Retirees Start New Businesses; Doing It Right

Business Plans Critical, Especially For Retirement Startups

By Susan Klopfer,

Author, speaker, blogger

“Sue” and “Betsy” develop their biz plan.

"I thought I left business and work and all of that snarly stuff - and now you want me to write down my business plans? To write down my goals? NOT!!"

Sue is a newly retired office manager turned blogger who wants to make a small business of what she is doing -- blogging about business.

She sees an eventual online bookstore, coaching and eBooks as her eventual dream. In fact, she would like to be wildly successful, now that she has the time and energy to help cover her retirement expenses. She only brings in a little over $700 through social security plus a small pension of $500, so how can she make this dream a reality?

Her friend, Betsy, believes they can work together and "come up with something creative that will make us some extra money." A little way into the process, Betsy is telling Sue they must first write some business goals and a business plan before actually starting ANY business.

Sue's reaction?

"Oh, dear. I just don't want to get soooo formal. I just want to have fun and make some extra retirement money."

So who is right? Plan (Betsy) or no plan (Sue)?

In a study of Harvard Business School MBA graduates from 1979, researchers found that ten years after graduation, the three percent who had written goals were making 10 times as much money as the other 97 percent combined.

Other studies over the years have produced similar findings. People who write down their goals are more successful. There is no reason these research findings would NOT apply to retiree businesses, as well.

Betsy wins. But, Sue could be a winner, too...

Business advisors, experienced entrepreneurs, bankers, and investors generally agree that you should develop a business plan before starting a business. Here is why: a plan helps you move forward, make decisions, and make your business successful.

However, not all business plans are equal and not every business needs the same level of detail. You might develop a simple straightforward plan before or as you start a business, and that might be enough for you. Start simple and then become more elaborate if needed - for example if you eventually decided to ask for a loan or needed to seek investors.

Consider a retired woman from New York who worked for a major communications company before retiring. Linda B. started her secondary financial retirement plan early by purchasing a small knitting machine to produce knitted headbands for skiers, complete with their company logos.

During her Norwegian childhood, she learned to knit traditional ski sweaters from her grandmother and actually started out knitting sweaters for several nearby Vermont skiers. The nature of imports changed in the U.S. and Linda found that she could not compete in price with similar types of sweaters coming into the U.S. from China. Because she started her business before her actual retirement, she had time to modify her existing business plan, finding a new, competitive product and was able to make needed, flexible adjustments.

"Where I grew up in Europe, we always had small businesses like this on the side. If there was an economic downturn, we had something to fall back on. I knew that my small business was perfect for adding to my retirement income, and would keep me connected. Having a flexible business plan, with goals, meant I could make this important switch, from sweaters to head band, and keep making money."

Linda also benefits from having a simple sales and expense forecast, a profit and loss report, so she can plan how to use and develop her resources. She might not need to create detailed cash flow, balance sheet, and business ratios. A simple plan is what she needs to keep going.

Linda started out with a mission statement, an easy market analysis (she used a telephone book to discover major ski shops that might stock her sweaters), and a break-even analysis, to provide an important head start to understanding her business. Her yarn cost was minimal and she actually found herself making more profits from the head bans than the sweaters.

Of course, not all startups are this simple. Most of us are not wealthy enough, especially going into retirement, to finance such expenditures as product development, packaging, retail fittings and signage, office equipment, websites, and sometimes months or even years of payroll before the sales start. Like Linda, we will not be working with bank loans or investors, both requiring more extensive business plan.

Betsy's suggestion to Sue for getting started is to develop a plan in stages that meet real business needs. She wants to add a basic sales and expense forecast, leading to profit and loss, as next phase. Adding business numbers will help predict business flow and match spending to income.

Here is what Betsy would like to see in their startup plan:

· Executive Summary

· Objectives

· Mission

· Keys to Success

· Company Summary

· Product Description

· Target Markets/Strategy to reach them

· Potential buyers, their needs, and how to reach them

· Competitive Edge

· Financial Plan with Projected Cash Flow

More sophisticated plans than Betsy's are based on the type of business, financing requirements, and business objective. Regardless, here are several more points to consider that come from  blogger Tim Berry at Bplans.com.

§ Even a one-person, small business benefits from written plans, because simply producing a plan is quite useful and valuable.

§ When others become involved, the need for having a written plan becomes even more important for communicating values, goals, strategies, and detailed implementation.

§ When you involve people outside the company, then you need to provide more background information and a written plan helps to describe company history and product or service features, for example.

§ A written market analysis helps spotlight opportunities that might not otherwise be obvious. For example, do you know why people buy from you? Who are your potential customers? How do you find them?

