3 Unexpected Sources of Retirement Income | Smart Change: Personal Finance

Retirement looks a little different for everyone — and so should the way we save for it. Retirement accounts like 401(k)s and IRAs form the backbone of most people’s retirement savings plans, and many can count on Social Security for some help too.

But those aren’t the only ways to fund your retirement. Here are three lesser-known sources of retirement income you may want to add to your financial plan.

1. Dividends

Certain stocks pay dividends to shareholders periodically, usually once per quarter. You may only get a few dollars per share that you own, but if you have a large investment portfolio, these dividends can add up over time.

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If you have a $500,000 portfolio that has a 3% overall dividend yield, that means you’ll earn about $15,000 per year in dividends alone. That can go a long way toward covering your retirement expenses, and it may help you stretch your personal savings even further.

You can invest in individual dividend-paying stocks if you’d like. But it might be easier to look for a dividend index fund. These give you instant ownership in many dividend stocks. Spreading your money between multiple companies like this is smart because if a few of your stocks have to cut their dividends during difficult times, you’ll have others to pick up the slack.

2. Health savings account

You can stash savings in a health savings account (HSA) if you have a high-deductible health insurance plan….

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