I stumbled across a story on MarketWatch about "encore" careers which, as the name implies, are post career careers. Apparently there are between 6 million and 9.5 million American between the ages of 44 and 70 currently working in encore careers (as young as 44? really?).
There are obviously two primary benefits; making money and having purpose--the implication being that having purpose would make for healthier aging.
I think this sort of thing is vitally important. From a financial aspect anything that you can do that relieves some of the burden off the portfolio is a huge plus. It allows for a bigger margin for error, better weathering of the next decade-long round trip to nowhere, allows for more choice with how much risk the portfolio takes and when that risk is taken and having more money left in case life gets more expensive later on due to health reasons.
Is it crazy to think that using 2008 dollars a couple could fund a modest lifestyle on $4000-$5000 per month and one way or another generate $1500 from a part time yet purposeful encore career(s)?
From a healthy aging I have several role models including my father and several people here in Walker and can attest, anecdotally, that having something that gives you purpose (and if it pays, all the better) does make for healthier aging.
I think finding something that is both purposeful and paying would probably take years but that needn't be a hardship as the things that would give you a sense of purpose have probably been important to you for a while and figuring out how realistically it could be monetized would not be that difficult.
As a matter of philosophy I would encourage anyone who feels no sense of purpose in their work to figure a way to change their circumstance. It may take several years to bring about, which in itself creates purpose, but life is too short to wish away every week hoping to get to Friday night. This may mean less income which allows me to tie in living below your means which hopefully everyone does but of course we know that is not the case.
Wikinvest Wire
6 comments:
I technically retired nine years ago with a nice pension and benefits (being in the public sector, the pension is overly generous and the health benefits, although lessened, better than most). My spouse retires next year at age 56 with full public retirement benefits. Upon my retirement, I immediately morphed into two other productive careers and my spouse already has a full-time music position as a pipe organist lined up when we move to NC next year.
I agree 100% with Roger on living beneath your means and to prepare yourself for a productive continuance of your life after your "real" career comes to closure.
When one abruptly stops doing productive labor, count on being jolted into a premature malaise that golf will not resolve.
T
Re, a part time job after retirement. Been there, done that. I taught for 5 years as an adjunct university professor. Though it was enjoyable at the time, I would not want to repeat the experience. Think then, about five years at Wal Mart, or anywhere else. A part time job sounds fine from the other side of retirement, but on this side I'll take my coffee and leisurely mornings, thank you. I have a purpose-driven life without the need for external structure. I grant that some may need to work out of necessity, but that's a different matter. (By the way, $1500/mo = $18.75/hr at 80 hrs/mo. That's not a part time job many will find.) John
John - I think Roger meant a two team operation generating 1,500 a month...9.375/hr. @80hr.
Nothing wrong with "juicing" the returns of your human capital with a "encore" career. Just another way to stay diversified.
I turned my non-profit volunteer work into a CEO position, 3 days a week (first ever employee for this organization), and enough $$ to sleep a night--not mind you substantial in terms of market place as an attorney, but good enough for something you love. It replaces the need for 30% of the cash I spend. I had been thinking about it (really needed to think about it given the market) and read Roger's columns on this and thought, absolutely, let's go for this. Five years of volunteer work as an attorney paid off. I would say find what you love, do it, and eventually monetize on it.
Long time reader, great blog.
Lorraine
Lorraine, great story, thanks for sharing. I agree wholeheartedly about needing to put time in and then having a chance to monetize. This may be the case with my firefighting as well.
There are a zillion other things like this as well.
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