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Writing for Extra Retirement Income

By Edited Nov 13, 2013 1 6

Can't afford a retirement portfolio?



Build an article portfolio! That’s right I intend to illustrate why building up a portfolio of online articles is a very good investment of time. By diverting some of your energy from time wasting activities such as watching TV you can start to build a collection of income producing articles quickly. Many people facing retirement in the near future are very much aware of how little they have saved. Taking more of their current income to boost their retirement funds isn’t an option. Well writing for extra income may be the answer.



What is the value of residual income?


So how do you figure out what a certain amount of residual income is worth? I am going to use the amount of $10/month residual income. No it’s not a lot but, it will I hope prove my point! Here is the basic math: 12 months at $10 per month works out to an annual $120 dollars. That doesn’t sound like much does it? Now consider how much money you would have to invest in term deposits (CDs or GICs). My bank right now pays 1% on a one year guaranteed investment certificate (GIC). So in order to get $120 per year I would need to invest…$12,000!


Ok now that’s just unrealistic let’s step this up a notch how about a 10 year US treasury bonds? 2% yield! Wow so I would only need to invest $6000 to get my $120 per year. I am sure by now you are getting the picture. The current dividend yield for the S&P 500 isn’t much better. Yes you can get better investments but, you also assume more risk.


So to continue along this train of thought if you make $4000 per month from your job and invest 10% or $400 dollars it would take you 15 months to accumulate $6000. You could then earn $10 per month from bonds or stock dividends.


Write your way to residual income


So how long would it take to write enough articles to get the same $10 per month? The answer is, it depends. There are a number of factors that I will not go into in this article. On this site there are tons of resources for increasing what you make by writing. Suffice to say that the goal most people strive for is an average of $1 per article per month. Many articles will get less than that and a smaller percentage more.


I would challenge anyone that writing forty or so articles and spending some time on promoting them would do the job if decent keywords were chosen. So this could easily be accomplished in two months including time for research and promoting the articles. That beats the heck out of fifteen months to get enough money for the same return from bonds.



Start increasing your retirement income today


Hopefully you can see the potential of writing articles for extra retirement income. The only thing left to do is figure out where to write and, how much to write! If you want to you can sign up for Infobarrel , happy writing!


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Comments

Jan 4, 2012 6:11pm
AuroraWindsor
This article is interesting. I liked how you analyzed the amount of money required to get a certain return in a retirement portfolio compared to writing articles. It would be interesting to know the type of promotion that you recommend for articles.
Jan 5, 2012 10:21am
Goldenpig
Thanks for stopping by and commenting. Article promotion is another subject I will surely expand upon in the future.
Jan 12, 2012 3:38am
Ddraig
Very good idea for the future. People do need to start thinking about the future again, or we will all just stay poor, as people have become use to living for the now. I work to pay bills at the moment, but I would love to earn enough to start putting my earnings away in an ISA.
Jan 12, 2012 6:32pm
Goldenpig
I agree a lot of people have just been in survival mode lately. We need to keep an eye on the future and our income requirements then as well as now.
Jan 12, 2012 6:07pm
Ulalume
Really great article! Comparing making small amounts of money online to an investment is really great, and thought provoking as well. Even a small amount of extra money can go a long way, that is for sure. Personally, I'm just trying to get some extra money so I can pay back my school loans with more ease. So far, it seems to be working but I'd like to get my earnings up higher if possible!
Jan 12, 2012 6:28pm
Goldenpig
Ulalume you are well on your way. Debt reduction is a very good way of using your residual income from writing. The good news is once school loans are paid off think of all that extra cashflow you will have!
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