Looking for ways to become financially free before retirement? You can start receiving another stream of income every month just by investing. When done correctly, strategic investing can help top up your income, and in some cases, even allow you to retire early. This article will show you exactly how investing can become your secondary income.
Diversify Your Portfolio
When investing, you should have two goals – to make money and to position yourself so you never lose it. The best way to achieve this is by diversifying your investments. An example of this would be to invest in a couple of different high-yielding stocks and mutual funds that will earn consistent returns and then strategically add GICs and bonds to your portfolio to offset the risk. Then depending on the current market condition, all you need to do is adjust your asset allocation to maximize your expected returns in bull markets and protect your underside in bear markets.
Invest In Real Estate
You don’t have to own physical real estate to invest in property. A Real Estate Investment Trust (REIT) will allow you to invest in a company that owns, operates and finances income producing properties. This will give you exposure in their stock portfolio and can provide you with some hefty returns that you can use as your secondary income. To hedge against any upcoming recessions, be sure to look at REITs that won’t eat into your profits if the market dips, such as healthcare REITS that will always be in steady demand.
If you want consistent returns, you need to take advantage of long-term increases in value. How? By investing in stocks with cash dividends. These types of stock allow you to receive a portion of the corporate profit each quarter or year, which you can then take out to use as secondary income or re-invest it to take advantage of compounding.
Invest In Annuities
Those looking for a long-term income plan might want to consider setting up an annuity. With a fixed annuity, you can make a lump sum payment to an insurance company and then receive monthly payments for the rest of your life regardless of the amount you put in. These are an exceptional option for those who are in good health. If you’re in poor health you may not receive the benefit if you pass away before the payments start exceeding the money you put in.
Making a secondary income through investing requires a combination of extensive research, good timing, and expert advice. Let us help you reach your financial goals. At the Beacon Group of Assante Wealth Management, our team will help craft a financial plan to get the returns you need to retire whenever you wish! Contact us today to learn more or set up a free consultation with our financial planners.