§ Do you sell on credit? This requires a more sophisticated plan than running a cash only business.

§ Do you do your taxes on a cash basis, or accrual basis? Hint:  If your business requires helps from a CPA, your business probably needs a more extensive business plan.

§ Need more money to make more money? Some banks will accept a less sophisticated business plan as long as the collateral looks good; a good bank wants to see a good plan. Professional investors will expect a business plan to provide solid proof including market data, competitive advantage, and management track records, along with comprehensive financial projections.

Tim offers even more ideas in his article A Simpler Plan for Startups.

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No matter how you cut it, a business plan is critical to your business, especially if you are retired, because your cash flow has more limitations than when you were working and bringing in more money.

Even at the early startup stage, and even if you can keep it in your head, a plan is very important. Betsy was able to convince Sue of this importance, and before they made any purchases such as business stationery, telephones, renting a location, they sat down together and did a simple business plan.

As it goes, their friendship survived, and so did their retirement business.

Retirement Planning; You, Me and the Department of Labor

You, Me and the Labor Department's Top 10 Ways To Prepare For Retirement

Financial security in retirement doesn’t just happen. It takes planning and commitment and, yes, money. Facts Fewer than half of Americans have calculated how much they need to save for retirement. In 2009, 13 percent of private industry workers with access to a defined contribution plan (such as a 401(k) plan) did not participate. The average American spends 20 years in retirement. Putting money away for retirement is a habit we can all live with. Remember… Saving Matters! If you are already retired, this is an important message for your children.  Susan's comment: I was happy to see my son give my four-year-old daughter a piggy bank. He got it free from his local bank and now that can start saving, together. Sometimes you don't always make the points that you want to make with your children, like when you are trying to give them financial advice, but other times (in moments like this), you do have an impact. So just keep trying. Like many retirees, I am very concerned about what will happen to our children and grandchildren, in face of the economic disaster we have been through and continue to go into.  1. Start saving, keep saving, and stick to your goals If you are already saving, whether for retirement or another goal, keep going! You know that saving is a rewarding habit. If you’re not saving, it’s time to get started. Start small if you have to and try to increase the amount you save each month. The sooner you start saving, the more time your money has to grow (see the chart below). Make saving for retirement a priority. Devise a plan, stick to it, and set goals. Remember, it’s never too early or too late to start saving. Susan: Fred and I opened a savings account last month. We are saving for our REAL retirement (don't worry, we will keep working) that we're planning for in September. We are saving for new computers, air tickets and some other needs for a trip to South America. We do not want to dig into retirement savings, and we still have the ability to earn income -- so we are doing it, and saving what we make.  2. Know your retirement needs Retirement is expensive. Experts estimate that you will need about 70 percent of your preretirement income – lower earners, 90 percent or more – to maintain your standard of living when you stop working. Take charge of your financial future. The key to a secure retirement is to plan ahead. Start by requesting Savings Fitness: A Guide to Your Financial Future and, for those near retirement, Taking the Mystery Out of Retirement Planning. Susan: So sayeth the government, but retirement does not have to be expensive. We paid off our house, cars and loans. The only monthly payments will be have to make, other than living expenses, amount to $350 -- and within a year, that will decrease do $100. We are downsizing, not buying "stuff" and eating healthy (and not as much as before). We are getting rid of our car and will be using public transportation and will live in a city where it is easy to get around. We are discovering walking! We have cut down on energy usage. All of this is fun and makes us feel like we are doing our duty, as well. We do not have to be energy and food gluttons, any more.

3. Contribute to your employer’s retirement savings plan

If your employer offers a retirement savings plan, such as a 401(k) plan, sign up and contribute all you can. Your taxes will be lower, your company may kick in more, and automatic deductions make it easy. Over time, compound interest and tax deferrals make a big difference in the amount you will accumulate. Find out about your plan. For example, how much would you need to contribute to get the full employer contribution and how long would you need to stay in the plan to get that money.

Susan: This paid off, especially in Fred's last job. We learned it is never too late.

4. Learn about your employer's pension plan

If your employer has a traditional pension plan, check to see if you are covered by the plan and understand how it works. Ask for an individual benefit statement to see what your benefit is worth. Before you change jobs, find out what will happen to your pension benefit. Learn what benefits you may have from a previous employer. Find out if you will be entitled to benefits from your spouse’s plan. For more information, request What You Should Know about Your Retirement Plan. (See below for more information.)

