Best Retirement Income Streams: Ultimate Guide for 2022

Are you looking for that retirement income opportunity?  Why not take whatever hobby you have and use it to create serious hobby income.  This is a low-stress option, with spin-off associated health benefits.

This “Best Retirement Income Streams” guide will give you a retirement income well above the average retirement income.

The first question that comes to mind when anyone mentions hobby income is, “how much can you earn?”

The answer could generally be said to be “not much,” but of course, that could be quite enough if you have other retirement income, such as a generous pension or 401k plan, and you have your own home fully paid for, and you are not paying rent.

But most of us are not in that fortunate situation – in any event, you would still get bored.  There are hundreds of thousands of baby boomers retiring every year, and many are yet to appreciate that they will be living for another 20-25 years.

Best Retirement Income Streams
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The Best retirement income streams or opportunity

Consider this retirement income opportunity

Perhaps the most lucrative profitable hobby that I have discovered to date is web hosting.

A friend of mine was a lawyer, and when he retired, to give himself an interest, he started to attend computer swap meets.  One day he realized that every web site had to “live” somewhere, i.e., it had to be hosted on a server.

So, being trained to have a logical mind, he built himself a server to host his websites. Soon he was doing it for his mates and then began to advertise his service on the web as “the world’s cheapest web host.” Now, as he had virtually no overheads or expenses, he could keep this promise and found that the majority of his clients were computer professionals who had perhaps 15-20 websites. They had found him on the web.

He charges only $20 per year per site, i.e., about one-tenth of what the big boys charge the public. So he continues to attract computer professionals, and his revenue continues to soar.

After seven years, he now appears to have more than 5,000 clients, and if each is happy to pay him $400 per year, his revenue must be $2,000,000. Naturally, his costs have increased substantially (he is continually installing larger and more sophisticated equipment). However, as the whole process is as automated as can be, he must still be a long, long way ahead.

Could you do the same?

You can find other examples of a retirement income opportunity and profitable hobbies in this extra income magazine.

Retirement Hobbies that make money at home
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Need for Additional Income

The average retirement income is pitifully low, and we do need additional income from a “profitable hobby”  – which is, of course, a small business that you enjoy. The sole employee is you, the boss.

Unless you have at least $800,000 in your 401K account, you will struggle financially and will continue to look for the ideal retirement income opportunity.

This $800,000 is the traditional goal suggested by the financial planning industry, because (assuming you have your home fully paid for) a 4% annual draw-down of capital, plus earning 6% on the money each year, this should last you for 20 years.

But I don’t believe it, as financial investments are not inflation-protected. Additionally, who knows if you’ll need to draw far more capital should you or your spouse need long term hospital care or unique accommodation in later life.

So you’ll need hobby income to provide for some income protection – even if you have well more than this magical $800,000 – as even a budget vacation trip does cost a few dollars.


Which brings us to your relationship with the taxman.  It’s not generally a big item when you write your business plan for a regular retirement income opportunity, but you still have to consider it.

You must pay tax on your income (as assessed to pay the fee); however, in the early days, tax is never a problem for a hobby business as your expenses (including depreciation on your equipment) will always exceed what small profit you earn.

Where you cross the line from a hobby to a business is a matter of intent. If you intend to make a profit, then you’re technically operating a company, even if benefits are still a few years away. But you can record your early losses, to minimize those future taxable profits.

The United States is a typical tax jurisdiction (it’s not really, but let’s assume so for this example). In the US, a tax is imposed on income by the Federal, most states, and many local governments, and this applies to most owners of a profitable hobby, who are generally sole traders.

Taxable income is total income less allowable deductions, and most business expenses are deductible. Individuals may also deduct a personal allowance (exemption) – up to around $12,000 for a couple – and certain personal expenses, including home mortgage interest, state taxes, contributions to charity, and some other items. Then the taxes start at 10%.

So unless you find an exceptional retirement income opportunity, and your hobby income is above said $50,000 pa, you should not need to consider paying taxes.

Retirement income Hobbies

Any Hobby Can Become An Online Business

A final thought if you need extra money – any hobby can be the basis for an online business using the technology from Site Build It! (That’s how I publish this small, simple and profitable magazine that you simply are now reading).  Then, when you’re ready to boost your hobby income, this direct access to Sitesell will get you started.

But no matter what profitable hobby you operate, when you put in place your ideal retirement income opportunity, the magical result is that you’ll have above average retirement income.

Additional Inspiration

If – after you have read this page and need further inspiration – you will find other suggestions for retirement business ideas as well as 37 case studies of very profitable hobbies in the manual that emerged from the responses to my newsletter.

And then there is always the Home Based Business magazine for additional insight as you continue to search for your perfect retirement income opportunity.

Thank you for reading this- Best Retirement Income Streams article. In the comment section below please let me know your own opinion

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