Are you over the age of 50 and interested in starting a business? Called encore entrepreneurs, this is one of the fasting growing groups of small business owners according to the Small Business Administration (SBA). In fact, a recent Gallup poll survey indicated this group is twice as likely as millennials to plan to start a business.
The majority of encore entrepreneurs are combining the experience and skills they have acquired during decades of employment to create small businesses that can be profitable both financially and personally.
Some of the varied reasons for pursuing entrepreneurship at this stage include:
Tired of a corporate job and wanting to pursue something they’ve always dreamed of
Don’t want to sit idle in retirement
Lost a job and starting a business is their best option for financial stability
Ready for their second act, or third, where they can pursue a hobby or passion
Want to take their future in their own hands and be their own boss
Have endured several rounds of layoffs, and do not want to live anymore in the fear they could be ‘next’
Want to increase their income and build their retirement savings until they are actually ready to retire
As you can see, there are plenty of reasons why this might be a good idea for the baby boomers of the world. However, as with anything, it doesn’t come without challenges. The Gallup survey indicated one of the biggest challenges is acquiring funding. Yet, what if this group could use their retirement funds to start a business? Believe it or not, that’s what many are doing. Called rollover for business startup (ROBS), this method of funding allows individuals to use 401(k), IRA, 403(b), or other qualified retirement accounts to fund a business – with no penalties, upfront taxes, or debt.
Since the retirement funds are rolled into a newly created retirement or profit-sharing plan, there is plenty of opportunity to build wealth, provided you choose the right partner that can help you do so. The major benefit is you can retire on your terms – when you are ready mentally and financially.