Retirement Trap: Starting a Business

Work often gives you a sense of purpose. We need meaningful engagement with our community. Studies have shown people are happier in retirement if they are working 300 to 400 hours a year either in a paid position or volunteering.

If you have left the workforce, you may find your gray hair restricting your re-entrance into the workplace. Some decide to start a business where you are the boss and can have flexible hours.

Business expenses can eat into your retirement nest egg. Consulting or service work may be better options because their cash demand is limited. You want to avoid capital intensive businesses.

Real Estate is often looked at with hopes of “flipping” a hours or having a rental. These endeavors can require large cash outlays. Some real estate markets have many investors competing for properties. Not everyone is cut out to be a landlord. I have seen real estate investments be disastrous for some and profitable for others.
Be cautious; be sure you can afford the loss of any capital outlay in your new business venture.

Consider phasing out of working full time into retirement. Your industry may be seasonal, or you can carry less responsibility and work fewer hours. Employers are starting to recognize the business knowledge and skills older workers have. Companies may work with employees to slowly transition into retirement.

Other articles to consider:

Retirement Trap: RV’s and Trailers

How Will You Practice Your “ART” in Retirement?

4 Phases of Retirement

3 Ways to Know When You Are Ready to Retire

Don’t Flunk at Retirement

You’re positioned for retirement. Is your nest egg?

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