We all know that starting a business takes money, but it doesn’t have to eat away at your entire retirement. There are plenty of small businesses that you can start with $5000 or less. Further, there are also many steps that you can take to minimize the amount of money you spend once you get started. Keep reading for a few quick tips on how to start a business during your retirement without putting your current assets at risk.
Do your research.
As with all things financial, research is your first step. Think about what you want to do and then cross-reference that with your limitations. Lifetime Retirement Partners explains this might be physical ability, required time, or stress. You also want to keep in mind the amount of money you can make without damaging your Social Security or changing your tax bracket. You’ll also need to look for a business that aligns with your personal desires, likes, and goals but that does not have significant startup costs.
Options Abound
While you can start some businesses with zero dollars, many of the most profitable do require a small investment. Yahoo! notes that a few of these include:
- Boat cleaning
- Dog breeder
- Event planning
- Home inspector
- Jewelry maker
Any of these can be tailored around your schedule and scaled or reduced whenever you want to work a different number of hours. You are not limited to these types of businesses, either. Anything you did in the business world before, you can do as an entrepreneur now. And, if you have a passion, such as golf, art, or woodworking, you can base your new business around this now that you don’t rely on your income, and enjoy earning doing something you love.
Off And Running
It doesn’t matter what type of business you choose to open, you want to keep a tight watch on your bottom line. After all, the less money you spend now, the more you can put back into savings.
One glaring problem that many new business owners have is staying on track. But, you can use an online monthly planner to help you plan ahead for the next 30 days. Among the benefits of an online calendar for planning is, if you’re a visual person, you can customize your calendar so that you can quickly identify what needs to get done. Staying on track will help you keep on top of deadlines, which is one way to ensure that your customers pay on time.
Something else to consider is forming an LLC. LegalZoom explains that an LLC limits your personal liability. This means that if your business takes on debt, your home and retirement accounts won’t be targeted. Further, as the LLC is not taxed separately, as is in the case of a corporation, you won’t be spending as much on taxes.
Perks of a New Profession
There are many reasons that you might want to work now, including keeping yourself busy so you don’t get bored during retirement. But, there are benefits for everyone else as well. This is especially true if you plan to take on employees, as older workers are known to play a crucial role in helping the next generation by teaching and setting standards.
Whether you are looking for extra cash for your self-managed retirement account or just want to fulfill a lifelong dream, starting a business now is a great option. And, if you plan accordingly, give yourself the right tools, and choose a low-cost startup, you won’t have to drain your current savings to get up and running.
Contact your Lifetime Retirement Partners advisor today at 800.971.2989 for more information on how taking out of your 401(k) or other retirement investment vehicle might impact your future livelihood.