Five Sources of Income for Retirement - what is the Fifth one ?

Five Sources of Income for Retirement - what is the Fifth one ?

Columbus, OH · Member since 2018 · 164 posts · 126 votes

Hello BP community and for those who already made it :-) :-) (Baby boomers & Gen X)

when I was in school some one once said to me, to be financially free you need to have five sources of Incomes - at that time I was naïve and I translated that into having 5 Jobs :-). fast forward 20 yrs and that statement was stuck in my subconscious mind and as you know if something is stuck in your subconscious mind for a long period of time, your mind tries to achieve that goal with out you knowing it - basically it works out plan to achieve that goal(quote from Napoleon Hill's - Think and grow rich). most of these are aimed towards retirement or financial freedom -

so my question is what would be that ideal fifth source of income to add in portfolio :
I have :
1) a good paying job (W2 Income) - My first source of Income

2) a REI portfolio (anything & Everything related to REI) - My Second source of Income

3) a strong 401k Portfolio (401k -good company matching, IRA's , Social security etc.) - My third source of Income

4) a growing stock portfolio - My fourth source of Income

5) ??????????????? I need your help determining what would be that ultimate "Fifth" source of Income

I know many have figured these income streams - specially baby boomers (born between 1946 and 1964) and Gen X (born between 1965 and 80) and I as a Millennial requesting baby boomers and Gen X to advice as they are the one's who have laid down a strong foundation for us "millennials" so that we can do the same for Gen Z , Y.

Bring it on!!!!!

Cheers

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Burnaby, BC · Member since 2017 · 283 posts · 268 votes
5y

You don't need 5 sources of income, as long as you have strong enough passive income generating streams its fine. Whether that is simply stocks and having $100K a year in dividends, $100K net rental income, $100K income from social media or a mix you can meet your retirement goals. Of course diversifying is highly recommended at least into 2 streams like real estate and stocks but you can still diversify well within one line of revenue stream (ie. buying properties in different states, countries etc.)

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  • Specialist · Easton, PA · Member since 2018 · 137 posts · 48 votes
    5y

    Sugar Momma/Sugar Daddy?

  • Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    5y

    I don't need 5, I only need 1.

  • Columbus, OH · Member since 2018 · 164 posts · 126 votes
    5y

    @Scott Mac - wow!!! congratulations ;)

  • Burnaby, BC · Member since 2017 · 283 posts · 268 votes
    5y

    You don't need 5 sources of income, as long as you have strong enough passive income generating streams its fine. Whether that is simply stocks and having $100K a year in dividends, $100K net rental income, $100K income from social media or a mix you can meet your retirement goals. Of course diversifying is highly recommended at least into 2 streams like real estate and stocks but you can still diversify well within one line of revenue stream (ie. buying properties in different states, countries etc.)

  • Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    You lumped social security in with your 401k but these are 2 different sources of income.  Social security is guaranteed income for life assuming you meet work requirements but a 401k you save what you save and spend what you spend, once it is gone it is gone.  Separate these out and you have your 5.  Also you heard this advice a while ago when pensions were more common, outside the private sector they are getting less and less common.  

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