Why Smart Retirees Are Embracing Passive Income Streams
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Why Smart Retirees Are Embracing Passive Income Streams By: Marc Guberti Marc Guberti Marc Guberti is a personal finance writer who hosts Breakthrough Success, a podcast where he teaches listeners how to grow their businesses and achieve personal transformations. Has also written: How To Stay Healthy and Wealthy in Retirement How Pets Can Improve Your Retirement The Retirement Budget Makeover: Trim Costs Without Sacrifice What No One Tells You About Social Security Timing The New '4% Rule': Finding the Right Withdrawal Strategy See full bio Published: Dec 13, 2025 4 min read Getty Images Passive income streams can be powerful supplements to nest egg withdrawals in retirement. When done well, these income sources don’t require much maintenance and can help you hedge against rising costs. Some of the smartest retirees are using these passive income streams to fund their lifestyles. Read on for how you can, too. Must ReadExperts are Bullish on Gold — Here's How to Get InWarren Buffett on Market Volatility — and 3 Ways You Can Take AdvantageSide Hustles You Can Do In Your Spare Time Types of passive income There are many ways to generate passive income. Here are four to consider: 1. Dividend stocks and funds Dividend stocks and funds are reliable, simple ways to generate passive income. You can buy shares of these companies or funds and receive regular payments. Mature dividend-paying companies (also known as income stocks) are often able to achieve moderate growth as well. Some dividend investors accumulate shares before retiring and capitalize on dividend reinvestments. This investing model lets you reinvest dividend proceeds back into the market, buying additional shares, which can increase your passive income every quarter. Just keep in mind that companies that offer dividends don’t offer the same growth potential as more risky stocks. And dividends aren’t guaranteed: Companies can lower or cut them completely if they choose. Save Smarter: Take control of your money with the Rocket Money budgeting app, one of Money's favorites 2. Real estate crowdfunding Real estate is great for cash flow, but it can also be too expensive for many investors — and a nightmare to manage. No one wants to spend their golden years receiving phone calls in the middle of the night that their tenant has a plumbing problem. That’s why some retirees turn to real estate crowdfunding, which involves pooling your money with other investors to buy into real estate without actually having to manage the property yourself. Real estate crowdfunding platforms give you the ability to invest while staying hands-off the property, and receive regular income. Gold Offer: Sign up with American Hartford Gold today and get a free investor kit, plus receive up to $20,000 in free silver on qualifying purchases 3. Creating digital products You may also be able to use your skills to generate income by creating and selling digital products. Some retirees create eBooks, templates and online courses related to their past careers or hobbies that can be sold online. Creating and selling digital products requires some upfront work, but it can turn passive over time. You can also treat this income stream as a part-time job if you’re looking for some extra work to keep you busy in retirement. Extra Money: See how you can get up to $1,000 in stock when you fund a new active SoFi invest account 4. Annuities Annuities are another resource for retirees who want additional income streams. These financial products turn your money (either in a lump sum or premiums) into regular payouts. Depending on the annuity, these products can offer tax-deferred growth and can be a good way to help weather market volatility. Must ReadExperts are Bullish on Gold — Here's How to Get InWarren Buffett on Market Volatility — and 3 Ways You Can Take AdvantageSide Hustles You Can Do In Your Spare Time