In an article in the New York Post titled 80 is the new 60 when it comes to retirement the author said, “Call it the new American nightmare: Running out of money in retirement is scaring the hell out of record numbers of older workers, forcing them to stay in the workforce.” Perhaps you know the feeling. I know I do.
After my multiple 7 figure net worth evaporated in nine months in 2009 I went through a really dark period of despair and anger. I had saved, and I thought invested wisely, for over 25 years and was just about ready to retire when the carnage hit. So many of my investment and financial planning clients suffered as well. When I recalculated their retirement plans most would have to postpone their retirement on the average 8 years. In the article it said, “These Boomers have plenty of company. The American Dream of retirement at 65 is looking more like a pipe dream to many.”
I don’t at all agree with is the statement Louise Gunderson, a managing director at UBS in New York said in the article when she warns investors nearing retirement to make tough decisions and trade-offs. She said, “They may have to work longer and/or carefully consider their spending needs as compared to wants.”
When I faced that same spot in time I determined that I was not going to alter my lifestyle and I was not going to work longer. Thankfully I found a better way and started working part-time in a home business. During the first two years I did work longer; I was working about 35 hours a week as a financial planner and 7-12 hours per week in my home business. After only 27 months my home business income surpassed the income as a financial planner and I was able to sell that business. The beauty of home business income is that its residual; meaning if you quit the business it will still pay you income. I’ve called it The Home Business 401k! Essentially if I wanted to retire now, I could. But I’m having a lot of fun and I love what I do to help others.
I’m so grateful today that I lost over $6 million of my net worth because that price paid for me to see a better way. A home business would work for so many baby boomers faced, like I was, with a prospects of postponing their retirement and living on less.
I would rewrite the title of the article to “57 is the new 65, living the life of retirement with financial security!”