You’ve retired or are about to retire from the military and you want to start a business. As a military retiree you have an advantage that many entrepreneurs don't. A stream of income. That stream of income can give you options that others don't have. And while people may think that businesses can only be started by the young and enthusiastic, the stats show a different picture.
According to U.S. News, baby boomers 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. And as mentioned above, a military retiree has income to support lifestyle expenses while the business gets up on its feet. Also, a business could become a valuable asset that 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 or select another business structure 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 and have a plan to transfer ownership. Bottom Line? Have an exit strategy in your overall plan.
It’s an exciting thought to be able to do what you’ve always dreamed. Retiring from the military or starting your second retirement doesn't mean your life is over – 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. The information in this material is not intended as investment, tax, or legal advice. 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.