Because there are so many factors to consider, estimating your retirement funds for the future might be challenging when you’re in your 20s and 30s. Tens or even hundreds of thousands of dollars can separate you from achieving the expected value of your nest egg depending on everything from the timing and amount of your contributions to the return you get.
Still, you ought to have a far better idea of how your retirement fund is doing by the time you’re in your 50s. Boomers may need to take up a side gig in order to fast increase their income in order to catch up on their retirement funds. The top choices are listed here.
6.Consultant or Teacher
By the time you’re fifty, you probably know a lot about advanced topics in one or more industries. If used appropriately, that knowledge can be very beneficial.
In case you have practical experience in a field like building, you might offer your services as a consultant to businesses that could want your knowledge. If you have more academic experience, you might be able to find employment as a community college lecturer or even as an online tutor. You should be able to turn your lifetime of experience into a lucrative side employment, no matter how you choose to use it.
5.Rental Real Estate
Renting out extra space in your home is a smart move for boomers who don’t actually need it. This option has the potential to generate hundreds or thousands of extra dollars per month, regardless of whether you divide your house for greater privacy or share shared areas with your tenants.
If you have the extra money to invest, purchasing a rental property is an additional choice. In this case, you should confirm that you can rent the property for a price that will allow you to pay all of your bills and have some money left over. When the time comes for you to retire, you can either sell the home, ideally at a profit, or keep renting it out if the cash flow is adequate.
Putting in some time as a life coach is another profitable approach to capitalize on your life experience. Although it can be a full-time, licensed profession, giving assistance and identifying oneself as a life coach is completely legal.
Of course, being able to draw in and connect with clients is essential to success, as is having sound advise. But as you approach retirement, you might be able to make a respectable living by using your life experiences to impart skills that others can learn and apply to better their own circumstances.
As a baby boomer, pet or house sitting is probably one of the easiest side occupations to get started. This is especially true if you have a good reputation and know your neighbors.
The majority of American homes either own a pet or go on vacation at least once a year. This implies that you will probably have several opportunities to regularly pick up some extra cash without having to put in a lot of work or travel far.
In today’s employment market, you can offer your skills rather easily if you have more artistic qualities.
If you work as a writer or editor, you can probably work from home on your own schedule and there are many companies that require your help. As a photographer, you can make a good living by taking photos of pets, headshots, and weddings. You will have more control over your events, venues, and fees if you have a solid reputation.
Do you have a strong interest in history, museums, or the great outdoors? Do you know anything or have any fascinating stories to share about your local region with others? If so, working as a tour guide could be a great fit for you.
As a tour guide, there aren’t many obstacles to getting started, but you’ll need to figure out how to advertise and get people to come. However, word of mouth can spread quickly if you have a wealth of fascinating anecdotes to share and are passionate about the tour subjects you have selected. Since you’ll be doing something you enjoy every day, this might also be one of the most pleasurable side gigs you can find.
By taking advantage of catch-up contributions in your retirement accounts, you can increase the size of your nest egg when you’re in your 50s—this is not a “side gig.” Individuals who are 50 years of age or older can contribute an extra $1,000 to their IRAs in 2024, up to a maximum of $7,500 that can be contributed.
For people with a 401(k) plan, the situation is even better because the catch-up contribution is increased to $7,500, so that a maximum contribution of $30,500 can be made. A major step toward achieving your retirement savings targets will be taken if you are able to max out your contributions, including the catch-up provision.