3 Reasons to Start a New Business During Retirement

3 Reasons to Start a New Business During Retirement

2 min read
Scott Smith

Scott Royal Smith is an asset protection attorney and long-time real estate investor. His law firm, Royal Legal Solutions, helps thousands of real estate investors and entrepreneurs in all 50 states protect more than $1.2 billion in assets. Since 2014, he has published over 1,000 posts and articles on BiggerPockets and has appeared on hundreds of podcasts.

Experience
Scott fell in love with real estate when his commercial property investment allowed him to graduate from Albany Law School debt-free. He immediately began practicing at the trial and appellate court with the district attorney, placing him in the top 1 percent of lawsuit attorneys in the county in terms of professional experiences. He also worked in private practice, suing insurance companies for denying valid claims (which is surprisingly common!).

After his friend lost $3 million in real estate from a single lawsuit, despite having ample insurance, Scott dedicated himself to educating real estate investors on the importance of affordable asset protection, specifically when it comes to folk knowledge and misconceptions that still exist in the investment and legal community. The solutions Scott recommends for his clients are the same ones he originally created for himself and has been refining on his mission to help people protect themselves from frivolous lawsuits.

Follow Scott as he deconstructs the litigation game and shows you how to free your time, protect your assets, and create wealth that lasts for generations.

Press
Scott regularly appears on shows with folks like Grant Cardone, BiggerPockets, Entrepreneurs on Fire, Wheelbarrow Profits, and his own real estate investing podcast. He frequently interviews industry experts on his Facebook and YouTube accounts and has published thousands of posts and articles on BiggerPockets and his blog for real estate investors.

Education
Scott graduated from Albany Law in 2014.

Accreditations
He has passed both the Texas and New York bar exams.

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There are many compelling reasons to operate a small business in retirement. It’s a great use of your time, a productive way to keep your mind sharp, and a gateway to financial opportunity.

Going from working every day to doing nothing may sound appealing, but in reality, it turns out to be a shock for most people. For someone who has worked their entire life, the adjustment is often too harsh.

Whether on track for financial independence and early retirement or exiting the workforce around age 65, retirement just might feel like having nothing to do. Many of our clients solve the “too much time” problem with a small business, one that has the benefit of added income.

So, aside from giving you something to do to fill the time, let’s talk about three top reasons to consider starting a business in retirement.

Reason #1: Keep Your Mind Sharp

Having a small business is also a great thing to occupy your mind. Focusing the mind on a healthy and positive routine can prevent it from wandering toward more destructive patterns.

For example, some individuals are tempted to spend indulgently in early retirement. Often, this is a byproduct of simple boredom. This boredom can be eradicated entirely by operating a small business based on a hobby or talent.

man in nature holding up SLR camera with telephoto lens

Reason #2: Mitigate Financial Risks

With your basic needs covered, retirement is an ideal time to experiment with how you invest and generate long-term income. Operating a small business is one great way to engage in both activities at once.

Related: The Simple Math of Early Retirement With Real Estate [With Real-Life Example!]

One common question investors have is how to get started. It’s simple: Identify an idea, service, or product (whether your own or someone else’s) that resonates with you. Some investors who want to start small will capitalize on a hobby, like the investor we know who creates fishing lures and sells them to his fellow fishermen.

Understand that there are ways to determine how much risk you will tolerate, and operate within those margins. It’s OK, and even recommended, to know going into any kind of investment how much you’re willing to risk and under what circumstances.

fisherman standing on log near lake casting fishing pole in forest setting

Related: How Life Coaching has Helped Improve My Business and Life

Reason #3: Generate Extra Income

A little extra money is one obvious reason to keep a business going in retirement. But it is true that a little more income can contribute substantially to your quality of life. What that looks like will be a little bit different for everyone, but for most of us, it’s some variation of freedom.

The Bottom Line

Starting a new business may not be a part of your retirement plan. But it’s never too late to start something new. Just make sure you get the help you need from legal and tax professionals. We advise our own clients on these matters often.

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What’s your plan upon retiring? How will you fill your days, and will you aim to continue actively producing income?

Comment below.