Four Tips for Hanging a New Shingle in Retirement
Considering starting your own business after retiring from your “real” career? Are you wired in a way that won’t allow your creative, entrepreneurial brain to shut off just because you hit a certain age milestone or exit the corporate jungle?
That’s something great to work with in the retirement planning process, explains Donna Peterson, Senior Vice President at Wells Fargo. “There’s really no such thing as traditional retirement anymore — people certainly welcome a break from a busy career to travel or relax at the outset, but increasingly, we see retirees who want to continue creating and making a contribution, and that’s particularly true for people who have run a business. It gives them a chance to keep on inventing and building.”
Perhaps that’s why so many business mavericks “retire” to start new businesses. If a full-time golf or beach retirement is the exact opposite of the direction you’re heading, you should work with your Financial Advisor to help determine if you’re saving enough money now to finance your second-half career.
These four tips can help you get ready for Act 2:
1. Be financially prepared. Research the startup costs for your business and develop a plan with your Financial Advisor to help ensure that you'll have the funds you need.
- Know what you’re getting into. Choose a field you're actually going to enjoy. Apprenticing or volunteering is a good way to try a new career without committing anything more than time.
- Leverage your current skills. Some of the most successful post-retirement businesses have been started by people who combined their professional skills with their passions.
- Don't go it alone. Before your new venture is up and running, set up a team of advisors to support you and network with industry experts and other entrepreneurs who have been down the same road. Organizations such as the U.S. Small Business Administration (sba.gov) and AARP (aarp.org) offer a wealth of tips, and the nonprofit group Senior Entrepreneurship Works (seniorentrepreneurshipworks.org) helps people over age 50 build businesses.
You'll also need to retain professional services, such as accounting and legal advice. Involve your Financial Advisor, who can be a good sounding board for your ideas.
This article was written by Wells Fargo Advisors and provided courtesy of George Cabalu, Managing Director - Investments in McLean, VA at 703-761-4794.
Wells Fargo Advisors, LLC, Member SIPC, is a registered broker-dealer and a separate non-bank affiliate of Wells Fargo & Company.
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