Money Matters – How baby boomers are profiting from what is called the new “sharing economy”

 A growing cadre of older adults are learning how to leverage the “sharing economy” by renting out their assets, including real estate, time, and specific skills to boost their income and live a better life.  A recent survey done at the beginning of this year by a professional services firm found that 19 percent of adults in the United States have engaged in the “sharing economy” as either a buyer or a seller.  What this means simply is that more and more adults are buying in to this new mentality and either using the services of what you might call independent contractors per say, as the rates/fees are usually cheaper than going retail, or they are providing these services to an every growing population grasping the “sharing economy” as a way to lower expenses or make additional monies.  It was estimated by this same research firm that the “sharing economy” will generate up to 15 billion dollars this year alone and will account for over $335 billion by 2025.
Two great examples of this “sharing economy” are Airbnb and Uber. Risks for individuals providing these services include “wear and tear” on both their personal and real estate properties but the advantages seem to be out weighing the negatives as more and more adults are creating increased cash flows because of this.
Here are seven examples of things adults are doing to make their standard of living better.
Airbnb – 40 million users of this means a lot of baby boomers making extra income.  It is estimated that 1 in 4 hosts are over the age of 50 where at that age people are starting to become empty nesters and transitioning over to a fixed income.  Hosts over the age of 50 are earning on average over $7500 a year renting out rooms, a second home, etc in just a short period of time.
Uber – Uber estimate that over 25 percent of their drivers are over the age of 50 and 61 percent of their drivers in that age bracket had no previous experience as a professional driver. There is a 69-year old man that was sighted in this survey that starting driving for Uber after a long career unrelated to his new chosen career path.  He works when he wants, averages $18 to $24 an hour, goes home for lunch, and visits with his grand-children at a specific time every day.
DogVacay – There are currently over 20,000 people signed up as dog hosts, i.e. people that will care for your pet while you are work or traveling.  Over 1/3 of these hosts are over the age of 50.  Some earn as much as a $100,000 a year providing these services while being “retired”.  The average host earns over $1,000 a month.  Dog Vacay collects all the payments in a manner similar to Uber and then pays the dog hosts less a 15 percent commission for using the site.
Fiverr – Lets users sell their professional services such as writing, graphic design, voice overs – whatever special skills that one has and can still use through retirement.
TaskRabbit – is a platform that finds employment for “taskers” whether it be gardening, doing “handyman” jobs, shopping for clients, etc.  “Taskers” earn an average of $35 an hour according to the company which takes 30 percent off the top for the first task and then a flat rate of 15 percent from there on.
RelayRides – car owners can sign up to rent out there cars as long as they have less than 100,000 miles on them and are worth less than $75,000.  The average active owner makes about $475 a month.  RelayRides carries a 1 MILL insurance policy on each owner that rents their car out.
Vayable – this is a site that matches tourists with local guides.  Anyone willing to be a guide in their respective areas can sign up and they set their own prices.  Vayable takes 15 percent commission for the service.  Travelers also pay a three percent charge to Vayable.  Knowledge of local hiking trails, museums, bike riding trails, beaches, etc. can make you an expert that a tourist is willing to pay for your expertise.
From the retired gentleman in Arizona that uses his Uber earnings to fund worldwide travel with his wife to the recently retired woman in Northern California that was able to quit her part-time office job taking care of people’s dogs, 50+ adults still working, working part-time, or fully retired are finding unique ways to supplement their income and maintain a financially secure lifestyle.
For more information, please call Douglas J. Sedam at 1-866-549-3900, 661-295-2400 #1 or email: Doug.Sedam@ThePaseoGroup.com.  You may also learn more at www.ThePaseoGroup.com.  The Paseo Financial Group, Inc. is located at 27413 Tourney Road, Suite 140 in Valencia.
Securities and Investment Advisory Services offered through Financial West Group which is a member FINRA/SIPC. OSJ Office: 4510 E. Thousand Oaks Boulevard, Westlake Village, CA 91362, Phone: (866) 502-8929.  The Paseo Financial Group, Inc. and Financial West Group are unaffiliated companies.