Retirement is meant to be about relaxing, but that can be hard to do when you’re fearful about where you future income is coming from — especially right now, when high inflation and interest rates have been making a huge hit on retirement savings.
That’s why it’s always a great idea to look for other passive-income streams. The key here is to make sure you’re creating income that can be done no matter what you’re doing in retirement. While this includes travelling on vacation, it also includes the potential of a health emergency.
Today, we’re going to look at one solid passive-income stream that retirees can use even if they plan to travel the world.
Rent it out
One of the easiest ways for retirees to collect passive income is renting out storage. This creates a long-term income stream that’s very easy to set up. If you have a storage shed, attic, or even a storage unit connected to your apartment building, simply clear it out! Then do some research on the local costs of storage space.
What you want to do here is undercut the competition. There are many small business owners, for example, who need storage space but can’t afford the high prices that come with company storage facilities. So by saving them $50 a month, you get cash, and they save money!
Across the country, you could likely rent out a storage unit for around $300 per month. That right there creates an income stream of $3,600 per year. What’s more, if you have multiple storage areas, you could potentially rent out more than one! An attic and shed could then double that to $7,200 a year!
Don’t spend it!
The key here is that in retirement, you’re looking for a passive-income stream that lasts. And that means investing that money rather than spending it. So, for Canadian retirees, consider putting this $7,200 away each year and choose a dividend stock to go along with it.
This will almost immediately increase your passive income as well if you choose right. For instance, if you were to pick up a dividend stock that produces passive income each month. Take, for example, Slate Grocery REIT (TSX:SGR.UN). It offers monthly dividend payments, allowing you to reinvest your passive-income stream month after month.
What’s more, you can use the dividends collected from Slate stock to create an even larger amount of savings. So now, let’s see how much you could make in a year.
Adding it up
If you were to invest in Slate stock, it currently offers a dividend yield at 9.27%. It’s an excellent choice as it invests in the essential business of grocery chains across the United States. There is far more room for competition in the United States, allowing the stock to continue expanding through the country.
Plus, it’s in value territory at the moment, trading at 13.1 times earnings. And with shares down 15% year to date, you’re getting the potential for solid returns in the near future, as the stock continues to expand its operations. So, now, let’s look at how much you could make in passive income at these prices from a $7,200 investment.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| SGR.UN | $12.84 | 561 | $1.16 | $650.76 | monthly |
Now, you’ve already increased your annual passive income to $7,850.76! That becomes monthly income at $654.23. And when you need it, it will be there waiting for you, all while you finally get to relax in retirement.