Retirees: 3 Hacks to Make $379 Per Month in Retirement

Retirement doesn’t have to be scary. You can still maintain your lifestyle with a few hacks that could give you $379 a month.

| More on:
Path to retirement

Image source: Getty Images

Thinking about retirement can give you goosebumps. No active source of income can keep you on a tight budget if any unplanned expenses pop up. While being retired means saying goodbye to your full-time job, it doesn’t have to be saying no to having several sources of income. Since you have worked all your life and saved up money, it is time you put that money to use and spend your free time managing that money. Here are some hacks you can use to earn monthly passive income

How can retirees earn monthly passive income

The Canada Revenue Agency (CRA) has an age limit of 70 for Registered Retired Savings Plan (RRSP) but no age limit for Tax-Free Savings Account (TFSA). The 2024 TFSA contribution limit is $7,000. If you invested regularly in the TFSA and have accumulated a sizeable amount, you can now convert it into passive income. 

The stock market is conducive for dividend investing as most Dividend Aristocrats are trading at their lows. If you rebalance your TFSA portfolio from a growth to an income portfolio right now, you can lock in a 7-9% dividend yield. 

Hack #1: Dividend stocks 

The first income hack is dividend stock Enbridge (TSX:ENB). Investing in it now can help you lock in an 8% yield. The pipeline company has a low-risk business model. Its 69 years of dividend-paying history with no dividend cuts gives you some assurance that the 8% income will come every year. While the company pays you a quarterly dividend, you can withdraw that quarterly amount in three monthly installments. 

A little over $20,000 investment now can buy you 442 shares of Enbridge that could pay a $3.66 dividend per share in 2024. For a one-time $20,000 investment, you can withdraw $134.8 per month. And if you are using your TFSA for withdrawals, you need not worry about paying tax on all those dividends. 

Hack #2: REITs 

Dividend stocks are profit-making companies, but REITs (real estate investment trusts) are investment trusts. They enjoy the status of a trust because they distribute most of their income as distributions. Slate Grocery REIT (TSX:SGR.UN) is at a sweet spot with a distribution yield of 9.66%. 

Even though it has a high yield, it is a relatively safer investment as the REIT has a portfolio of 117 properties in the United States, and its tenants are grocery stores. As you know, grocery stores don’t change locations much. With not much construction happening in America, Slate Grocery REIT has scope to increase rent. 

While the REIT doesn’t have decades of dividend-paying history like Enbridge, it does pay monthly distributions from the rental income it gets. As the rental income is in U.S. dollars, Canadian investors benefit when the U.S. dollar strengthens. 

A little over $20,000 investment now can buy you 1,688 shares of Slate Grocery REIT, which are expected to pay $163 per month in distributions. 

Hack #3: High-yield dividend stocks 

Even though you are retired, you can still take some risk and invest around $10,000 in a high-yield dividend stock like Timbercreek Financial (TSX:TF). It is a stock market equivalent to becoming a lender and earning interest on your money. You at least have liquidity in stocks. When you feel things are going south, you can sell the stock and cash out. 

Timbercreek Financial is a short-term lender that only gives mortgages to income-producing properties. It has a team to handle borrowers who are late on their payments. Its stock price has been falling because high interest rates slowed loan origination and increased credit risk. But this will change when interest rates fall. A $10,000 investment in this stock can help you lock in a $80.96 monthly payout. 

Bottom line

A total investment of $50,000 in the above three stocks can generate $378.9 per month from next month onwards without any hassle of cleaning and maintenance had you rented your house or garage space. 

DetailsEnbridgeTimbercreek FinancialSlate Grocery REIT
Stock Price$45.25$7.10$11.85
No. of Shares4421,4081,688
Annual Dividend$1,617.72$971.52$1,958.08
Monthly Income$134.81$80.96$163.17

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and Slate Grocery REIT. The Motley Fool has a disclosure policy.

More on Dividend Stocks

hand using ATM
Dividend Stocks

Should Bank of Nova Scotia or Enbridge Stock Be on Your Buy List Today?

These TSX dividend stocks trade way below their 2022 highs. Is one now undervalued?

Read more »

A meter measures energy use.
Dividend Stocks

Here’s Why Canadian Utilities Is a No-Brainer Dividend Stock

Canadian Utilities stock is down 23% in the last year. Even if it wasn’t down, it is a dividend stock…

Read more »

edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.
Dividend Stocks

Got $5,000? Buy and Hold These 3 Value Stocks for Years

These essential and valuable value stocks are the perfect addition to any portfolio, especially if you have $5,000 you want…

Read more »

Growing plant shoots on coins
Dividend Stocks

3 Magnificent Ultra-High-Yield Dividend Stocks That Are Screaming Buys in April

High yield stocks like BCE (TSX:BCE) can add a lot of income to your portfolio.

Read more »

grow money, wealth build
Dividend Stocks

1 Growth Stock Down 24% to Buy Right Now

With this impressive growth stock trading more than 20% off its high, it's the perfect stock to buy right now…

Read more »

Dividend Stocks

What Should Investors Watch in Aecon Stock’s Earnings Report?

Aecon (TSX:ARE) stock has earnings coming out this week, and after disappointing fourth-quarter results, this is what investors should watch.

Read more »

Freight Train
Dividend Stocks

CNR Stock: Can the Top Stock Keep it Up?

CNR (TSX:CNR) stock has had a pretty crazy last few years, but after a strong fourth quarter, can the top…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Dividend Stocks

3 Stocks Ready for Dividend Hikes in 2024

These top TSX dividend stocks should boost their distributions this year.

Read more »