Page 95 - INC Magazine-November 2018

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Growing Late Bloomersrowing Late Bloomers

How to start something new late in your career—and still protect your retirement. By Kathy Kristof

should have plenty of Group, a Midwestern
money to sustain their wealth-management
current lifestyle. firm. “You have to be
Glink had also sold ready to live off zero
her interest in a previ- income for a couple
ous business, the of years.”
publisher of Medicare
NewsGroup. Because
this money was an h
unexpected bonus, be ready to adapt
rather than something
she was counting on to Even if you have a
finance her retirement, perfect business plan,
she felt comfortable expect that your num-
dedicating it to the new bers will change. About
venture. “The question a year ago, for exam-
I asked myself was: ple, Glink realized that
If this fails and I lose all her company needed
this money, am I still more money to hire
fine?” Glink recalls. seasoned salespeople
“The answer was yes. It and develop its prod-
wasn’t like, if I lost this, ucts. Adjusting to
I was never going to be those realities is nor-
able to retire.” mal—but you need
to keep close track
of how quickly you’re
h burning through cash,
and when you need to
Have a plan start replenishing it.
Thinking about starting a business later You don’t necessarily (And give yourself
in your career? The statistics can be need a formal business enough time to do so:
off-putting: Some 20 percent of small busi- h plan—the type required Bank loans can take
nesses fail within their first year, according to get outside financ- months to secure, and
Know your numbers
to the Small Business Administration, ing—at the outset. But lining up venture capi-
and only about a third survive 10 years If you’re approaching you do need a clear tal can take longer.)
or past age 50, check idea of what your Glink started talking to
or more. In most cases, that means you on your retirement
may be facing financial failure just as readiness first. product is; what it will angel investors, and
cost to produce; why
eventually completed
you’re ready to stop working. Vanguard, Fidelity people would want to two rounds of outside
“You have to know your own money Investments, Kiplinger, buy it; and whether funding. “I’m running a
and have your own financial security, or you and TIAA all offer they’d be willing to pay company called Best
are taking an unnecessary risk,” says Ilyce web-based calculators enough to make the Money Moves. If I didn’t
that can give you a
Glink, a friend and fellow personal finance quick snapshot of your business profitable in know what the best
journalist. Glink was 51 when she started financial situation. a reasonable period money moves were for
of time. You also need
us,” she quips, “what
Best Money Moves, a financial-advice Glink and her to know how you are would that say about
employee benefit company based in husband, Sam, have going to support your- our business?”
Glencoe, Illinois, and she knew whatever been saving 20 to 25 self and your business
she did to launch her new business had to percent of their income in the interim, which KAThY KrISTof, author
since they started
not derail her family’s retirement prospects. working, so they have could last several years. of Investing 101, is an
But as a serial entrepreneur, who’d previ- “If you’re expecting award-winning financial
substantial 401(k) this company to create
ously started a communications agency and assets. They’ve largely a financial windfall in writer and journalist.
a media company, Glink had an idea of what paid off their home, the first year or two,
to expect in terms of startup costs and pay- and they get regular you have to adjust your
offs—and how to avoid draining her retire- income from rental expectations,” says
properties, so they
ment savings. So if you’re thinking about Ross Polking, lead
starting something new, follow her example. adviser with the Foster

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