Retirement Income Rescue – Simple Techniques to Increase Your Retirement Income

Retirement income can be increased by following a few simple techniques. We don’t want just any increase in revenue. We want it to be safe, reliable, predictable, and lifelong. Hopefully it can increase too.

First, let’s clarify. We will not look for higher risk ideas. We want less risk if possible. Today I was reading an article in the February 7, 2011 issue of Fortune Magazine called “Even Losers Can Win, Thanks to the Government’s Bailout Binge” by Allan Sloan. The article is about the complex way GMAC handled its bailout money and how, instead of investors losing all their money, they ended up with roughly half of it, give or take. Some had money left and others did not. My point is that we as individuals don’t get bailed out and no one is going to help us but us. GMAC might still be solvent, but we have to take care of ourselves and create more retirement income on our own.

The first step is to insure your current retirement income against loss. If you have investments in the market and are earning income from them, you probably need to change the way you work. An annuity can provide safe and secure retirement income. With market investing, if the market goes down, so does your income. With an annuity, your income would stay the same. The first step is to secure your current retirement income and protect it from market risk.

The next step is to start thinking about how to generate more income. If you are using CDs for income, I would also recommend looking into annuities. Annuities have guarantees that can far exceed the benefits of CDs. Depending on your age, you can guarantee a 4% or 5% income stream and not lose access to your principal. That will outperform CDs for a long time.

The next step is to look at your taxes. Changing the way you pay taxes on your investments can make a big difference in how much retirement income you can keep. Are you subject to taxes on your social security? Did you know there are ways to reduce that tax if it’s caused by retirement income from your investments? It doesn’t work for everyone, but it’s worth looking into.

You can also start a home based business. Tax write-offs are great and the income potential can be great too. A word of caution, do not invest a lot of money in starting your business. A business is started to earn money not just from tax write-offs. Take a look at network marketing business or if you have a passion and some skill, take a look at how to start marketing and selling your ideas.

I have a close relative who likes to go to garage sales and for cheap items that he thinks he can sell on eBay for a higher price. This simple activity adds retirement income and is a home-based business. If you are internet savvy, there are plenty of opportunities to work from home and make money online as well.

There are many ways to increase your retirement income with careful thought and action. The first steps with investments will be the most immediate help in increasing your retirement income. The next steps for starting a business or money making idea from home can also be very helpful. I have some clients who make more money in retirement than when they were working! You can too!