How to Turn Your Passions Into Retirement Income

4 ways to profit from the activities and interests you love


By Nancy Collamer for Next Avenue



Walt Galvin is a dog walker for Rover.com
 

Last year, Mike Liff, now 71, relocated with his wife from San Francisco to Portland, Maine to be closer to family. The retirees explored their new hometown and thanks to a chance conversation at a barbershop, Liff learned that MaineFoodieTours.com was looking for part-time guides. After hearing that the job would give him a chance to walk around the city, share his enthusiasm for history and food and meet interesting people, Liff decided to apply.

“I’m having such fun,” he said. “I like to say I didn’t retire, I ‘rewired.’ To have a place to go and a purpose is really important to me — and my wife appreciates it too.”

During the height of the tourist season, Liff works six mornings a week, leading a 3-hour tour around the old Port city. After winter arrives, the sports fan takes on a different part-time job, working as an usher for the Maine Redclaws, the developmental team for the Boston Celtics. He gets to watch “really great basketball,” while earning supplemental income in the process.

Like Liff, you too may be able to generate income from your passions and hobbies. Here are four strategies to consider, along with resources to help get started:



Mike Liff is a part-time tour guide for MaineFoodieTours.com

1. Find a part-time job. Take inspiration from Liff and look for a part-time job that offers the chance to engage with your hobbies and passions on a more regular basis.

For example, if you love plants and being outdoors, you might find it satisfying to work at your local arboretum, community park or garden center. Or, if you’re open to traveling for part-time work, you can search on CoolWorks.com for seasonal jobs at the National Parks, ski resorts and dude ranches.

If food is more your thing, take a look at GoodFoodJobs.com where you’ll find a variety of part-time opportunities. Current listings include a recruitment manager for a nonprofit teaching kids from all socioeconomic backgrounds what real food is and a food demo specialist.

2. Become a gigster. Eager to strike out on your own, but don’t want the headaches of starting and marketing a business? Consider applying for short-term gigs that play into your passions by using gig technology platforms and mobile apps.

For example, if you love pets and would enjoy working as a pet sitter or dog walker, you could sign up on Rover.com. You set your own schedule and rates; Rover.com handles the payments and insurance for dogs in your care. In exchange, the company takes 20 percent of your earnings to cover administrative costs and overhead and to make a profit, of course.

It’s proven a lucrative option for Walt Galvin, 66, a recently-retired defense contractor and dog lover based in Woodbridge, Va. “As a retiree, Rover provides me with a great monthly supplemental income. And it’s great exercise, too!” he says. Galvin averages $1,500 a month from Rover, he told me.

On his Rover.com page, Galvin says: “I love dogs! Over the years I’ve fostered over 150 dogs as a volunteer/board member of a local lab rescue group. I don’t foster anymore, but as a new retiree with time on my hands I’m looking to continue to interact with dogs and their families.”

If you Google “gig platforms” you’ll find that there are many other possibilities. For instance:

Coachup.com: Sign up to offer coaching services to local clients.
Gigmasters.com: It matches people who provide event services (like music entertainment, wedding photographers, magicians and officiants) with prospective customers.

EatWith.com: Apply to be a dinner party chef, working out of your own home.

3. Sell your art or crafts online. Many retirees enjoy hawking their wares at local venues like craft fairs, art shows and farmers markets. It’s a nice way to get out of the house, interact with customers and generate income in the process. But why not expand your reach by taking advantage of online marketplaces as well?

For example, James Hartman, 67, a California-based artist, uses UGallery.com as part of his marketing mix. Hartman says UGallery connects him to a broad audience of people who otherwise would never have seen his paintings. “I find the experience very personable,” he says.

UGallery.com, which represents about 500 artists, splits the sale of artwork 50/50 (the company also covers the costs of packaging and shipping). Interested artists must go through an application process to be accepted.

Other online marketplaces for artists and craftspeople include Etsy.com (primarily for crafters), Amazon Handmade and Zibbet.com. Before setting up shop at any, make sure you compare fees and services, since terms differ among the sites.

4. Teach your craft. Whether you’re a polished piano player, a witty writer or a master at mahjong, you can likely earn income in retirement by teaching others how to do what you do so well.

If you prefer to stay local, look into teaching opportunities at continuing education programs offered through your town, community colleges or private adult education programs. Or you can offer lessons out of your home (just be sure to check zoning restrictions before hanging out a shingle).

