly as well.

There are special accounts in some countries that help stress the importance of saving for retirement, designed specifically to help your retirement called IRA account. These accounts are made for you to put a specific amount of money in yearly that later on can be released upon retirement.

If you never save money for your retirement you will face the problem of not having any source of income, a fact that will only bring you problems. In order for you not to face this problem you will need to save some money every month, which is no hard task.

One of the easiest and quickest ways to save money for retirement is by having your own home based Internet business. All you need is a professional money-making website and the right information for marketing your products and services online.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2022 Tom

Related Articles