By Yann Kostic and Tom Zachystal from the February 2018 Edition
We cannot welcome 2018 without wondering what the boomer generation will be up to this year. In fact, many boomers are still doing what they love, and they are still doing it well! After years of working for others, they are making the decisions, and taking the risks, to start their own businesses . . . . in retirement.
Notes writer Wendy Mayhew in the Globe and Mail: “Many people can’t wait to retire. They want to golf, travel, or just take it easy. Others can’t wait to retire so they can start the business they have always dreamed about.”
According to the 2017 Kauffman Index of Entrepreneurship, in-dividuals between 55 and 64 accounted for 25.5% of all new entrepreneurs in 2016, while the number of 20 to 30 year old entrepreneurs declined by 34.3% over a 20-year period to 24.4% in 2016.
Why? It may be that the boomer generation is healthier and more energetic than previous generations, it may be that boomers (who are notoriously bad savers) need to supplement their income in retirement, or it may simply be that older work-ers have a lot to offer.
In a recent CNBC article, Jody Holtzman, senior vice president of market innovation for AARP, suggests: “[As a boomer] you know what works and what doesn’t, you have been in small and big companies … You have a network, possibly savings, or other ways to gain access to capital. All of those things come together as key success factors for building and sustaining a business.” Plus, boomers have always wanted to change the world. And now it is their chance.
In Jalisco/Colima, the triangle formed by Lake Chapala Puerta Vallarta Manzanillo has seen incredible growth in the past decade and its share of successful small businesses opened by foreigners. Make a different resolution for 2018 and start a small business.
It is always a good idea to talk to your advisor. He/she knows your particular circumstances and can give you a realistic feedback as to how great of an idea it is to invest in yourself.
Note: This material has been prepared for informational purposes only, and is not intended to provide financial advice for your particular situation.
Yann Kostic, MBA and Tom Zachystal, CFP, are Presidents of their respective Assets Management firms, both US-Registered Investment Advisors (RIA). Tom is the San Francisco Financial Planners’ Association President. Tom and Yann cater to US expats in Mexico and worldwide. Comments, questions or to request his newsletter, “News you can use” contact him at email@example.com, in the US at (321) 574-1 529 or in Mexico, (376) 106-1613.