If you're a baby boomer who's retired over the next five years, this is the time to maximize your income and savings. Thanks to the catch-up contribution, you can take $1,000 or $7,500 for your IRA an additional $1,000 or 401(k) plan. So this is a great opportunity to earn extra money and reinforce your retirement savings.
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As a pre-retirement boomer, you probably aren't too keen to pick up a second job to generate extra income. That's why passive income strategies can be a great idea. Here are some of the best options.
Check out: I made $10,000 using one of Dabramsey's best passive income ideas
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Perhaps when it comes to the idea of passive income for Boomers, the top dog is rental property.
It's not 100% “passive.” Because you need to buy and maintain the property, find the tenant and process the documents. But once everything is set up, the rental real estate business can be quite practical. Each month, you will receive a check that you can use to offset your mortgage, pay your bills, and invest in other assets.
Find out: 10 Best Places to Buy Short-Term Rental Properties to Earn Passive Earnings in 2025
Buying dividend stocks is one way to generate true passive income. Depending on the stock you buy, you can earn 3%, 4%, 5%, or even more with money in addition to the capital viewing that the stock can generate.
If you stick to a company that has not only raised dividends for at least 25 years in a row, but also raised dividends, you will be taking advantage of a potentially increasing source of income each year.
Generally, dividends received from stocks are taxed at a special tax rate of just 20%, 15%, or 0%, depending on your income and tax filing status. This will have a higher tax effect than bonds, with the addition of a potential capital appreciation kicker.
One reason many older workers get paid more is that they have a wealth of experience. As you approach retirement, you may be an expert in at least one, if not at least one area. This experience is valuable and people are willing to pay for what you know.
If you can successfully communicate your knowledge through e-books or online courses, you can generate passive income for the rest of your life. Creating a product requires some advance work, but once completed, it can stay online and generate passive revenue with little to no work involved.
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