Finding Cash Flow from Passive Income Sources

Posted: March 25, 2024 by John Welcom

Passive Income Sources

Tired of chasing high-risk investments or selling off assets to cover retirement expenses? Discover 8 proven ways to create passive income streams and enjoy a more comfortable retirement. Plus, learn how a life insurance policy you no longer need may be a hidden source of cash through a life settlement.

One of the most sought-after assets for retired clients produce passive income — cash earned without too much effort.

These revenue streams, universally loved by financial advisors as part of retirement plans, reduce the pressure to stretch for favorable yields on bonds or sell equity stock positions too aggressively.

The NewRetirement retirement planning blog identified several passive income sources for retirees to boost their financial security, including the following:

1: Allow Use of Property

Generate passive income with a home or property by renting a room, turning a vacation property into a short-term rental, or even leasing access to your driveway as a parking spot.

2: Rent Possessions

Rent fun luxury possessions, such as an RV, high-end sports equipment, or the family boat.

3: Invest in Real Estate

Invest in real estate rental property, high-yield real estate investment trusts or private real estate mortgage loans.

4: Leverage Hobbies

Turn hobbies into revenue by finding ways to get paid for pet sitting, building things for people, or selling photographs online to a platform to be used by thousands of users.

5: Get Rewarded for Everyday Spending

Share knowledge, expertise or passion in arenas that potentially produce income, such as starting a blog or podcast, teaching an online course, or designing customized travel experiences for others.

6: Use Incentive-Based Credit Cards

Only use credit cards that convert spending into cash back, statement credits, or rewards that save money on future purchases.

7: Invest Wisely

Invest a portion of retirement savings in vehicles that are designed to generate passive income on a predictable frequency: annuities and high-dividend stocks and bonds are the most common.

8: Permit Companies to Track Behavior

Allow companies to track online browsing and spending patterns in return for cash payments and rebates on buying items with certain retailers.

The above ideas will appeal differently to clients based on their needs and preferences, comfort levels, and unique personality traits.

Is There a Hidden Asset?

Many retirees think of their personal assets in traditional terms – cash, houses, etc.  But it's important to remember that assets come in many forms, including those that may be less obvious at first glance.  One such asset, often out of sight and out of mind, is a basic life insurance policy. 

A Life Insurance Policy’s Potential

A life insurance policy is one of the most valuable assets many Americans will ever own. First, it can yield a significant tax-free death benefit payable to a client’s beneficiaries upon his passing.  Second, it can be an instrument for accumulating cash inside of the policy, be used to either help pay the premiums in later years or as a source of income through policy loans and withdrawals.  Additionally, there is a third way that a client’s policy can help produce cash flow during his retirement years.

Creating Passive Income with a Life Settlement

There is a healthy “secondary market” for life insurance policies that provides a level of possible liquidity like other assets.  In fact, this market may end up producing the most valuable asset a client owns.

The sale of a life insurance policy is called a life settlement. A life settlement is defined as the sale of an existing life insurance policy to a third party for more than its cash surrender value but less than its net death benefit.

In a life settlement transaction, a senior sells his or her life insurance policy to a licensed third-party entity for a cash payment. The entity then takes over the premiums on the policy and collects the death benefit when the insured passes away. These transactions are highly regulated, with laws governing life settlements in most states, covering approximately 90% of the U.S. population.

Contact Welcome Funds for a Client’s Life Settlement Needs

Clients may not realize that their existing assets hold income-generating potential.  A thorough assessment could reveal unexpected opportunities, like a marketable life insurance policy.

If a client no longer wants, needs, or can afford a life insurance policy, then contacting Welcome Funds to explore a life settlement transaction may be an attractive option to explore.

Welcome Funds, an experienced life settlement broker, ensures that qualified seniors receive a fair market price for a life insurance policy.  And the firm is obligated, per applicable law to act in the client’s best interests throughout the transactional process.

For more information or to receive a free, no-obligation life insurance policy appraisal, then please call 1-877-227-4484 or visit

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