To take your teaching online, you can deliver classes through your own website or by creating a class using an online teaching platform like LinkedIn’s Lynda.com, Skillshare.com or Udemy.com.

Networking Can Help, Too

Finally, remember that as great as technology is, the best opportunities for part-time work in retirement often surface as the result of everyday networking. So keep your antennae on alert.

As Liff’s story shows, you never know when that random barbershop conversation might lead to the semi-retirement gig of your dreams.

© Twin Cities Public Television - 2017. All rights reserved.

The 9 Keys to a Happy Retirement

What the experts say, plus 8 great retirement books

By Richard Eisenberg for Next Avenue

 

Credit: Getty Images

 

It turns out that happiness and retirement do go together.

Well, based on the research and books I’ve read and interviews I’ve done since becoming editor of the Money & Security and Work & Purpose channels at Next Avenue in 2011, they can go together if you play your cards right.

And it’s not just about having saved enough money or having a great pension, though both of those help. I’ve come to the conclusion that there are nine keys to a happy retirement, one of them pertaining specifically to couples. I’ll lay them out shortly and suggest a few books that can help you retire happy.

Of course, the definition of retirement isn’t what it was even 10 years ago. For many people, retirement in 2016 is not about quitting your full-time job full-stop at 65 and then living a life of leisure.

 

What Is Retirement, Anyway?

For one thing, 65 was the retirement date set in 1935 when FDR signed Social Security into law. It made more sense when people didn’t live as long as they do today and at a time when most employers provided guaranteed pensions once their employees retired. A March 2016 Ameriprise study said 71 percent of current retirees rely on guaranteed pensions from their former employers while 75 percent of pre-retirees plan to rely on anything-but-guaranteed 401(k)s when they retire.Catherine Collinson, president of the Transamerica Center for Retirement Studies, recently told me that many workers now envision retirement as a transition, something that happens over time. The current catchphrase is “flexible retirement,” which means either going from full-time to part-time work or working in a different capacity or working as long as you’re able.

That said, here are the nine ways to increase your chances of being happy in retirement:

 

1. Figure out in advance what you want out of retirement. By that, I mean things like: how you’ll spend your days, where you’ll spend them and what would make you fulfilled.Stan Hinden, the author of How to Retire Happy, recommends starting to think seriously about retirement when you’re around 50 or 55.

One key decision is where you will retire and how much traveling you’ll want to do. Some people choose to retire in another country. It’s not for everyone, but a recent survey of 389 expats by the website Best Places in the World to Retire found that 81 percent were happier in their new country than where they lived before.

Why is that? For one thing, the cost of living was often less — sometimes much, much less. That meant they didn’t need to worry as much about their expenses or finding a high-paying job in retirement.

Many of the expats also said they were less stressed than before because their new country wasn’t as fast-paced as America. Many also said they loved their new “simple life,” especially because they now had more free time to volunteer (I’ll come back to that last point shortly).

If you’re wondering which are the best places in the world to retire, the answer depends on which survey you believe. International Living says the top places are Panama and Ecuador. And the Live and Invest Overseas site has picked the Algarve region of Portugal and Cayo, Belize.

2. The corollary to No. 1 — If you have a husband, wife or partner, talk frankly together about what you both want out of retirement. Neal Frankle, a noted financial planner, recently wrote on Next Avenue that he finds it helpful for couples to discuss their retirement dreams and write them down. Then, he says, they should mark each item as a “must have,” a “want” or a “wish” and be ready to compromise.

One thing you’ll want to figure out is how much time the two of you will want to spend together, since this may be the first time you’re both available all the time.

Hinden told Next Avenue that he and his wife came up with a system that worked for them: Early in the week, they each would spend time alone or with their own friends. Then, toward the end of the week, they’d do things together, like go to museums, theaters or restaurants.

3. Come up with a retirement income plan. By that I mean: sit down and figure out how much your 401(k) and other accounts will translate to in monthly income; how much you’ll get from Social Security and any pension; how much you can afford to withdraw each year (the rule of thumb is around 4 percent) and which accounts you’ll tap first for withdrawals to keep taxes down.

Devising a retirement income plan before you retire will relieve stress once you are retired. But only 52 percent of pre-retirees have done so, according to Ameriprise.

By the way, don’t be surprised if your retirement income or expenses don’t turn out the way you expected. When Ameriprise surveyed retirees, it found three types of expenses were higher than the retirees expected: health care, food and taxes.