5. Consider basic investment principles

How you save can be as important as how much you save. Inflation and the type of investments you make play important roles in how much you’ll have saved at retirement. Know how your savings or pension plan is invested. Learn about your plan’s investment options and ask questions. Put your savings in different types of investments. By diversifying this way, you are more likely to reduce risk and improve return. Your investment mix may change over time depending on a number of factors such as your age, goals, and financial circumstances. Financial security and knowledge go hand in hand.

6. Don't touch your retirement savings

If you withdraw your retirement savings now, you’ll lose principal and interest and you may lose tax benefits or have to pay withdrawal penalties. If you change jobs, leave your savings invested in your current retirement plan, or roll them over to an IRA or your new employer’s plan. 7. Ask your employer to start a plan If your employer doesn’t offer a retirement plan, suggest that it start one. There are a number of retirement saving plan options available. Your employer may be able to set up a simplified plan that can help both you and your employer. For more information, request a copy of Choosing a Retirement Solution for Your Small Business. 8. Put money into an Individual Retirement Account You can put up to $5,000 a year into an Individual Retirement Account (IRA); you can contribute even more if you are 50 or older. You can also start with much less. IRAs also provide tax advantages. When you open an IRA, you have two options – a traditional IRA or a Roth IRA. The tax treatment of your contributions and withdrawals will depend on which option you select. Also, the after-tax value of your withdrawal will depend on inflation and the type of IRA you choose. IRAs can provide an easy way to save. You can set it up so that an amount is automatically deducted from your checking or savings account and deposited in the IRA. 9. Find out about your Social Security benefits

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Social Security pays benefits that are on average equal to about 40 percent of what you earned before retirement. You should receive a Social Security Statement each year that gives you an estimate of how much your benefit will be and when you can receive it. For more information, visit the Social Security Administration’s Web site or call 1.800.772.1213.

Susan: I have found the Social Security people to be nice, competent, helpful. They always answer our questions and help us in every way imaginable. Get to know them -- and be polite. Cranky old farts are no fun to work with, so don't be one.

10. Ask Questions

While these tips are meant to point you in the right direction, you’ll need more information. Read our publications listed below. Talk to your employer, your bank, your union, or a financial adviser. Ask questions and make sure you understand the answers. Get practical advice and act now.

To find out more, call the Employee Benefits Security Administration at 1.866.444.3272 and request the following brochures:

• Savings Fitness: A Guide to Your Money and Your Financial Future
• Taking The Mystery Out Of Retirement Planning
• What You Should Know About Your Retirement Plan
• Filing a Claim for Your Retirement Benefits
• Women and Retirement Savings
• Choosing a Retirement Solution for Your Small Business

The following Web sites can also be helpful: AARP American Savings Education Council Certified Financial Planner Board of Standards Consumer Federation of America The Investor’s Clearinghouse U.S. Securities and Exchange Commission

Don't worry if you are not a 1 percenter -- you can still retire on less money and have fun, too!

Retirement should not mean depression and loneliness.

Retirement planning means far more than addressing money issues, Jane C said. The retired nurse expected to feel happy upon retirement, but found herself "just miserable nearly every day," instead.

As a medical professional, Jane knew that her own loneliness, sadness, loss of sleep and other symptoms are often described as depression, so she set out to fix the problem by discovering a proactive approach to retirement - finding something worthwhile to do while adding to her retirement income base.

Jane talked about the first months of retirement, missing her nursing work more than she could have imagined. Most friends, it turned out, "were people I knew through my job and I did not see them much anymore.

"My husband kept telling me to relax and enjoy our new retired life together, but I just could not seem to do it. I kept asking myself, 'what's wrong with me?'"

Finding a job as a paid tutor for nursing students turned out to be the best decision Jane ever made, and now she reports she is "anything from being depressed."

IT IS INTERESTING how many working people dream of having time off, think about what they will do with new, extra hours and how they will enjoy their retirement to the fullest - while they are still employed.
Yet, too often retirement planning, both formal and informal, does not deal with the unanticipated void that often comes when people leave work to become retirees. "I will never make the 1 percenters - I don't even care about having that much money. I just wanted to be happy in retirement," Jane said.

(What is a 1 percenter? The Washington Post says, "Taken literally, the top 1 percent of American households that had a minimum income of $516,633 in 2010.)

A typical working person's community consists of the people with whom they mingle at the workplace and the work-related events they experience during most days. So why would it not be normal for a retired person to feel like Jane, with a sense of loss and displacement, when a major part of their identity suddenly disappears?

Loss of work often represents a tremendous void for many retired people, and one growing solution is finding new work, whether paid or unpaid. If you are in this predicament, start thinking about the skills you used in your work life and how to share them with others now that you are retired (or even beforehand).

