It’s little wonder that baby boomers are flocking to second careers, 60 being the new 40 and all.
But don’t rush into “You 2.0” until you determine if it’s your best move financially.
In addition to crunching the numbers before you punch out of your current job, there are a handful of less obvious considerations which, left unaddressed, could not only scuttle your startup but endanger your retirement. Health insurance and education costs, financing options, tax implications and Social Security timing all play vital roles in whether your new venture will sizzle or fizzle.
“Work is healthy as long as you feel you’re in the driver’s seat, and at 50 or 60 you can be, as long as you do your homework,” says Kerry Hannon, author of “What’s Next?” and “Great Jobs for Everyone 50+.”
You also want your other half to be on board with your plans.
“The fact is, if you’re going into business for yourself, you will probably not even be able to pay yourself for the first year,” says Hannon. “If you have a partner who is still earning and bringing home money, that’s cool. Or if you have a nice retirement package, maybe that gives you some cushion. But be aware that you really are going to need savings. Money is a huge piece of the puzzle.”
Ready to rock that encore career? Here are seven steps to a successful sequel.