Starting A Business Instead Of Retiring
BusinessWeek:
Ric Cox retired at 55, but he didn’t stop working. Instead, he launched ChicagoCondosOnline.com, a database that sells condo information to realtors and listings services. A first-time entrepreneur, he hoped to channel the same creative energy he brought to his 32-year publishing career into his new venture.
About 20% of the entire over-50 workforce in the U.S. is self-employed, and one-third of those workers made the transition to self-employment after turning 50, according to a 2007 RAND Corp. study commissioned by AARP. Switching to entrepreneurship is one way retirees stay active, says Deborah Russell, the AARP’s director of workforce issues. But she says people must know what they’re getting into: ‘For those who have not done this before, they may have a false expectation that working for yourself also means less stress and less demand, and it may be in fact the exact opposite.’
While starting a business is a challenge at any age, a first-timer starting a business later in life will encounter different obstacles than younger entrepreneurs, particularly when it comes to funding the business, securing health insurance, managing personal finance, and succession planning. Younger people can spend years trying to make a company profitable and can return to salary jobs if they don’t succeed, but people over 50 may not have the flexibility to deal with such a loss, says Julie Zissimopoulos, an economist at RAND and co-author of the study. Experts say older entrepreneurs need to plan carefully to align their ventures with their life goals. Read full aticle.
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