Retirees Continue to Work, Open Lucrative Practice

11th Jul 2018

Close up of manufacturing plant

While the age to start receiving social security is 66 years old, according to the National Academy of Social Insurance, more retirees than ever are continuing to work. Nowadays, there isn’t a standard retirement age – in fact, retirees are embarking on second careers or even starting their own companies. Abby Donnelly, founder of The Leadership & Legacy Group, who advises retiring executives on how to transition to their next phase of life, told Kiplinger there is no route to careers post-retirement. Some people choose to do what they did before, and some chose to do something new.

A recently retired professional decided to use his expertise and longtime experience to launch a consulting business. He and a colleague, who also had just retired, signed a 5-year contract with their former employer to consult on international projects to build manufacturing plants. Both of the men have enough in pensions and other savings to support their current cash flow needs.

In their new consulting practice, both men will each earn $125,000. The men decided to open a retirement plan that will help them save in taxes and build wealth. The majority of this money will be used to fund a cash balance plan that will shelter about 75% of their earnings for at least the next five years.

This is a great second act for these two retirees!

Dedicated DB@ DedicatedDB

3 Retirement Planning Blunders That May Cost You a Fortune via @motleyfool #retirementplanning #moneymistakeshttps://t.co/fBUAThuESZ

9:44 PM 24 January 2020

Dedicated DB@ DedicatedDB

The Top 10 Mistakes That Keep Women Entrepreneurs From Scaling to $1 Million via @entrepreneur #womeninbusinesshttps://t.co/Nw8k8Hq4T9

8:40 PM 24 January 2020

Dedicated DB@ DedicatedDB

When Does It Make Sense to Quit Your Corporate Job & Become an Independent Consultant? #smallbusinesshttps://t.co/5r647zhSi1

5:43 PM 24 January 2020

Dedicated DB@ DedicatedDB

4 Ways the SECURE Act Impacts Your Retirement Planning Now via @forbes @BarryGlassman #SECUREActhttps://t.co/2xlyvUEHAP

4:23 PM 24 January 2020

Dedicated DB@ DedicatedDB

Entrepreneurs Should Consider Doing These 3 Things Before Building a Company With an Exit Strategy via @inchttps://t.co/MIQyaJHg5A

1:16 AM 24 January 2020

Dedicated DB@ DedicatedDB

What are the key differences between Defined Benefit vs. Defined Contribution plans? The favorable tax savings of D… https://t.co/qc4B2wvy7c

12:13 AM 24 January 2020

Estimate contribution and deduction with our DB calculator Try it now