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NextAvenue: How to Manage Financial Risk When Starting a Business in Retirement Thumbnail

NextAvenue: How to Manage Financial Risk When Starting a Business in Retirement

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.

Next Avenue is public media’s first and only national journalism service for America’s booming older population. Their daily content delivers vital ideas, context, and perspectives on issues that matter most as we age. Their mission is to meet the needs and unleash the potential of older Americans through the power of media.

Next Avenue has served over 40 million people on its site and millions more through their platforms and partnerships. Every day, they invite readers to consider what is next, what lies just ahead, and what will be revealed in their lives. By exploring questions big and small, they spark action — 95 percent of readers take an action after reading their stories — and open up a world of possibilities. Next Avenue is produced by Twin Cities PBS (TPT) for a national audience. Their journalists are based around the country, so they are able to uncover stories and voices from everywhere.