Personally, I don't think that working during what are typically considered retirement years has to be a bad thing. In fact, I'm planning to work at least part time during some of my retirement. This however doesn't mean that I can't see some downsides to working in my golden years; especially if it's doing a job that I don't like or is particularly stressful. I could definitely see that being a downside. Therefore, I've started working on developing a career that I can move into retirement with easily and without having much of an impact upon my enjoyment and quality of life.
Start Planning and Developing Now
I hope to continue some of the same work I'm doing now as a partial retiree. Having started working on creating my own self-employed career almost five years ago, I'm well on my way to making this work. However, even if I wanted to do something completely different than I do now to earn income in retirement, there would still be certain steps I would take to being to develop and plan for this future revenue earning source or sources.
Doing things like taking a class or investigating the subject matter now can help me have a better understanding of what I'm getting into and how I can best make money from the particular work. Say for example that I wanted to sell things online to make extra money in retirement. Well then, it would probably be a good idea to start learning about online sale options such as eBay, Craigslist, Etsy, Amazon, and more so that I at least had a feel for what it took to utilize these resources to make money. It would also probably be a good idea to try selling on such sites to see what it was like, how much I could earn, and whether it was something I enjoyed and that was a feasible revenue producing option.
Building for the Future
By having a good idea of what sorts of income producing options I'm interested in -- i.e. freelance writing, antiquing, online and consignment shop resale, etc. -- I can get a jump on building such income streams now, as sideline income streams, so that they are ready to go once I get to retirement.
Take for example selling on eBay. I've already tried this, and at the moment, I just don't have the time to devote to it full time. However, I have an understanding of the process, have more confidence in my ability to use it, and know how much and what type of work is involved.
Building up such experience in advance to retirement can add not only confidence to my ability to earn extra income in retirement, but allow me to better balance work with free time, knowing how much work it will take to produce the income I need and adjusting my retirement and work needs, goals, and objectives accordingly.
Creating a Combo Sideline Income
Therefore, my objective in retirement is to create a good combination of both side income and freedom to do what I please when I please. To do this, my steps look something like this:
- List income earning options
- Select the one(s) that provide the most return, with the most enjoyment, and least amount of time required.
- Evaluate income needs versus expenses
- Evaluate income from working income streams
- Compare the difference between income need vs. income want
- Select the work that produces the best balance of income, enjoyment, and freedom
- Evaluate regularly moving forward based upon income, time required and continued enjoyment
- If any of my three criteria aren't being maximized, determine whether to continue work, try a new income stream(s), or combine current work at a lesser degree with a new option(s)
Through these steps, I hope to be able to balance both staying happily productive in retirement with earning income and enjoying my time as I'd like.
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The author is not a licensed financial professional. The information provided in this article is for informational purposes only and does not constitute legal or financial advice. Any action taken by the reader due to the information provided in this article is solely at the reader's discretion.
- Employment & Career
- Retirement Issues