Monday, February 15, 2010

Supplementing Social Security

As more and more babyboomers reach retirement age, they have to make multiple decisions. They need to determine whether they can afford to retire just yet and how they can supplement their Social Security checks. Social security roughly pays recipients 24% of their gross at 62+ years up to 40% at 70 subject to minimums and maximums. The fact that most people's 401K plans have been seriously compromised over the past year or two complicates the situation even more. We all know that even 40% of one's wages is not likely to be enough so let's take a look at some of the options to supplement retirement income:
1. Work part time. That would be just fine except for two problems. Part time work typically pays at or near minimum wage. I don't know about you but I am not about to do very much for minimum wage. The other problem is that part time jobs have been filled by people who no longer have full time jobs.
2. Work as a consultant. In strong economic times, this would be a viable solution for some. Firms facing financial difficulties are not about to be hiring consultants for several years.
3. Start your own business. Most of us can't really afford any type of franchise or other type of business requiring a large downpayment. If you have substantial amounts of cash to invest in a business, you probably aren't reading this anyway.
4. Start an online business. There are some online business that are practically free. You can find out how to get your own website, products that will be dropshipped, hosting, high percentage profits, and a great marketing plan on the following websites.
http://www.informationsources.net/
http://www.cbglobe.com/ See the upper left hand link to get a free website just like this one.

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