How to Turn a Hobby Into Retirement Income

Two Methods:Find a New Career After RetirementTurn the Dream Into Reality

Retirees looking to boost their bank accounts or those wanting to give back to the community may be able to do both with a hobby they already enjoy. Retirees can often turn their life-long passions into retirement careers. Whether they love arts and crafts or enjoy working with young people, they can find ways to turn a hobby into retirement income. All it takes is a dream and a plan.

Method 1
Find a New Career After Retirement

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    Examine talents and hobbies in order to discover the best retirement career path.
    • The best options revolve around the activities a retiree already enjoys. All those projects they couldn't wait to get to when they retired are prime candidates for producing retirement income.
    • Hobbies such as knitting, painting, poetry writing, woodworking, gardening and even traveling are good examples of potential retirement careers. For example, seniors who love to travel could turn those travel adventures into a career as a travel writer or tour guide.
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    Transform volunteer work into jobs for retirees.
    • Seniors who have been volunteering with a local non-profit can find ways to turn their passions into a business. For example, youth mentoring skills may lead to a summer leadership program for teenagers.
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    Turn previous career skills into a new retirement venture.
    • Jobs for retirees often stem from the technology, marketing, communication and sales skills developed during the working years. For example, a retiree could combine a passion for food with well-honed writing skills to start an income-producing blog or website.

Method 2
Turn the Dream Into Reality

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    Research the viability of the business idea.
    • Before jumping into retirement careers, investigate the competition, the costs involved in starting the business and any legal requirements for operating the business.
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    Create a business plan to guide the process of starting a new career after retirement.
    • A business plan acts as a road map, clarifying the expenses associated with starting and running the business and keeping the entrepreneur focused on the steps necessary to make the business work.
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    Decide whether the business can be run from home or if leasing or purchasing property would be better. A retiree can probably produce knitted products from home but would need to rent or buy property to run a sports camp for kids.
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    Develop a budget for the new business.
    • Take into consideration the costs of raw materials, office or real estate expenses, product pricing and the desired income level.
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    Secure funding to turn a hobby in retirement income.
    • Many retirees first tap into their personal resources to start their retirement careers.
    • If the business requires substantial start-up funds, grants and loans may be available for small business owners.

Tips

  • If possible, consult with a non-profit or government agency that helps people start small businesses. These organizations can help with business plan writing, permitting and funding. In the United States, SCORE helps entrepreneurs. In the United Kingdom, the Business Link is the government resource for small businesses.

Warnings

  • Don't forget about taxes. Businesses may need to apply for sales or use tax permits. Also, factor personal income tax obligations into the budget.
  • Inquire about permits and fees from local, state and national government agencies. In some areas, even a small at-home craft business requires a permit.

Article Info

Categories: Retirement