You’ve retired and are ready to start celebrating those golden years...or are you? Many people who retire may feel as if they are just starting their lives. They welcome the opportunity to do the things they never thought they could, or never found time to do, like start a business. This keeps the purpose in their lives thriving as they build something new that impacts others around them.
According to U.S. News, baby boomers have redefined retirement, and older Americans between the ages of 55 to 64 accounted for 25.8% of businesses started in 2014. That number is continuously increasing.
Why Is Starting a Business In Retirement So Popular?
Retirees still have a skill set that is useful, and they relish the opportunity to work on their own terms and showcase their abilities without having to report to someone else. Additionally, they may be able to finance these businesses with some of their savings. This could actually help increase the amount of retirement income they have access to when they finally decide to call it quits.
Taking a few courses in entrepreneurship, working out a financial plan, and determining how this could affect your retirement income are some good first steps. A financial planner should be able to provide insight on whether or not it’s wise to use some savings, how to readjust your income and tax strategy for a new business, and help set new financial goals.
Tips For Starting a Business In Retirement:
- Assess your skills: This is very important. You may have to do all the jobs in your office until you build up your staff. Can you handle it?
- Assess your time: Starting a business is very time-consuming. Make sure you’re ready to invest your time, energy, and resources into this venture.
- Assess your finances: Do you need capital? How are you going to finance this venture? Maybe using your savings is not a good idea. Can you afford to take on any debt? These are all important questions to consider.
- Know your technology: Technology drives the business world. Learn the ins and outs of technology, and use it to your advantage.
- Protect your assets: Incorporate and do what you need to do to avoid affecting your personal assets through this venture.
- Know when to quit: Even if your business is successful, know when to let your employees run the business. You may get to a point where you feel you’ve worked hard enough. Have an exit strategy in your overall plan.
Retirement is evolving, and the old definition is out the window. It’s an exciting thought to be able to do what you’ve always dreamed. Consider following your heart and bringing your ideas to fruition.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.