Starting a business during your retirement years can be a productive way to spend your extra time while rounding out your savings. It’s also fun. In fact, 54 percent of working Americans plan to work during retirement simply for the enjoyment of it, says Fox Business.
If you’re thinking about starting a new business during your retirement years, keep the following things in mind.
Work Around Your Retirement
You’ve worked really hard to reach retirement, so don’t spoil that hard work with a new business or career you’re not in love with. Consider a business that will let you live the retirement you’ve always dreamed of, says U.S. News. That may mean giving yourself a shorter workweek, building in travel opportunities or starting your business with family or friends to spread some of the responsibility.
Help Others Like Yourself
Finances are the primary concern for working boomers making $40,000 to $90,000 a year (51 percent said so), and physical health comes in a close second (49 percent), says Fox Business. Fox suggests that those looking to launch a business in retirement should consider helping their fellow retirees with finance and health. This could take the form of bookkeeping, tax preparation, teaching yoga or coaching health and fitness.
Use Your Work Experience to Your Advantage
Even if it’s been a while since you had a full-time job, you can still benefit from old connections and past experiences, says U.S. News. If returning to your field doesn’t appeal to you, consider becoming a consultant in your industry. Not only will you be able to leverage your expertise, but consulting can also afford you the flexibility that most people desire during their retirement.
Don’t Use Your Retirement Savings
No matter what type of business you decide to start, one rule remains steadfast: don’t use your retirement savings to do so — it’s far too risky, says U.S. News. If the business isn’t successful, you could be draining your hard-earned retirement savings. Instead, focus on starting a business with as little money as possible, and then reinvest any profits.
Are you planning on starting a business during your retirement years? What kind of business will it be?
Comment on this article
Comments
tamia on October 12, 2012 at 6:55am
Please help me save money
Dorothy M. on October 12, 2012 at 7:58am
Excellent article. Thank you Ally for the information you have provided I will continue to share it. Fifty years ago I taught my children not to plan on retirement, companies would not and most could not be able to continue all that was being promised over the past fifty years. I personally believe it is wise to take very good care of my/your health so we can continue to be productive, active and a contributor. We as seniors have much to share with others, our communities and families. Needless to say we have a lifetime of wisdom and knowledge in many areas which is definitely needed today and will continue to be. Thank God I was born in 1934 my husband in 33 we are so thankful for the opportunities we learned during the past almost eighty years. Fortunately we are healthy enough to be of service and are mentoring people of all ages through issues of various nature as well as helping hundreds start a business which will provide an additional ongoing income that can be willed to their children.
Ally on October 12, 2012 at 8:00am
Thanks for sharing this with us and for the kind words, Dorothy! We’re glad to that you’re still sharing great personal finance knowledge. Sharing this with our team over here.