Why Your Retirement Plans May Include Your Own Business
Why Your Retirement Plans May Include Your Own Business
Not everyone has saved the money they will need to fund their retirement years. If you’re like most people, you spent your twenties and thirties buying a home, raising a family and saving for college. Who had extra money each month to invest in a retirement account, and did you know anyone who could afford to contribute the maximum amount each year?
Not everyone makes six figures each year, and those who don’t just manage to get by from paycheck to paycheck. If you’re headed toward your retirement years and have no idea what they will look like, then you are not alone.
The sad truth is that the average Baby Boomer is not prepared financially for retirement. Forget about the dreams of playing golf in the morning and having drinks by the pool in the afternoon. It’s time to face some cold, hard facts about your retirement plans.
Unless you’re set to inherit a fortune from your parents, today’s Boomers need to re-think what their retirement will look like. This generation is going to have to consider that their retirement will be different from their parents, who worked for the same company for over thirty years and retired with a pension. The Boomers have earned, saved and spent their money differently than their parent’s generation. And, because of this, their retirement will also be different from their parents.
Hopefully the average Boomer who has worked most of his or her life will have a little income each month from Social Security. But, don’t count on this to be enough to cover all of your monthly bills. You’ll have income from your 401(k), IRA or annuities you’ve been paying into, but you need to consider some other alternatives that can help your monthly budget.
I suggest that some of you Boomers consider starting a business as part of your retirement plans. This will help keep you busy, provide some income, and allow you to take advantage of tax benefits you wouldn’t otherwise be able to. It can also be part of your growth as you transition into your senior years.
A consulting business is easy to start up, so think about what you are good at, what you enjoy, and maybe even what you’ve earned a living doing. Use your expertise to help others while you make some money that adds to your quality of life during retirement. Work as an entrepreneur rather than for someone else, and you can make your own schedule each week plus have the flexibility to take time off when you want to. Why would you think about a minimum wage job when you have the opportunity to work for yourself?
Supplementing your retirement income with a home-based business can help you afford the lifestyle you’ve been planning for. Add this to your retirement plans as you daydream about your golden years.
©2007 Kathy Swann
Kathy Swann has over 25 years experience in office management, payroll and Human Resources and also works as a consultant for several small businesses. She is the author of the “How to Win” series of e-books available at http://www.SuncatcherPress.com