Encore Careers

Encore careers are becoming the focus of more seniors at they approach or enter retirement. Many people discovered the traditional definition of retirement doesn’t fit them any longer. The thoughts of lounging longer in bed, spending time in the garden or daily golf eventually lost it’s appeal.

For retirement planning, Financial Coach Todd Tresidder says: “Now is the time to question the underlining premise of retirement.   Retirement is no longer the cessation of all activity.  There is no reason to define retirement that way. You can actually enter a whole second phase of life, all the way until 70 or 80.   He says “more people are looking toward, part-time or occasional careers to supplement their income.” There are a couple of factors that are generating the change. Greater life expectancy and seniors are enjoying more robust health in the much later years than they did previously.
The Wall Street Journal recently published a story that focused on several active seniors who launched new ventures as part of their retirement planning. Roslyn Tanner Evans is a 73-year old retiree living in New York is one person highlighted in the article. She makes and sells jewelry online and at craft shows. She uses the proceeds to supplement her pension.
Another retiree focused on in the story is 66-year old Tony Nestoraone who embarked on an encore career in an online business called BackUpBetter.com. He uses his website to sell a car window attachment that helps drivers when backing-up their vehicle to avoid accidents. After becoming “burned-out” after 40 years as a financial planner, Nestora launched the business with a $50,000 investment.
He runs the business out of his home in Redding, Connecticut and now is actively working on marketing the venture. The business started in 2012, but says it hasn’t been easy. He hoped sales would be generated by word of mouth advertising but it has been slower than expected. He is now launching some new marketing schemes and has brought on a tech savvy partner in hopes of boosting disappointing sales.
The Journal article focused on one recent retired entrepreneur who has realized some quicker results. 64-year old Bruce MacDermott has been able to transfer his background in the construction business to a home-inspection franchise. He invested $24,000 and hopes to become profitable in late 2013.
But a warning note sounded from one expert is to be careful with how much you invest. After all if the venture does go sour you have less time to recapture your losses. Babson College M.B.A., faculty director Michael Cummings also reminds that if there is a steep learning curve in the new enterprise, that encore career may never adequately get off the ground.
Finely, Financial Coach Todd Tresidder reminds us in retirement planning, choosing the right encore career can allow you to earn enough to take the pressure off your assets and just enjoy the heck out of your life.

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