By Paul Bullock
You’ve worked your entire life to finally retire and live out your golden years stress free. But now that you’ve reached your goal, how are you going to spend your time?
With increased life expectancies and medical advancements, you potentially have 30-plus years to do all the things you want to do in retirement. And, while this may sound like a dream come true, for many, it can quickly turn into boredom, loneliness, and even depression. This is why many of my clients consider a second career in retirement.
Since I primarily serve university faculty members, my clients have many options in front of them, and I’ve found that the earlier they plan, the better their chances are of making their dreams a reality.
If you are considering a second career in retirement, here are three ways to tell if it’s a good choice for you:
You Enjoy What You Do
One of the most commonly suggested things to do in retirement is to find purpose in your new phase of life. But what do you do if you’ve already found purpose in your career? For many educators, it’s hard to step away from their careers because it has become such a meaningful and fulfilling part of their everyday lives.
One client of mine enjoyed the traveling, research, and education aspects of his position so much that he decided to continue consulting for the university and other organizations in retirement.
If you find that you truly love what you do, there is no rule that says you have to give it up just because you’ve reached retirement age. In fact, continuing to work after retirement can help you lead a purpose-driven life, which research shows improves your overall quality of life both mentally and physically. (1)
You’re Not Ready to Fully Retire
Adjusting to retirement is a big transition! Going from working 40-plus hours a week for 30-plus years to suddenly having all the time in the world is a shock to the system, to say the least. It takes time to adjust, so don’t feel pressured to rush into retirement all at once. If you’re not ready to fully retire, working part-time can be a great way to slowly transition into full retirement.
It is becoming increasingly popular for people to approach retirement in phases, slowly adjusting to reduced hours, part-time work, then eventually full retirement. Studies have shown that gradual retirement and a sense of control over your timeline can actually lead to increased levels of happiness among retirees. (2)
You Want to Diversify Your Income
Another reason to consider a second career after retirement is to improve your portfolio longevity and make your retirement funds last longer. This is because the money you earn from a second career will help diversify your retirement income sources.
The truth is, no matter what your net worth, your income will always be your greatest wealth-building tool. That’s why a solid income stream is great, but having multiple streams of income is better.
Diversified income streams act in much the same way that diversified investments do: They allow for less demand and stress on any one income source so if an unforeseen event were to occur, the remaining income streams can pick up the slack.
Continuing to earn active income in retirement will provide financial flexibility and diversification that will allow you to keep your retirement savings intact for longer. If you are worried about outliving your money in retirement, a second career could be the buffer you need to feel confident about your financial future.
Learn More About Your Retirement Options
There is no one-size-fits-all approach to retirement, so it’s important to give yourself plenty of time to plan ahead. Many of the faculty I’ve worked with don’t know all the options and opportunities they have to retire the way they want to and end up not making the most out of their golden years. At Wellington Investment Advisors, we can help you design the best retirement plan for your specific needs. To learn more about your options, schedule a no-obligation introductory meeting or reach out to me at paul@wellingtoninvestmentadvisors.com or by phone at (812) 333-0874.
Be sure to check out what some of our clients say about working with our team at Wellington Investment Advisors to learn more about how we can help you.
About Paul
Paul Bullock is CEO of Wellington Investment Advisors, an independent, boutique fiduciary firm serving pre-retirees and university faculty across Indiana. With over 32 years of financial experience, Paul is committed to building long-term relationships through thoughtful, personalized investment advice and guidance. He focuses on a disciplined tactical asset allocation approach to money management through a strong understanding of economic and market conditions and strives to build trust with clients by providing sound guidance. Paul understands the hard work his clients have put in to arrive at where they are today and wants to see them succeed in their goals for the future. Paul graduated from the University of Texas with an MBA, as well as a bachelor’s degree in finance, and has been dedicated to assisting clients with their financial needs ever since. When he is not working, Paul enjoys time with his family and is also an avid equestrian polo player who helps raise money for over 18 different charities through his playing. To learn more about Paul, connect with him on LinkedIn.
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