Saturday, June 13, 2020

Start an Online Business for Retirement Income

Could a home-based business be next after you retire?
Millions of Americans are discovering that their Social Security benefits and savings are not going to provide nearly enough income for them to maintain a satisfying retirement over the next two or three decades of life. Many of them are also concerned about avoiding boredom and finding something to do which will maintain their mental acuity after they leave their former career behind. They may have long dreamed that someday they would run their own business, work their own hours, and build a company they own, control, and could even pass on to another family member.  These are all great reasons to start a home-based business after retirement.

There are many ways to come up with ideas for retirement businesses. For example, you could start with the book "Top Home-Based Job and Business Ideas."  (Ad)  However, even after you come up with a business idea, you may not know where to go from there.  Not everyone can get all the help they need by reading a book.

As a result, this month I invited Mike Lieberman, the founder of Retirement Redefinition, to share some information about the benefits of starting an online business to increase your retirement income and exert more control over your future.  You may discover that his website is another good way to find help with your overall retirement planning. His guest article is below:

Why You Should Start an Online Business

by Mike Lieberman

Retirement is changing.

Your retirement is likely to be very different from your parents, and unrecognizable from your grandparents.

This stage in your life will likely last 20-30 years, compared to the 10-15 years it used to.

How the time is spent is also vastly different. The vision used to be of endless golf, relaxation and travel.

While that still exists for some retirees, it is not enough, and many of them want to experience something more during their retirement years.

They want to stay sharp and engaged during the second half of their life.

This is apparent in the statistic from the U.S. Bureau of Labor Statistics report which states, “Self-Employment in the U.S. -- the self-employment rate among workers 65 and older (who don’t incorporate) is the highest of any age group in America: 15.5%.”

People in the retirement stage of life are starting businesses.

So you’re interested in starting your own online business?

I mean, why not?

The benefits can be rewarding not only from the money standpoint, but also mentally.

When you start an online business some of the benefits include:

     Easing the transition from your work years to your retirement years
     Having additional money coming in to increase your savings
     Keeping you mentally engaged and on point

Here’s the deal though:

In the digital age we’re in, the barrier to entry is extremely low to start a business.

Couple that with the variety of businesses you can start, and it can quickly become overwhelming to know what makes sense for you.

It is key to put yourself in the right mindset and recognize what fits with your vision.

How do you recognize what will work for you?

Fantastic question.

That’s my smooth segue to say....

A question is where it begins

Like anything, you can Google the answer, but that will likely make you feel overwhelmed.

That is why I reached out to Kevin Lyles and had a conversation with him.

Kevin specializes in assisting Professionals and Executives as they make retirement transitions with the lifestyle side of retirement planning.

The question I asked him was “What’s the most important thing you’d ask someone who was thinking of starting a business in retirement?”

He said, “What do they want to get out of the business?  That will lead to how I could counsel them, because there are many possible answers.”

We will get into what those possible answers are, but first let’s get into the importance of this question.


The importance of answering this question

It might be easy to give a quick response and move on. Before you do that, pause for a moment and reflect back on your career.

Total up the number of hours you spent over the year on your career between commuting, working, and the time after hours you spent thinking about your job.

It’s near impossible to calculate. The number is A LOT.

The role your career played was that it dictated your life and your time. This was required, though, in order for you to survive.

So, as you think about starting a business in retirement, work takes on a new meaning and you dictate how much time you will spend on it.

The business you decide to start should support the vision of how you want to spend your time.

You are now in control of that aspect of your life.

That is why it is important to become crystal clear about what you would like to do, so you can create something which supports your vision.

Following me?

5 reasons to start a business

Kevin shared five common answers to why people start a business.

1.  I need the income

As you approach retirement and you need extra income on a monthly basis to survive, you are likely best suited to continue with your current work or start seeking new full-time opportunities.

If you are a few years away from retiring, you might consider starting your online business now to get a head start.

That will definitely ease the transition.

2.  I want the extra spending money

Let’s say you have a strong retirement financial plan and your immediate financial needs are taken care of.

If that describes you, then starting a business could help to put some extra money into your savings account or give you the flexibility to do some things you have always wanted to do, such as donating to charity or planning a big vacation.

The income from your business can allow you to do these things and not be concerned about reducing your retirement savings.

3.  I want to build a legacy

Legacy is a word which can mean different things to different people.

It might mean the legacy of having your kids take over your business.

Maybe it is accumulating more wealth to hand down to future generations.

It might also be that you want to set an example for your kids and grandkids, or there may be more personal reasons.

4.  I want to solve problems for others

Typically this is what people think of first. They’ve done something for so long and wish to continue to do it in retirement, in a consulting role.

You might also be really good at something, and find people are willing to pay you to do it or teach it.

5.  It gives me purpose and meaning

Filling the void of time you will have after leaving your traditional career is one of the biggest obstacles people face after they retire.

 “If they have been working 10-12 hours a day for 30-40 years, now they wake up and don’t know what to do with themselves,” said Kevin. “Having a business can really fill that void and give them a purpose and a reason to get up in the morning.”

In closing

By becoming clear about what you want to get from your business, it enables you to better identify opportunities that support your vision.

Let us know in the comments if you’re thinking about starting an online business and why.

About the Author:
Mike Lieberman is the founder of Retirement Redefinition.  He created the site to help you define your retirement lifestyle and start an online business which fits it.

If you are interested in learning more about financial planning, common medical issues as we age, Medicare, Social Security, financial planning, where to retire and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

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1 comment:

  1. This is a great article, and I think that to find out why you want an extra income is a vital first step in beginning a business plan. I think this is especially true if you are retired and looking for a supplemental income or a mental challenge knowing the differences between the types of businesses and the return on investment is vital when choosing a side hustle or business.
    Billie Daddario
    Retired A La Carte


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