4. Choose when to retire and then follow through (if you can). The authors of an excellent book called The Retirement Maze surveyed 1,477 retirees to see what made the happy ones happy. One thing they found was that workers who were able to retire by choice were happier than ones whose retirement was thrust on them: 69 percent of the retirees who retired by choice were satisfied with their lifestyle but only 36 percent pushed into retirement said they were.

I realize many people aren’t lucky enough to be able to decide when they’ll retire because they lose their job or their health forces them to stop working. But if you can pick your date, you should.

5. Stay engaged and healthy (if you can). The career coach Bill Ellermeyer says the happiest retirees he knows are either engaged in some kind of meaningful activity or are actively employed. Some have become entrepreneurs; some have started encore careers, doing either paid work or volunteering for the greater good, some are just volunteering here and there.

He also says they “eat well, sleep soundly, play often, exercise at least three times a week and maintain strong social connections.” In fact, a survey by Age Wave and Merrill Lynch of 3,300 pre-retirees and retirees said “good health” as the No. 1 key to happiness in retirement.

6. Get a part-time job in retirement. Some of the happiest retirees are people who phased into retirement by gradually reducing their full-time hours. But if you can’t arrange to do that, then just quitting your job and then finding part-time work can be very satisfying, not just financially but psychically. Studies show that working in retirement helps keep your mind sharp and helps you avoid getting isolated and lonely.

The trouble is, not enough employers are helping their older workers work out a flexible transition to keep a job there part-time in retirement. A recent Transamerica study found that although 61 percent of American workers envision a flexible transition to retirement, only 25 percent said their employers offer the opportunity to shift from full-time to part-time work as they phase into retirement.

So, it’ll probably be up to you to figure out how to work part-time in retirement. Maybe you can take the initiative to come up with a plan through your current employer. If not, try securing a part-time job somewhere else, perhaps by setting up shop as a consultant or a project-based contractor.

7. Learn new things or pursue your passions. Those passions could be ones you had when you were much younger but somehow stopped doing over the years, like playing an instrument or painting. Retirement is a great time to discover new passions, too, by taking classes or finding one-on-one instruction.

Check out local colleges for adult education and continuing education classes, too. These courses could teach you new skills or just provide knowledge for the pure joy of it.

8. Keep a schedule, but not like the one you had before you retired. I came across one study from Taiwan that said the key to a happy retirement isn’t how much free time you have, it’s how you manage whatever free time you have.

 The authors didn’t recommend blocking out every minute of every day, but instead advised setting goals and priorities for your free time and then evaluating whether they were appropriate and achievable. Then, they said, organize your activities on a daily or weekly basis — just not hourly. Having some kind of schedule prevents you from getting bored, depressed or lonely.

 

9. See your children and grandchildren if you have any. Hinden said his favorite tip from his retirement do’s and don’ts list was: Do find ways to be friends with your children and grandchildren, even though they are very busy. You need them, Hinden added, and, whether they realize it or not, they need you.

Incidentally, just retiring itself is likely to make you happier. A study by Utah State and George Mason University professors found that retirement immediately tends to improve both happiness and health, and that the effects of this life satisfaction are long-lasting.

And here’s one last piece of good news: Most retirees say they are happy because of all the things retirement has given them the opportunity to do. In fact, a MassMutual Financial Group survey found that retirement just might pay you a happiness “bonus.” In its poll, 82 percent of retirees said retirement gave them an opportunity to enjoy themselves and about two-thirds said they now had a chance to have new experiences and feel fulfilled.

Finally, my reading list — here are some Next Avenue articles and some books that could boost your chances of a satisfying retirement:


Next Avenue ‘Happy Retirement’ Articles

These Next Avenue articles have more details about the nine keys to a happy retirement:

 

The Secret to a Happier, Healthier Life: Just Retire

The 4 Traits of the Happiest Retirees

Time Management Is Crucial to a Happy Retirement

 The Secrets of How to Retire Happy

 Retirement Just May Pay You a ‘Happiness Bonus’

 How Couples Can Make Smart Retirement Decisions Together

 4 Reasons Expat Retirees Are Happier Than You Are

 The One Retirement Book You Need to Read


8 Books for a Happy Retirement

Happy Retirement: The Psychology of Reinvention by Professor Kenneth S. Shultz

How to Retire With Enough Money by Teresa Ghilarducci

The 5 Years Before You Retire by Emily Guy Birken

The Retirement Maze by Rob Pascale

The Couples’ Retirement Puzzle by Roberta K. Taylor and Dorian Mintzer

The Encore Career Handbook by Marci Alboher

Second-Act Careers by Nancy Collamer

Getting the Job You Want After 50 for Dummies by Kerry Hannon

 

© Twin Cities Public Television - 2017. All rights reserved.

