Even if retirement is still a world away from you, the time will eventually come when you will wind down your career and retire. As retirement approaches, the question of what to do with all the time and money that would soon be at your disposal cannot be ignored.
Is it too late to follow your dreams? Can you survive a life different from the very structured one you have lived over the last few decades? What about rest, family and the jolly good time that should come after years of dedicated service? How long can you comfortably live on your retirement benefits? Several thoughts run through your mind, such as starting a business.
While many find that they might not be able to pursue the dreams they had as youths, lots of retirees discover businesses they can do to keep busy and maintain an income stream. Regardless of your age or interests, opportunities abound for you to tap into post retirement. You might however want to tread cautiously as you are no longer as young and agile as you once were. Since you cannot risk losing your capital, your retirement benefits should be invested in a venture that is guaranteed to bring consistent returns. Low risk should be the watch-word.
Before you make that all-important decision of what business to venture into, consider the points highlighted below:
What lifestyle changes are you willing to make?
There are certain lifestyle habits you have built over the years that might be hard to drop. Such should be considered in the choice of a business venture. If for instance your job is one that entails a lot of travel, would you be comfortable leading a business that keeps you in one place? Are you looking forward to relaxed mornings post retirement or would you rather a business that allows you keep up the early morning schedule you have run for years? Do you want a business that occupies you every day or one that allows you leisure and travel time as often as you desire? All these and more should inform your decision.
What does it cost to run your household?
Do you still have dependents or are you an empty-nester? Whatever business venture you settle for must be one that can conveniently cater to your needs and your household’s. While you may not be able to maintain the same lifestyle you enjoyed while in service, the plunge shouldn’t be too deep. You and your loved one should still be able to enjoy your lives together.
Do you have concerns about adequate capital to start your dream business?
It is often unsafe to just assume what it will cost to start a business. It is wise to research extensively and make projections based on adequate information. You might find that you do not have efficient capital to properly float your business idea. Perhaps you could consider a more cost effective way to execute that business idea or a new business line.
What about a Franchise?
Have you considered buying a franchise instead of a start-up? A franchise allows you tap into the goodwill of an already established business. It also mitigates the challenges associated with registration of a new business entity. It could also guarantee a ready market for your business. Buying a franchise can significantly reduce the risks inherent in a start-up.
Large or small scale?
Do you plan to launch out big or you just want something to keep body and soul together? While a shop in front of your house or even a home office might suffice where subsistence is the objective. On the other hand, a large scale business could be capital intensive. It is advisable to pre-determine all these factors in relation to your health status and available resources, bearing in mind that you may not be able to recoup financial losses at this stage of your life.
Bringing it all together, a comprehensive financial plan is needed to set the tone right for starting a business. It will clearly define the resources available to you vis-à-vis the resources needed, thus enabling you to make apt projections and draw up an actionable plan.
Let us get you started immediately. Contact us today for that tailor-made comprehensive financial plan with a wide range of investment opportunities you can explore.
