There are two types of income you can have (according to the IRS). That’s active (or earned) income or passive (unearned) income. The difference is how it is obtained and how it is taxed

How to earn money in retirement

Active income is money you trade your labor for. I do it part time.

The easiest way to supplement your retirement income is to simply keep working, either full-time or part-time. Assuming you are physically and mentally capable of continuing to work. Being mentally capable is very important. If you’re dissatisfied with your retirement job or don’t like what you’re doing, it can have an adverse effect on your physical health.

Active or earned income can be done almost immediately, but passive income takes time to generate and usually requires some upfront investment.

Everyone knows how to generate active income. You work for it and you get paid for your work. That’s what many retirees do, including me, either full time or part time. In fact, I worked part-time for about ten years in the same profession that I retired from.

What I want to mention is passive income. It takes a bit of work to get it started, but once the money starts rolling in, you may need to do very little except maintenance to keep it running.

If you’re willing to put in some research, learning time, and money, NOTHING BETTER PASSIVE INCOME..

How to generate passive income?

Passive income is income for which you do not exchange your work. This could include investments, residual income, affiliate income, or rental income.

passive income it always takes a while to start. As I mentioned, getting into this type of income stream depends a lot on how quickly you need extra money. I’ve listed four sources of passive income and there are probably many more, but these may give you something to think about.

Investment Income: People who have invested in the stock market, either directly or through mutual funds, have made a lot of money since November 2016.

Investing in the stock market probably involves the most financial risk if done carefully, it can be the most lucrative. There is tons of information out there that could be useful in helping you make an informed investment decision.

Personally, I would start by learning how to invest and then start with a small amount of money that I could lose and not worry about. It may be beneficial to do some simulated trading to learn how the process works.

Affiliate Marketing: Building an online business takes a long time. Every overnight success story you hear comes after months or years of research, study, and hard work. But if you have an idea for a service or product that can be done online, it may be worth the effort to pursue. Think of Angie’s List, eBay, or Facebook.

Affiliate marketing requires the ability and knowledge to develop a website and content to match the There are many Amazon online merchants that offer affiliate programs. Do a search for a niche, products or services that you would consider.

Rental income: If you have enough money to purchase a few rental units, this may be the best way to supplement your retirement income and leave a legacy for your family. Do some research on multi-family homes, apartments, or commercial properties and see what’s available in your area. I know a guy who took equity out of his home to buy a rental unit. It worked for him, but it’s an idea that might not be for everyone.

Do not launch into being an owner without studying how to be one. There is much more to it than just buying a property and renting it out. There are government regulations to comply with and tax regulations to be considered.

If you decide to own, look for information on buying and owning rental units. Get a spreadsheet to plug in some numbers and see how specific properties will generate revenue. Learn about the landlord/tenant laws in your area and get advice from a real estate professional you trust.