Another suggestion, coming from retirement planning experts, is to think about something that you always wanted to do, and come up with a way to achieve it. Perhaps you always wanted to play the guitar, write books, be a travel writer, cook Greek food. Each of these activities, especially for a retired person, is achievable.

Here are three more ideas that may help:

1. If you are good at building things, why not volunteer with Habitat for Humanity or another community organization that requires specific skills?

One California volunteer, a retired engineer, found life can exist after work by giving his time as a CASA volunteer, even though this required he acquire a new set of skills.

"I will never forget the first time that I met Jeremiah. He was waiting anxiously for me by the stairs of his group home. When I walked through the door, his eyes just lit up and he got the biggest smile on his face. He said, "You're going to be my CASA, right?"

CASA volunteers help meet the emotional and physical safety needs of thousands of abused and neglected children across the country, advocating on behalf of their educational, mental health, medical, dental, and family/sibling visitation needs.

They become a consistent and caring adult and advocate for the child in a one-on-one relationship that forms between the volunteer and dependent child, often the only stable relationship the child has while in foster care. To work as a CASA volunteer, start asking around your community, at the courthouse, library and other such places to learn if there is a local program.

Alternatively, google CASA on the Internet and find where the closest program is located. You might end up starting your community's first such program.

2. If math or science or foreign languages (music, grammar, reading) are your strength, how about tutoring a student in need?

With classroom sizes approaching 30 to 40 students, it is impossible for teachers of nearly any subject to provide individual attention to students. As the shortage of qualified teachers rises, and the number of students per class grows, many students will undoubtedly be left behind.This is where a skilled retiree can bridge the learning gap, as a tutor - voluntarily or paid.

What are the greatest qualities that a tutor can possess? First, the ability to empathize with students' learning needs, says a retired teacher, Sara T. "No matter how difficult a student is to teach, tutors need to have the ability to communicate the love and passion they have for learning. Successful tutors understand, are patient and trustworthy."

High intelligence is not required, but tutors must know what it feels like to not understand a concept," says the retired Spanish teacher who now tutors for extra retirement money. She found her first students by simply placing an ad in various local community newspapers:

"I am accepting a few new students to tutor mathematics and reading comprehension on a private basis. I can also help with homework. Students receive one-on-one help to excel to their full potential. I have over 25 years of professional teaching experience and have worked with children having difficulty in a school setting. Will provide references. Call (Sara's phone number) to learn more."

Word of mouth, due to her positive reputation, keeps Sara so busy; she has a waiting list for her tutoring services.

Successful tutors have the ability to convey key information to students of all ages. Here are several online places to visit to learn more about tutoring opportunities via the Internet:

Tutor.vista.com (choose teaching jobs from home), ASAPtutor.com (choose job openings), Kaplan.com (careers at Kaplan), Elance.com (view list of jobs/market your services), Guru.com (list yourself as a freelancer); ParliamentTutors.com (choose careers), and tutor.com (choose button, Become a tutor.com tutor).

Even when a student is doing well, a tutor, on or off liine, must desire more and work even harder to bring out the very best - not only from their students but also from themselves.

If they lack these key qualities, their students will not have the desire or motivation to learn:

• Be prepared. Before the tutoring session begins, make it a goal to learn something for yourself. Do not rely on information you taught in the past, but seek out research results and latest information.
• Be positive. No matter how bad or how good a student's academic situation is, be positive. Let students know they can improve.
• Be Personal. Take your students' learning personally, showing passion by communicating your faith in them and your commitment to see them learn and grow.
• Stand committed. Every teacher has his or her blind spots, so commit yourself as a tutor to staying open minded. Remember there are other points of view and better methods of learning. Know that you can learn from any situation - even from your own students.
• Be reliable. Besides being on time for tutoring sessions, do not fake a caring attitude, and do not make promises that you cannot keep. Parents and students have expectations, and when you are able to confirm what you say, either verbally or non-verbally, you are known to be reliable.

3. If you were a great salesperson in your working days (or always thought you could have been), look for stores and other people (online and offline) that sell products or services that you like and find out if there is opportunity for you.

A good place to visit for possible items and services to represent is Clickbank.com. This online business site offers tens of thousands of products for its affiliates and vendors, with up to 75 percent in commissions.

Say that Gale loves training dogs and creates an e-book called "Dog Training 1,2,3" and a simple Web site to promote her e-book. She still needs a way to attract customers and discovers ClickBank to be a unique online retail environment for digital products like her e-book. ClickBank also has more than 100,000 active affiliate marketers ready to promote "Dog Training 1,2,3" in exchange for a commission.

