How a few retirees in Texas are boosting their retirement income

How a few retirees in Texas are boosting their retirement income

The Baby Boomers are flocking to states that offer a great lifestyle and a lower cost of living now that they are primarily approaching retirement age. Texas is a fantastic state that meets the bill. But what if you discover that your retirement savings aren't nearly enough to support the lifestyle you've built up over the many years you spent working for a living?

Applying for a reverse mortgage is one method for older people who have spent most of their lives or even their whole lives in Texas and are maximizing their retirement income. If you are 62 or older, have owned your house for many years, and have faithfully made your monthly mortgage payments, you may qualify for a reverse mortgage, which could net you tens or even hundreds of thousands of dollars.

You can choose between receiving equal monthly payments or a one-time lump sum payment if approved. The nicest thing is that you are exempt from repaying the debt until you relocate or pass away. By going here, you can see the top ten lenders Texas has to offer and learn more about how to apply for a reverse mortgage there.

What other passive income sources are there for retirees to supplement their retirement income, not just in Texas but across the nation? In a recent research, Yahoo Finance recommended that anyone looking for passive income should consider real estate investment trusts or REITs.

Since you don't have to deal with the nuisance of late-night maintenance calls or management duties like collecting rent from renters who seem never to have enough money, REITS are considered preferable to owning actual rental property.

You can acquire a stake in some of the most valuable properties in the United States through REITs. REITs will pay you monthly because that is how they collect their rent—unadulterated passive income.

High-end real estate portfolio diversification for passive income

The Motley Fool claims that buying REITS in various industries, such as retail, office, multi-family, industrial, storage, and healthcare assets, is a good way to diversify your holdings. The market has decreased REIT appraisals as a result of the increase in interest rates.

However, adding REITS to your retirement portfolio is a perfect moment to buy low if you have a multi-year investment time horizon. You might get up to $125 in passive income per month if you invested $30,000 in three different REITs right now. That represents a $1500 annual rise.

Here is the investment procedure in action.

A good passive income-producing industrial REIT

Currently, Dream Industrial REIT (TSX: DIR.UN) is said to yield about 6%. With a $10,000 investment, you can buy 854 units for just $11.40 each. As a result, you will receive a passive income of roughly $50 each month.

The stock is now cheap enough to be an attractive investment because it has dropped more than 30 percent during the disastrous financial year of 2022. Considering its actual market value, it's a great deal. Dream operates and owns multi-tenanted distribution and warehousing buildings in Europe, the United States, and Canada.

Dream Industrial is currently the best investment because bigger growth is anticipated for 2023, and a joint venture is rumored to be in the works.

Searching for a Low-Cost Retail REIT?

First Capital REIT (TSX: FCR.UN), a further appealing REIT, is mentioned. At its current price of $16.80, it yields about 5.16 percent. You can buy roughly 595 units of First Capital stock with a $10,000 investment, and each unit will bring in about $43 per month in passive income.

According to reports, First Capital manages a portfolio of retail assets all around North America. They are firmly rooted in tenants who can weather economic downturns, like those who sell groceries, hardware, and other essentials. Remember that the property stands on a huge area of unused land that, with the right development, might fetch a high price.

Given that it has allegedly underperformed for several years, the First Capital REIT trades at a 30 percent discount, which is considered substantial.

A renowned investor has been playing with the stock more recently to uncover some of its untapped worth. This might include the selling of its priceless land. However, the complete sale procedure could take a long time.

In the meantime, investors in Texas and other US states can relax while raking in passive income each month.