Finance Quick Answers
I am getting ready to retire, but want to work another job after I do so. What are some suggestions?
If you’re getting ready to retire and planning a second career, the following tips will help you.
- "Avoid using an old-looking resume", says Deborah Russell of AARP, "by using language that shows you’re flexible, eager to learn, have new ideas, and can work in a team environment."
- Understand tax laws that govern your IRA or qualified retirement plan distributions.
- You may want to review your estate plan to find strategies for reducing taxes as extra income may subject you to a higher tax rate.
- Life insurance and long-term care insurance may help protect your income flow once you start working.
- If you’re planning to retire early, make sure you have enough money to maintain your lifestyle. This includes financing any education you need for your second career, capital to start a new business, and activities you want to pursue.
- "Build your technology skills - they will make or break opportunities for older workers. There is virtually no place you can go to work and not use a computer," says Deborah Russell of AARP.
- Analyze your geographic area. Is there a market for what you want to do?
- If you decide to relocate, consider the climate and the tax structure of the state.
- Talk to people working in the second career you’re considering. Learn the challenges, rewards, and cost-to-benefit ratio.
- Understand your financial picture and how a second career may affect it. If you’re younger than 70, earned income could cost you some of your Social Security benefits. Check with your local Social Security office.
Source: King, E. (1999, March/April) Tips for planning a second career in retirement. The Correspondent, 97, 14.
Sandra McKinnon, Consumer & Family Economics Specialist, University of Missouri Extension
Cynthia E. Crawford, Ph.D., Consumer & Family Economics Specialist, University of Missouri Extension
Last update: Monday, July 28, 2008