Retirement can be tough; however, with the right steps towards saving and investment, it can be possible to generate an additional income stream to support your retirement. There are multiple ways you can invest today and generate income for when you retire. With the variety of investment options available for you, it can be possible to build an additional income stream long before your retirement period begins. Here is how you can do it:

Invest in ULIPs

The Unit Linked Insurance Plan is an ideal low-cost option for investment. The amount you invest in ULIPs will be invested into funds chosen by the fund manager. They will invest in a mix of debt and equity funds. It is a reliable wealth creation instrument and has a tax saving benefit. You can gain from the dividend as well as capital appreciation.

Invest in stocks for dividend income

The Stock market has always been able to generate value for investors. The amount invested into shares will generate dividend income in the long term. Dividend income has tax exemption .

Mutual Funds with Dividend payment option

Mutual funds is a widely preferred form of investment for many. Investing in mutual funds is less risky since the portfolio is diversified and you can gain from the dividend payout as well as capital appreciation. It is advisable to choose mutual funds with dividend payment option to generate regular income. In this product, the fund managers will invest your funds into equity which has a higher dividend payout.

Buy a Property

If you have excess funds on hand, you can invest in property. You can rent out the property decide to move in or sell it. In addition to the generation of regular income stream in the form of rent, you will also benefit from the capital appreciation of the property. You can choose to move in at the time of your retirement or rent it and generate monthly income.

Invest in Immediate Annuity

An Immediate annuity is a plan which gives you the option to choose between Life Annuity and Life Annuity with Return of Purchase Price. It will pay you for the rest of your life. There is one amount of premium that you need to pay, and you are eligible for this retirement program. The first plan terminates in case of sudden death whereas, in the second plan, your nominee gets the benefit.

Own a Business that you love

Now that you are retired, you can finally do everything you want to. Having worked all your life, you can now invest the capital and start your own business in the field you are passionate about. Invest the fund into the business and generate revenue through the same. It will keep you occupied and allow you to follow your dreams. It will be slow, but you will eventually start earning.

Invest in life insurance policy to protect your family. The policy will keep your loved ones secure and protected in case of an unfortunate event. It will provide financial security to your family in your absence. If you are not around, your family will be able to continue living their life without falling into a debt trap. It is essential for you to invest in a life insurance policy that suits your requirements. The sooner you invest, the better it is. You can enjoy a higher coverage at a low premium. Investing in life insurance will generate income for your family in case of your demise. It will not help you build a regular stream of income but will provide financial security when you are no longer around. Your family will receive the lump sum at the time of your unfortunate demise, and they will be able to continue with their lives without any financial stress. You can efficiently invest in the online life insurance policy and provide for your family even when you are gone. You can choose riders and add-ons to the policy depending on your current financial position and the requirement of funds based on your current lifestyle.