Here’s How 50% of Wealthy Millennials Plan To Retire Before Age 65

Syda Productions / Shutterstock.comHalf of wealthy millennials plan to retire early, but they’re not seeking a traditional retirement. According to a recent RBC Wealth Management survey of 1,000 high-earning and high-net-worth millennials, 50% plan to retire before age 65 but plan to establish passive sources of income or side hustles to “reinvent themselves” in retirement.Wealthy Millennials Aren’t Banking on Stocks: Here’s What They’re Investing In InsteadSee: 5 Things You Must Do When Your Savings Reach $50,000Planning to have income in retirement can be a wise strategy for millennials, but it might not be so clear how to actually achieve this. GOBankingRates spoke to financial professionals to get their tips for sources of passive income that millennials may want to consider for their retirement years.Invest In Dividend StocksConsider investing in dividend stocks or low-cost diversified funds focused on dividends, said Avanti Shetye, CFA, founder of Foolproof Financial Freedom.“Companies that pay dividends do so on a schedule, usually quarterly,” she said. “Companies may cut dividends during an economic downturn, but if you are invested in a dividend fund instead of single stocks, you are likely to receive some amount in regular dividends because not all companies are likely to cut dividends at the same time.”Take Our Poll: Do You Think You Will Be Able To Retire at Age 65?Buy Rental PropertyAlthough this may require a large initial investment, it can pay off handsomely, especially if millennials buy now and plan to keep the property through retirement.“Buying rental property can help create a steady stream of monthly income,” Shetye said. “While rental income can help offset your mortgage payments, your equity keeps going up as you pay down the mortgage and as the value of the property appreciates over time. Make sure to do the math, and consider vacancy rates in your calculations before making the investment.”Create Intellectual Property“Creating an intellectual investment such as writing a book, creating an online course, or starting a blog, podcast or a YouTube channel on an evergreen topic can be very lucrative,” Shetye said. “However, creating intellectual property may require a significant investment of time upfront. Nevertheless, once created, your investment has the potential to continue to pay off without significant ongoing work. Through some systematized marketing efforts, you may be able to generate revenue by selling your books or courses, and even generate ad revenue for your blog or YouTube channel.”Rent Out Your Unused Space“Renting a spare room or basement either to a long-term renter or on Airbnb can provide a steady income stream without much effort,” Shetye said. “You may be able to hire cleaning services to make this income stream passive. You can use the income generated to offset your own mortgage or invest this income to generate other streams of income.”If you don’t want to deal with hosting, you can also rent out extra space in your home as storage space using the Neighbor app, said Scott Lieberman, founder of Touchdown Money.Invest In Real Estate Through REITsMillennials who may not have the funds to invest in a property can look for other ways to invest in real estate as a passive income stream.“Crowdfunding and REITS are effective alternative investment options that generate additional income and are incredibly accessible,” said Todd Parriott, founder and CEO of Connect Invest. “Millennials should look at online investment solutions with a low barrier of entry, lower fees and higher payouts than traditional banks.“Short note investments are a good way for millennials to access a portfolio of real estate developments that generate fixed interest over the investment period and create monthly passive income in their pocket,” he continued. “It offers flexibility to choose their preferred investment term — meaning they have defined exit dates and don’t need to worry about market fluctuations.”More From GOBankingRatesThis article originally appeared on Here’s How 50% of Wealthy Millennials Plan To Retire Before Age 65

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