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Money How to Earn Steady Monthly Income in Your Retirement

04:20  11 january  2018
04:20  11 january  2018 Source:   fool.com

How can I use my extra RRSP room when I retire?

  How can I use my extra RRSP room when I retire? You can’t use up next year’s room this year, but there are ways to put that room to workFor example, could I contribute an additional $26,000 to my RRSP in January 2019, have it be a deduction off of my 2018 income, and still be within my 2019 contribution limit?

Retirement brings many changes in one’s life, and the biggest one is that you’re no longer dependent on your monthly paycheques. Here are some of the most reliable dividend stocks you can consider to earn monthly income .

The steady path to a dream retirement . Whether you decide to consult in your former field or pursue a hobby you're passionate about, you can make up for that missing Social Security income by earning the money yourself.

person sitting on a bench in a park: retire© Provided by Fool retire

Getting financial freedom is one of the main worries for retirees during their golden years.

Retirement brings many changes in one’s life, and the biggest one is that you’re no longer dependent on your monthly paycheques. This is the time when you’ll start dipping into your investment funds for your monthly expenses.

A trusted way to solve this problem for retirees is to build a portfolio with stocks that pay monthly dividends. A diversified and tax-efficient portfolio, focusing on income-generating stocks, makes sense in this low-rate environment when savings accounts, GICs, and government bonds pay almost nothing.

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  How seniors can use TFSAs to have more in retirement Since TFSAs were only introduced in 2009, most retirees have their money in RRSPs. But TFSAs could be a major boonThe key is to maximize both contributions and growth no matter how old you are, which means holding proper growth investments (equities) instead of fixed-income instruments that pay a pittance.

The reason the companies pay dividends is typically because of their underlying strength, steady growth, etc. These companies can be good investments for the long run. In which case I wouldn’t need to figure out how to earn passive income !

Keeping your hard earned capital in savings accounts, CDs The 4-5% return from your retirement accounts likely isn’t enough to fund your retirement , and if you touch the principle – it’s gone! Investments in Rental Properties provide a steady stream of monthly income that never touches the

Quotes in the article

Riocan Real Estate Investment Trust

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How Much You Should Save For Retirement, If You've Been Forced Into Renting

  How Much You Should Save For Retirement, If You've Been Forced Into Renting As house prices grow ever higher, renting is looking increasingly attractive (or inevitable) these days. define("homepageFinanceIndices", ["c.deferred"], function () { var quotesInArticleFormCode = "PRMQAP"; var config = {}; config.indexdetailsurl = "/en-ca/money/indexdetails"; config.stockdetailsurl = "/en-ca/money/stockdetails"; config.funddetailsurl = "/en-ca/money/funddetails"; config.etfdetailsurl = "/en-ca/money/etfdetails"; config.recentquotesurl = "/en-ca/money/getrecentquotes"; config.commoditydetailsurl = "/en-ca/money/markets/commoditydetails"; config.

Free Household Binder. 5 Real Ways to Add 0/ month Steady Income . July 5 by Sarah Titus. But I have two daughters that I know could use extra money I read your article and I really would like to know more about how you file your earned money on your taxes?

You don’t go to work each day to earn passive income , although managing your investments may still require work. Share your passive income strategies with relevant people you trust and who you know will look out for you. How to Get Passive Income in Retirement .

19.17
-0.56
-2.84%
AltaGas Ltd

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22.84
-0.26
-1.13%
Chartwell Retirement Residences

CWSRF

13.23
+0.12
+0.95%
Inter Pipeline Ltd

IPPLF

20.51
-0.40
-1.93%

Here are some of the most reliable dividend stocks you can consider to earn monthly income.

Real estate investment trusts (REITs)

REITs manage properties that generate monthly cash flows. REITs have been structured to distribute the maximum cash to the shareholders. The biggest advantage of investing in REITs is the tax treatment these companies get from CRA. REITs pay distributions before they pay tax to the taxman, and that means more money in your pocket.

In Canada, we have many quality REITs that have solid portfolios of rental properties that churn out cash on monthly basis.

RioCan Real Estate Investment Trust (TSX:REI.UN) is Canada’s largest REIT, managing 300 retail properties across Canada, and it has some of the biggest retail names as its clients. Trading at $24.65, RioCan pays a monthly distribution of $0.1175 per unit, or a 5.7% annualized yield.

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  Is part-time teacher on track to retire in 9 years? Sarah can do it, with a strategy that balances real estate with investmentsRight now, Sarah earns $55,000 annually—$50,000 annually from her teaching job and another $5,000 in income from her side jobs. Her assets total $775,000 with her largest being her $675,000 condo in Toronto. She’s a few months away from being mortgage free and hopes to put the $8,000 or so annually that she’s paying on her mortgage towards savings in 2018. Carrying costs and maintenance on her condo—including property taxes, insurance and maintenance come to about $9,000 annually.

Sometimes it takes more than just your savings and retirement accounts in order to enjoy some of the nicer things in life, especially once you’ve retired and no longer have a steady income from employment.

A little effort up front could set you up with a steady retirement income stream. By Kathleen Garvin, Contributor |Feb. Here’s how to estimate your monthly Social Security income in retirement .

Chartwell Retirement Residences (TSX:CSH.UN), the largest operator in the Canadian senior-living space, is another company to make stable monthly income. Chartwell manages over 175 locations across four provinces in Canada. Trading at $16.2, this REIT pays a stable monthly distribution of about $0.048 per unit with an annualized yield of 3.5% at the time of writing.

Energy infrastructure utilities

Just like REITs, energy infrastructure companies and utilities provide another safe avenue for retirees to earn stable monthly income.

In this space, Calgary-based Altagas Ltd. (TSX:ALA) and Inter Pipeline Ltd. (TSX:IPL) are two reliable names that pay monthly dividends.

With a 7.7% annual dividend yield, Altagas pays a $0.1825-a-share monthly distribution, which comes to $2.19 a share yearly. The amount of the distribution has increased ~50% during the past five years. The company plans to hike it payouts by 8% each year through 2019.

IPL pays a $0.14-a-share monthly dividend at an annual yield of 6.8% at the time of writing. IPL has never missed its dividend since it started the monthly distribution in 2003. The dividends have grown over time, doubling in the past 10 years.

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The size of your monthly check will depend, in large part, on when you elect to start taking benefits. This can generate a steady stream of income if you are willing to take on the sometimes grinding role of being a landlord. How the ,000-a- Month Rule Will Save Your Retirement .

Looking for a steady stream of income during retirement ? Along with Social Security and pensions, most Americans are counting on employer-sponsored 401(k) plans and individual retirement accounts. However, these options come with contribution limits.

The bottom line

Retirees can slowly build a portfolio of dividend stocks that’s good enough to produce steady cash flows when they need them the most. Such a portfolio is important to avoid depleting your retirement funds and enjoy your golden years without financial worries.

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Fool contributor Haris Anwar has no position in any stocks mentioned. Altagas is a recommendation of Stock Advisor Canada.

Nathalie has saved more than half a million. She’s 54. Can she retire now? .
Am I On Track?: MoneySense calculates how much income she needs to start generating —in 177 sleepsFrom spending more time fixing up her rural cabin to signing up for swimming lessons and spending more time on her stained-glass hobby, Nathalie has planned well for the day in July when, 55 years of age, she will have completed 10 years at the government, where she can walk away with a Defined Benefit Pension plan that pays $17,000 annually for life—starting when Nathalie turns 60.

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