Social Security Isn't Enough: 3 Alternate Income Sources for Retirees

"There are plenty of retirees today who get the bulk of their income from Social Security. Some seniors, in fact, manage to live on Social Security alone (though they don't necessarily live well). But you should know that the average retiree on Social Security today gets about $2,015 per month. Even if you're willing to live very frugally, that may not be enough money to cover your bills, especially when you factor in rising healthcare costs and persistent inflation."

"Secondly, if you choose companies with a solid history of paying and increasing their dividends, you can set yourself up with predictable quarterly income to nicely supplement your Social Security checks. Dividend stocks aren't necessarily the only type you should invest in as a retiree. Growth stocks could do a lot of the heavy lifting in your portfolio, allowing you to generate strong returns later in life."

"So you may be interested in setting yourself up with income that doesn't add to your tax burden. That's where municipal bonds, or munis, come in. The nice thing about munis is that the interest they pay is always exempt from federal taxes. And if you buy munis issued by your state of residence, you shouldn't have to worry about state taxes on your int"

Many retirees rely primarily on Social Security, which averages about $2,015 per month and often falls short when accounting for rising healthcare costs and inflation. Establishing alternate income sources outside Social Security can help cover bills and maintain living standards. Dividend stocks offer both capital appreciation and predictable quarterly payouts when selected from companies with stable dividend histories, and they can act as a partial hedge against market volatility when diversified across sectors or via dividend ETFs. Municipal bonds provide federally tax-exempt interest, and in-state munis may also avoid state taxes, reducing taxable retirement income.

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