Retiring? Time to look for a part-time gig

 retirement guide kevin howard

In the 1980s, Kevin Howard started buying residences, repairing them up, and leasing them out. That rental income let him leave his task at 55.

NEW YORK (Cash Magazine)

Do you imagine leaving full-time work behind at 60, and even faster? In CASH’s 2014 Retirement Guide, you’ll discover the 5 vital policies for managing very early retirement– policies constructed on difficult lessons from current years and brand-new thinking about investing.

Guideline 5: A second paycheck is available in useful

No concern, selecting up a part-time job after you walk away from 9-to-5 work will alleviate the pressure on your finances. Which’s the plan for numerous: Three-quarters of workers think they will have a job in retirement, a May Gallup survey discovered.

It’s not practically the cash. In a study of 44- to 70-year-olds by the second-act job site, a third of those who wish to work part-time mentioned enjoyment as the reason.

But reality does not match expectations. In EBRI’s 2013 Retirement Confidence Study, just 25 % of retired people report ever having actually worked for pay after calling it an occupation.

Would-be senior citizens are often unrealistic about landing significant part-time work, says Colorado planner Leitz. Lining up a 15- to 20-hour-a-week task sounds excellent, but there aren’t too lots of stimulating and well-paying tasks in professional fields that allow that. “Flexibility is great for you, however not truly for employers,” states Leitz.

What to do

Choose jobs, not a job. Even when firms don’t desire a 20-hour-a-week senior staffer, they still could have high-level work that has to get done. Set yourself approximately be the consultant they employ, says Dick Dawson of CareerCurve, a coaching firm for 55-plus employees.

Related: Will you have enough to retire?

Start where you’re known: your old workplace and your network. Keep going to industry events and look for specialists who do similar work and might hear of tasks they cannot take. Visit and, which match companies with freelancers in fields such as marketing, composing, and design.

Make your pastime pay. Working doesn’t need to imply sticking with the exact same occupation. Prior to retiring at 58, Susan Morgan Hoth was a high school teacher in Richmond who invested summertimes painting silk headscarfs. As she approached retirement, she began offering her scarves online through sites like Etsy.

Her business nets about $4,000 a year, enough to let Hoth, now 64, splurge more. “It assists me pay for things I would not spend cash on otherwise,” she states.

What’s your dream retirement?

Similarly, you could find that a part-time retail task that matches your interests– in a golf store, say, or a health-food shop– is all you should pad your income. Price cuts on eco-friendlies costs or natural granola are an included reward.

Don’t get too comfortable. A lot can happen over 40 years, from a financial pinch to dullness. So even if you don’t work out of eviction, keep yourself employable. That suggests maintaining professional qualifications, following modifications in your market, and remaining in touch with former colleagues.

Think way ahead. Many very early retirees plant the seeds for a second paycheck well before retirement. One means to do that is by investing in rental realty. Hearts & & Wallets found that 27 % of those who successfully retired before 62 went that route.

Related: Can you retire early?

Rental earnings is what made it possible for Kevin Howard, 57, to leave his full-time task as a procurement manager for Boeing 2 years ago. In the mid-1980s he began rehabbing and leasing homes. The residential properties– three in Seattle, where he lives, and one in his previous hometown of Houston– provide half his yearly $140,000 income (the rest is a pension and savings).

Still, “I do not want to fix plumbing as I get older,” he says. He plans to offer his Houston residence soon and the others within 5 years.

Now, instead of dealing with aerospace jobs, Howard is learning to play the standing bass. He’s clocked 14,000 miles in 26 states on his bike, and takes his VW Vanagon camper to blues celebrations.

“I worked for 30 years,” Howard states. “I want an additional 30 years doing the things I desire to do.”

EVEN MORE: New rules for very early retirement

Rule 1: Early retired people: Do not fear losing your medical insurance
Policy 2: Getting ready to retire? Save more, invest less
Policy 3: Utilize your house to increase retirement savings
Guideline 4: Get the first decade of retirement right

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Reduce your savings target
To retire early, you’ll need to generate overwhelming multiples of your earnings (based upon making $100,000). Working part-time up until you get full Social Security softens the blow.
Age Work part-time Retire fully
55 12.25 18
60 11.5 17
62 11 16
NOTES: Replace 70 % to 75 % of earnings in retirement; distribution rates of 3.25 % to 4.5 % relying on age and part-time earnings; 4 % genuine returns; Social Safety at complete old age; part-time work replacing 30 % of pre-retirement income up until age 65. SOURCE: Charles Farrell, Northstar Financial investment Advisors

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