With the economic crisis still in full swing, everyone’s looking for more ways to generate income, and people have tried everything, from the stock market to take on additional jobs, with mixed results.
However, there are dozens of other income channels that are overlooked, even though they may even be more effective than the standard ones you’re used to hearing about.
We’ve put together a comprehensive list of some of the lesser-known sources of income, along with some detailed explanations for how each of them works and what you can do to make use of them.
Keep reading to learn all there is to know about alternative sources of income, how to utilize them in today’s market and economy, and finally, which one is the best fit for your current circumstances.
Even though they’re generally considered to be one of the safest, and also the slowest investments one can make, bonds have been making a comeback on the market, and it’s reflected in their value.
Premium bonds are backed by the federal government and they’re managed by the National Savings & Investments department, giving Americans access to an asset with the highest return on money invested.
However, what sets them apart from stocks and other assets on the market that has taken a hit is the fact that they don’t have interest rates, but rather, an annual prize rate, which is currently sitting at a steady 1.4%, although this can and will vary with time.
Essentially, Premium Bonds are something like a lottery with prizes fluctuating between $25 to $1 million, although they do have a maximum investment cap per person.
Unlike bonds, investing in a trust can be riskier, as they tend to be much more volatile and generally trade on the stock market where things can get pretty hectic every once in a while.
Despite this, a trust employs a slightly different strategy when it comes to market performance, as they set aside a fixed amount of money during up periods in order to ensure their customers will get their dividends when the time comes.
Some trusts have gradually grown the number of dividends paid out every year, and they’ve kept going at this for decades on end, slowly becoming one of the better-known asset classes on the market.
Despite this, a trust should only make up for a small section of your portfolio, so make sure you’ve been given the low-down by an experienced financial advisor before committing to one.
Some time ago, annuities were the go-to option for anyone looking to secure some form of monthly income in their retirement years.
Unfortunately, annuity rates have failed to withstand the test of time, and the majority of them have capsized in value, leading to smaller numbers of retirees investing their hard-earned money into this asset class.
On the other hand, though, an annuity is a great way to secure a regular income after they’re no longer able to remain part of the workforce.
In fact, anyone struggling with health or financial troubles can get a much better rate on annuities, and they even offer policies that can help shield you against inflation if things really go south.
This makes annuities one of the best investment options for those looking to retire in peace, and while the option is definitely secure, you should make sure you’ve discussed it with your financial advisor before you’ve made a commitment that won’t look good along with the rest of your investment portfolio.
High-yield company shares
Due to the COVID-19 pandemic, a great number of companies have cut their dividend payouts as a means of staying afloat, meaning that dividend-paying shares were almost impossible to come by in the past few years.
That being said, the pandemic has died down somewhat, and companies have begun paying out dividends regularly, some of them even as high as 3.5%.
Of course, this makes these shares extremely risky, and with just a minor hiccup, everything could spiral out of control, leading to complete mayhem on the stock market and leaving thousands of investors without a dollar to their name.
What you should do, is focus on building a portfolio diverse enough to be able to handle this amount of risk, and if you’re still unsure whether you can handle it, talk to your personal financial advisor in order to get a 2nd opinion.
There are a number of different things you can do to secure additional income for yourself and your family when you retire.
Despite so many options, a lot of people focus on the ones they keep hearing about, without ever even putting in the effort to do their own research.
Our list will help you find an alternative source of income, and if you make the right decisions, a way to grow your money in the long term, which is invaluable in times like these.