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The Surprising Secrets of Successful Retirees

What 'The Retiree Next Door' author learned by surveying them

By Richard Eisenberg for Next Avenue

Credit: Thinkstock

If you’re in your 40s, 50s or early 60s, odds are you’d like to know what it takes to have a happy and successful retirement. To find out, a few authors — such as Wes Moss (You Can Retire Sooner Than You Think) and Bob Lowry (Living a Satisfying Retirement) — have surveyed retirees.

And now Marc Diana, the Los-Angeles-based CEO of the new personal-finance site MoneyTips.com site, has surveyed 510 retirees to learn the magic elixir. He published the findings in the free e-book, The Retiree Next Door: Successful Seniors’ Surprising Secrets (you can download it at the MoneyTips site).

I spoke with Diana, a serial entrepreneur who also founded Savings.com, to find out what those surprising secrets were and what pre-retirees should do now if they want to join the club. I confess that the results did, indeed, surprise me. (You can pose your own questions at The Retiree Next Door one-hour tweet jam Tuesday November 18 at 11 a.m. PT; 2 p.m. ET; I’ll be participating.)

Highlights from my conversation with Diana:

Next Avenue: What made you decide to do this survey?

Diana: We did a survey of boomers four months ago and found that half of boomers were not satisfied with their finances and a third had no plan. We thought that was a recipe for disaster for a large body of Americans, so we said: ‘Let’s reach some successful retirees and see how they are doing and how did they get there so we can help boomers approaching retirement.’

What did the successful retirees have in common?

They’re living within their means and they had a savings plan for retirement. About a quarter of them calculated how much they’d need to retire when they were in their 40s; another 21 percent did it in their 50s.

And how much were they saving each year before they retired?

Nearly 60 percent saved between 6 and 20 percent a year.

What surprised you in the survey results?

44 percent said they were comfortably retired with less than $500,000 in assets. That surprised me quite a bit. I’m in my 40s and that wouldn’t cut it for me.

What does this tell you?

It hits on one of the ingredients in the root of what I uncovered through the survey, which is that successful does not mean ‘I’ve got gobs of money and houses all over the place and cars.’ People who came to terms with what they wanted out of life and managed to figure how to budget and live within that were happily retired.

Are the successful retirees frugal?

No. They’ve been prudent, not frugal. Only 35 percent call themselves frugal; the rest said they spend enough to live comfortably. And 67 percent live on less than a $100,000 a year; 23 percent are in the 25 to 50 grand bucket.

The key is that two-thirds of them have been on some kind of monthly budget and stuck to it.

Did they use financial advisers to plan for retirement?

About 62 percent consulted advisers, at least some of the time, through their career to make investment decisions.

Was having a financial adviser useful for them?

Without a doubt. Engaging an adviser made them more likely to have a budget and to live within it.

What investment mistakes did the successful retirees regret making?

One big mistake they made was getting into the stock market too late or getting out of it too late. They tried to rifle-shot the market. And the other mistake they made was making bad real estate bets.

What keeps them up at night?

The fear of outliving their savings and incurring substantial health care costs. And twenty five percent are concerned about maintaining their standard of living. They worry that something might happen — like inflation or their lifespan increasing.

What are they doing to minimize the risk of running out of money?

More than half don’t have a car that’s newer than two years old. A lot own their homes outright. And they’re cutting back on extras, like travel and memberships.

I noticed that most of the successful retirees worked for large companies and in the public sector. They generally weren’t the self-employed ‘Millionaire Next Door’ types. What does that tell you?

That’s interesting because of what comes with being at those forms of employment. Things like matching retirement plan contributions are great because they push you into a style of saving. You lower your risk of not having a comfortable retirement by the sheer nature of working there.

Based on what the successful retirees said, what should people nearing retirement be doing so they can have successful retirements?

Number one: have an annual or monthly budget and stick to it. Number two: have a plan to retire. Number three: be disciplined as an investor. It’s very risky to make bets on the stock market or on real estate. If you’re disciplined, you can have a nice nest egg in retirement.

© Twin Cities Public Television - 2016. All rights reserved.



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