How to Boost Retirement Savings with Alternative Income Streams
Developing additional income streams has become increasingly important for retirement planning. Around 75% of American workers who lost income during the pandemic say planning for retirement is stressful. Even among those who didn’t face income loss, nearly half still find it challenging. Research shows that if you reach 60, there’s a 50/50 chance you’ll live to 90. That means your retirement could last longer than your career.
A strategic side hustle can provide immediate financial benefits and long-term retirement security.
“The gig economy has created unprecedented opportunities for professionals to monetize their expertise,” says David Beckerman, Senior Vice President of Investment at David Lerner Associates. “The key is choosing opportunities that leverage your existing skills and network while maintaining work-life balance.”
Exploring Supplemental Income Streams
Professionals across industries are increasingly exploring supplemental income streams beyond traditional employment. Whether through technology-driven platforms or service-based businesses, multiple ways exist to diversify earnings.
While established career paths remain valuable, more individuals are discovering the benefits of income diversification.
Online Course Creation
Platforms like Udemy, Teachable, and Thinkific allow professionals to create and sell courses on topics in their field. Successful course creators identify specific pain points within their industry and develop targeted educational content. The front-loaded time investment for content creation eventually yields recurring revenue with minimal maintenance.
Consulting Services
Professionals with specialized expertise can offer consulting services through platforms like Clarity, which connect professionals with clients seeking specialized advice. Independent consulting allows complete control over service offerings and pricing. Many consultants build from their professional network before expanding through targeted digital marketing and referrals.
Content Creation
Blogging, podcasting, and video channels help build authority while generating income through multiple streams. Monetization occurs via advertising, sponsorships, affiliate partnerships, or subscription models. Effective content creators maintain consistent delivery schedules while providing actionable information for specific audience segments.
Freelance Services
They offer flexible project-based work across numerous specialties. Platforms like Upwork, Fiverr, and Toptal connect professionals with clients seeking specific deliverables. Niche marketplaces exist for every profession, from legal services to design work to technical documentation.
Digital Products
Professionals can develop and sell digital products such as templates, guides, software tools, or applications, allowing them to create once and sell repeatedly. These products typically address specific workflow challenges within professional contexts and scale efficiently without proportional time commitment.
Real Estate as an Income Stream
Real Estate investment continues offering multiple pathways to income through ownership and related services.
- Traditional Rental Properties: Owning rental properties can provide consistent income, especially in stable markets with favorable rent-to-price ratios. While requiring substantial initial capital, these properties may appreciate while generating ongoing income.
- Short-Term Rental: Platforms like Airbnb and VRBO have created alternative property monetization models. These properties typically command higher nightly rates than traditional rentals but require more active management and may experience seasonal demand fluctuations.
- Property Management Services: Real estate experts can earn income by overseeing properties for other investors. This business model leverages expertise in tenant relations, maintenance coordination, and compliance without requiring property ownership.
Find the Right Approach
While there are many ways to generate additional income, the best approach depends on individual skills, interests, and financial goals. Consider consulting with a qualified investment counselor to evaluate specific options within your particular circumstances.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.