A 2013 study of entrepreneurship found that more than a quarter of workers aged 65 and older plan to start their own businesses in the next three years.1
Developing a business after you retire from your regular job could be rewarding personally and financially, but like most potential rewards it comes with risks and challenges. If you have an entrepreneurial vision, here are some tips that may help you maintain a realistic perspective.
Don’t invest more than you can afford to lose
Current failure rates suggest that 50% to 75% of entrepreneurs may not succeed and could lose their savings.2 It’s unlikely that you would invest all your assets in the stock market at age 65, and a similar logic applies to a new business. You don’t have as much time to recover from potential losses as you might have had earlier in your life.
Do your research
Perform due diligence by researching all aspects of your business idea, including (but not limited to) competition, potential customers, marketing and sales opportunities, facilities and shipping needs, office and payroll costs, and supplies and raw materials. Put together a business plan with realistic projections of expenses and potential revenues for the first five years.
Consider consulting
If you developed expertise in your regular job or previous experience that might be used for consulting, this option could be a smoother transition to post-retirement employment than a brand-new business. Consultants often earn more for their time than regular employees and have more freedom to choose their own hours.
Be realistic about your time and energy
Starting your own business is a big project at any age, so consider how much time and energy you want to expend. If you’re ready for retirement, you probably don’t want to work 60 hours a week on your new business, yet many entrepreneurs may work longer hours than salaried employees.
If you do start a new business, keep in mind that you may have to file a variety of tax forms and other legal documents. Be sure to obtain appropriate professional guidance.
1–2) The Wall Street Journal, April 7 and May 8, 2013
INVESTING RISK DISCLOSURE
Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money. Before investing, consider the funds’ investment objectives, risks, charges, and expenses. Contact Mahoney Asset Management for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
IMPORTANT CONSUMER INFORMATION
This web site has been prepared solely for informational purposes. It is not an offer to buy or sell any security; nor is it a solicitation of an offer to buy or sell any security.This site and the opinions and information therein are based on sources which we believe to be dependable, but we can not guarantee the accuracy of such information.
Representatives of a broker-dealer or investment adviser may only conduct business in a state if the representatives and the broker-dealer or investment adviser they represent: (a) satisfy the qualification requirements of, and are approved to do business by, the state; or (b) are excluded or exempted from the state’s licenser requirements.
An investor may obtain information concerning a broker-dealer, an investment advisor, or a representative of a broker-dealer or an investment advisor, including their licenser status and disciplinary history, by contacting the investor’s state securities law administrator.
SECURITIES: ARE NOT FDIC-INSURED/ARE NOT BANK-GUARANTEED/MAY LOSE VALUE
This information is intended for use only by residents of CA, CT, DC, FL,, MA, MD, MN, NC, NJ, NY, OH, PA, and VA. Securities-related services may not be provided to individuals residing in any state not listed above.
The financial calculator results shown represent analysis and estimates based on the assumptions you have provided, but they do not reflect all relevant elements of your personal situation. The actual effects of your financial decisions may vary significantly from these estimates–so these estimates should not be regarded as predictions, advice, or recommendations. Mahoney Asset Managment does not provide legal or tax advice. Be sure to consult with your own tax and legal advisors before taking any action that would have tax consequences.
Securities offered through
Newbridge Securities Corporation,
member FINRA / SIPC
Investment Advisory Services offered through
Newbridge Financial Services Group Inc.,
an SEC Registered Investment Adviser.
Office of Supervisory Jurisdiction
1200 North Federal Highway, Suite 400
Boca Raton, FL 33432
Toll-Free: 877-447-9625
Phone: 954-334-3450
Fax: 954-489-2390
