Some retirees start a new business or outside employment to keep earning income after leaving their 9-to-5. In some cases this can be a smart move, but in others it can be costly.
“Unfortunately, this is one of the greatest potential burdens on a retiree’s finances,” said Craig Kirsner, MBA, author, spokesman and president, Stuart Estate Planning Wealth Advisors. “The fact is, most businesses fail, so no matter how good the business idea sounds, it’s usually not a good idea to start a business when you retire.”
If you are determined to start a business in retirement, do the math first to make sure your money is offsetting the funds you have spent. Consider starting a business that you can run from home without special equipment to keep overhead costs down.