7 Income Streams to Help You Retire with $1,000,000

Most people dream about retiring with at least $1,000,000 in the bank, but very few actually make it. The reason is simple: most people rely on just one income source, usually their paycheck, and hope it’s enough. The wealthy know better. They build multiple streams of income so that money is working for them around the clock.

In today’s world, I personally believe having multiple streams of income is important and very much needed. You always want money flowing in from different directions. Because when one streams dries up, you still have others. My wife and I have multiple streams of income. Relying100% on one source income is setting yourself up to lose.

In this newsletter I want to break down seven proven income streams you can start building now. Layer them together, and you’ll be on the path to financial independence.

1. Dividend-Paying Stocks

Dividend stocks are shares in companies that pay out a portion of their profits directly to shareholders. Think of it as getting paid simply for owning a piece of a business.

• Why it matters: Dividends create cash flow while your investment grows in value. If reinvested, they compound, meaning your money makes more money without extra effort.

• Example: If you invest $100,000 into a portfolio yielding 4 percent in dividends, that’s $4,000 per year in passive income. Reinvest it, and over decades, the growth snowballs.

• How to start: Look for stable companies with a long history of paying and increasing dividends (often called “Dividend Aristocrats”).

Look at companies like Microsoft, Google, Apple, ect.

2. Rental Properties

Real estate is one of the most time-tested paths to wealth. Rental properties provide two benefits: monthly cash flow and long-term appreciation. We love real estate over here.

• Why it matters: Tenants effectively pay down your mortgage while you build equity. Over time, property values typically rise, giving you both income and asset growth.

• Example: A $200,000 rental property might generate $1,500 per month in rent. After covering mortgage, taxes, and maintenance, you could pocket $300–$500 monthly. That’s $3,600–$6,000 per year, not including appreciation.

• How to start: Begin with a single-family rental or a duplex. Use financing smartly so the rent covers most or all of your mortgage.

Our rental properties bring in about $900 month in passive income.

3. Business Ownership

Owning a business, whether big or small, can generate income far beyond what a job provides. This could be anything from an online store to a local service company.

• Why it matters: Businesses are scalable. Unlike a job where your income is capped by hours worked, a business can grow without you working more hours.

• Example: An online shop selling digital products might bring in $5,000 per month after expenses. Over years, this can be automated or even sold for a large payout.

• How to start: Consider starting a side hustle first. Identify a problem you can solve or a service people need.

I currently sell digital products the generate a $200 to $300 per month. It doesn’t sound like a lot but it adds up. I’m looking to add more digital products to increase this monthly income.

4. Royalties and Licensing

Royalties are payments you receive for intellectual property you create, such as books, music, software, or digital assets. Licensing is when others pay you to use your work or brand.

• Why it matters: This is true passive income. You do the work once, and the income keeps coming as long as people continue to use or buy it.

• Example: A self-published book on Amazon could bring in $500 a month for years with minimal effort. That’s $6,000 annually from one project.

• How to start: If you have a skill or talent, package it. Writers, musicians, photographers, or digital creators can all create assets that continue paying long after the work is done.

This is true for YouTube. You make the video once and you continue to see royalties off that video as longs people are interested in watching it. Videos we made 7 years ago still bring in revenue.

I use to be in the music business as an independent label and I licensed my music out to a streaming platforms and every now and then I’ll get $100 check here or a $200 check there. Again it’s not a lot of money but this was something I created over 20 yrs ago and still making money from it.

5. Index Fund Investments

Index funds pool money from investors to buy a diversified set of stocks that track the market. They’re one of the simplest, most effective wealth-building tools.

• Why it matters: Index funds deliver long-term growth without requiring you to pick individual stocks. They historically return about 7–10 percent annually over decades.

• Example: Investing $500 per month into an index fund earning 8 percent annually for 30 years would grow to about $745,000. Increase that to $700 per month, and you’d reach $1,000,000.

• How to start: Open an account with a brokerage and set up automatic contributions. Choose a broad-market fund like the S&P 500.

We do invest in index funds. For us this is more of a long term play because we continue to pump money into them monthly. We have our brokerage account with Charles Schwab. There are others like Vanguard or Fidelity. If you don’t have one, now is the time to open one and start investing in your future.

6. Peer-to-Peer Lending or Private Notes

Peer-to-peer lending platforms or private notes allow you to lend money to individuals or businesses and earn interest in return.

• Why it matters: You act as the bank, earning passive interest. Returns often range from 6–12 percent, though they carry risk.

• Example: Lending $10,000 across multiple loans at 8 percent interest could generate $800 per year in income. Multiply this over time, and it becomes a steady stream.

• How to start: Use reputable lending platforms, or consider private lending if you have local connections in real estate or small business. Always diversify to spread risk.

7. Part-Time Consulting or Freelance Work

Just because you retire doesn’t mean you have to stop working completely. Many people choose to use their skills and experience to consult, teach, or freelance part-time.

• Why it matters: This keeps your mind active, provides flexibility, and gives you an extra income layer without the stress of a 9–5.

• Example: A retired teacher might tutor students online for $50 an hour, working 10 hours a week. That’s $500 per week or $26,000 annually on top of other retirement income.

• How to start: Identify your expertise and package it into a service. Freelance marketplaces, networking, and social media make finding clients easier than ever.

I started my Freelance journey on Upwork during the pandemic. My first full year on Upwork I made $20,000 USD freelancing. Till this day, I still sometimes work with clients off of this platform.

How Much Do You Need to Invest to Reach $1,000,000?

The million-dollar question is how much you need to save and invest. Thanks to compound interest, time is your greatest ally. Assuming an average 7 percent annual return:

• Start at age 25: Invest $300 per month, and you’ll have about $1,000,000 by age 65.

• Start at age 35: You’ll need about $600 per month.

• Start at age 45: You’ll need closer to $1,300 per month.

The earlier you start, the less you need to invest each month. Add in other income streams, and reaching $1,000,000 becomes even more realistic.

Here’s a visual “Income Stream Roadmap” infographic showing how different streams can contribute annually toward the $1,000,000 retirement goal.

Final Thought

Building wealth for retirement isn’t about finding a single golden ticket. It’s about creating a portfolio of income streams that work together. Start small, be consistent, and layer in additional streams over time. Before you know it, you’ll have multiple sources of income working in your favor, and that $1,000,000 retirement goal won’t feel out of reach.

Until then,
🌴 Live Your Best Life
Jay