FIE:CC - Retirees: 3 Hacks to Make $1131.80 Per Month in Retirement

2024-01-06 09:30:00 ET

Investing in retirement is key if you hope to actually have money available throughout your later years. But if you want it to last decades, you’re going to need a real place. That can be created with the help of your financial advisor.

But if you’re looking for a few extra tricks to help you along in your retirement, you’ve come to the right place. Here are some cost-saving and cash-creating ways to make killer cash every month of your retirement.

Join CARP

If you haven’t already, one of the best ways to save money and indeed create some is through joining the Canadian Association of Retired Persons (CARP). CARP is a non-profit organization that seeks to promote social change and financial security for aging persons across the country. Part of this, is through providing discounts and benefits through Canadian partners.

Yet while there are 330,000 members, as of writing, that’s still a low amount of seniors — especially as we consider the aging baby boomer population. Currently, there are about 7.3 million Canadians over 65 years of age! That’s about one in five Canadians that could benefit from these benefits.

And it really does apply to just about everything. In fact, go through your bill statements each month. Is your healthcare coverage up to date and receiving senior discounts? What about your phone bill, internet bill, or even groceries? Basically, if you’re spending money, you can likely save through discounts. Make sure to join CARP and start saving.

Other considerations

Let’s say you’re on top of all the senior discounts out there. There are still other ways to save money through little changes. In fact, there are ways to make money through very little effort. And this is important, as you want to try and create money for life. So, even if you’re 99 years old, these could still work for you.

One consideration is to find a new credit card from your bank each year. Ideally, find a credit card that will offer $0 in fees the first year as well as extra reward points that can be used to spend on items. Speaking of purchasing, joining applications like Rakuten can pay you for those purchases through cash back as well!

Finally, look at what you have. If you have a home that you don’t wish to downsize, rent what you can! Whether it’s storage in your basement, attic, or garage, that can bring in hundreds each month. Your parking spot could also provide a cheaper option for others and income for you!

And, of course, invest!

So, you’re saving as much as you can and bringing in extra cash. You could certainly just put it in a savings account or even spend it. But I certainly recommend investing in it. In fact, if you’re already used to spending a certain amount for your budget each month, use any extra cash to invest in long-term options that pay to own them.

For instance, you can find a 30-day Guaranteed Investment Certificate (GIC) with a 4.5% interest rate right now! Or, invest in a great monthly income exchange-traded fund (ETF) such as iShares Canadian Financial Monthly Income ETF ( TSX:FIE ). You’ll gain monthly income that lasts and, in return, get a portfolio of some of the best Canadian stocks managed by a professional.

Right now, this ETF offers a dividend yield of 7.35%. So, let’s say you end up saving $500 per month from CARP benefits and making $500 per month in passive income. That’s $1,000 per month and $12,000 per year! You then invest in the FIE ETF and see shares rise to former 52-week highs. Here is what that could create.

From these small changes, you could have a total passive income of $13,581.61! That comes out to $1,131.80 each and every month. Now, go enjoy your retirement !

The post Retirees: 3 Hacks to Make $1,131.80 Per Month in Retirement appeared first on The Motley Fool Canada .

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

2024