4 Tips to Succeed in Your Second-Act Career

By: Emily Klaus | Marketing Associate

From early on in our adult working lives, we fantasize about the day we can quit working for good and live off the 30 or so past years of hard work. Retirement seems like the ultimate dream: sleeping in, not having to request off for vacations or sick days, and the general freedom that comes with not working a 9-5 job. While many retirement-aged people are done with work for good, even more are choosing to embark on the challenge endeavor of a second career.

There are a few reasons why the older “Baby Boomer” generation is choosing not to retire. Their 401(k) accounts may have taken a hit in the late 2000s, they may have been laid off, or maybe they always had a dream of opening their own restaurant, auto shop, etc. Whatever the reason, planning a second career takes more than just money and a dream. Here are a few tips to help you plan for your second-act career.

Before your second act, take a good, hard look at your finances

One of the biggest aspects of starting a new business at any age is making sure your finances are set. Take a good look at your expenses: big ones like mortgages, car payments and college loans, and small ones like groceries, gas and day-to-day expenses. Determine where you can cut back on you small expenses (and big ones) in order to put more into savings.

Experts suggest building a “nest egg”. By having at least $1,000 in an emergency account and enough in a savings account to cover six months of expenses, you can be better prepared if your fledgling business has a rough month.

Hire a tax consultant

Taxes, now that you’re a small business owner or about to be one, can be much more complicated than you’re used to. That’s why it’s helpful to hire a consultant who can guide you through the legal ins and outs of small business taxes.

Do you work out of your home? There’s a deduction for that. Did you update your business’s plumbing or HVAC systems this year? There’s a deduction for that, too. A professional tax consultant will know about all these deductions and more, which can save you money in the long run.

A tax consultant can also help you decide what type of structure is the best fit for your new business venture. For more information on this topic, click HERE.

Set up a self-employed retirement plan

If you’re endeavoring to begin your second-act career, actual retirement is probably a long time away. However, it’s still a good idea to financially plan for when that day comes. There are a few different retirement plan options for the self-employed.

  • An SEP-IRA is great for a one-man or woman band. You can contribute up to 25% of your net-self employment income (to a maximum of $49,000).
  • A Solo 401(k) is great for entrepreneurs and their spouses. You’re allowed more contributions as an employer, and even more if you’re older than 50.
  • A simple IRA is essentially a savings incentive match plan, which is perfect for small businesses who employ less than 100 people. However, this type of retirement plan can be a financial burden for start-up businesses.

Check out this Forbes article for more filer tips, benefits and caveats for each of the retirement plans listed above.

Try volunteering or apprenticing

One of the reasons work or internship experience are required is because it shows that applicants have the basic knowledge and skills for the job. The same principle applies to starting a new career and business. If you’re thinking about opening up a restaurant, go to a local place you frequent and see if you can shadow the owner for a day to get a sense of the duties and responsibilities of the job. Whatever business or industry you’re trying to get into, finding a mentor or someone to show you the ropes can give you a behind-the-scenes look at owning a small business before you put too much time, money and effort into it.

Careful and proper planning can help your second act succeed! You may hit a few financial bumps down the road, but there are options for that. If you have been in business for at least 3 months have at least $5,000 in monthly revenue, you may qualify for a merchant cash advance from Jet Capital. Apply online today or give us a call at 866-845-9674!

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