Starting a business in retirement can be risky since you don’t have the luxury of time on your side to recover from large financial hits. To mitigate financial risk, it’s wise to consider starting a business that’s not very capital-intensive, such as consulting or digital services, said Mike Hennessy, CFA, CFP®, in this Next Avenue January 2020 article, "How to Manage Financial Risk When Starting a Business in Retirement." "You can do part-time consulting in your industry and selectively take on projects that appeal to you,” said Hennessy, founder and CEO of financial advisory firm Harbor Crest Wealth Advisors in Fort Lauderdale, Florida.
Hennessy and other financial experts shared five tips to reduce costs, taxes, and mistakes: 1. Get smart about startup capital; 2. Minimize your startup costs; 3. Avoid withdrawals from your retirement accounts; 4. Consult a professional regarding your income taxes; and 5. Devise an exit strategy.
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