Gale works with ClickBank to suggest the retail price and the affiliate commission she wants to pay for "Dog Training 1,2,3." She submits her e-book to ClickBank for approval and pays the one-time $49.95 activation fee.

"Dog Training 1,2,3" is now live in the ClickBank Marketplace and available for ClickBank affiliates to promote. ClickBank pays Gale and her affiliates automatically for each sale that occurs.
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FINALLY, IF YOU ARE retired, lonely and bored, retirement planning provides a great opportunity to learn about something you have always wanted to know but never had the time to investigate. This may include investigating a topic that will lead you back to work for money or as a volunteer, perhaps as a sales person or business owner.

Volunteering, seeking employment by others or becoming self-employed - any of these options can be a perfect match for most retirees.

In today's retirement world, a third of workers age 55 and older who were laid off in the past 12 months and did not find a job said they were considering starting their own business, according to a recent CareerBuilder.com survey.

Further, the age at which entrepreneurs are more innovative and willing to take risks apparently is on the rise. Data from the Kauffman Foundation shows the highest rate of entrepreneurship in America shifted to the 55-64 age group, with people over 55 almost twice as likely to found successful companies than those between 20 and 34, and individuals between the ages of 54 and 64 represented 22.9% of the entrepreneurs who launched businesses in 2010.

Jane C., who recently developed depression over feelings of loss and displacement upon retirement from nursing, says she now finds this state of mind no longer exists even if she has left her profession and friends.


"Sitting home with nothing to do - or even going on cruises or going to retirement financial planning workshops - is not the answer."

By going "back to work," in her case a paid tutoring position, she quickly changed from suffering depression to becoming a happier, active person.

"And this is what I wanted all along in my retirement - to have a wonderful, fulfilling rest of my life," Jane said.

Guest Blogger Asks -- Which Type of Expat Will You Be?

Which Type Of Expat Will You Be?

Guest Blogger, Scott Lilly

(Scott Lilly is an expat from the US, currently living in Paraguay.  You can read his tips and advice on moving overseas at MovingOverseasBook.com.  He has also written two books on moving overseas.) 

Scott Lilly: "Hanging out at Iguazu Falls, Brazil"

YOU HAVE MANY decisions to make when moving overseas.

Which country will you move to?  Do you want to live in a big city, small town, farm, or beach?  Will you buy, or rent?  What will your budget be?  Are you willing to learn a new language?

The most important thing to decide is which type of expat you'll be.

Are you going to be someone who sees living overseas as a burden, because you have no other choices?  Or will you be someone who views the move as a new stage of life, and a positive adventure?

The first type of expat - the "existers".

To them, life abroad isn't something they enjoy - it's something they "have to do", because they feel they don't have an alternative.

They moved overseas because they didn't like something about their home country - the taxes, the political situation, medical care, cost of living, inflation, etc.  Whatever the issue is, they felt they couldn't live in their home country anymore, and had to escape.

These expats are easy to identify, although they're difficult to encounter, because they rarely leave their homes.

They spend most of their time watching the news from their home country, or reading about it on the Internet.  Their focus is often on the past, and always on what is negative.  They believe life is a zero-sum game, and they feel that they're on the losing side.

Unfortunately, that's how they feel in their new country too.

Of the hundreds of expats, and potential expats who I've met, this attitude is fairly common.
If you meet one of these "existers", they're likely to be doing the following:

• Complaining about the situation back home - even though it's thousands of miles away, and they haven't been there in years.

• Complaining about how things in their current country are "wrong", because they aren't being done the way they used to be done back home.

• Speaking to the waiters and shopkeepers in English - since they've never bothered to learn the local language.

• Telling you all the places to avoid, because they're "unsafe" or will charge you higher "gringo prices".

• Ordering a meal they don't enjoy, just because it's cheap.

Just being around them is tiring.

Eventually, they tend to meet other people with the same attitudes.  They spend their time complaining to each other, and reinforcing each other's beliefs.

The second type of expats - the "enjoyers".

For this group of expats, a bad situation in their home country may be the main reason they moved abroad.  However, they focus on the positives - what they can do to have an enjoyable life now, and in the future.

When you meet them, they're more likely to be doing the following:

• Participating in an activity they enjoy - taking dance lessons, helping out at their church, attending a local event.

• Telling you about some great, local restaurant.

• Starting a business, like they always wanted to do.

• Learning, and speaking, the local language.

• Discovering places to visit, far off most tourist maps.

• Having coffee with their friends, both expats and locals.

Even if there are things they had to give up - their favorite food, TV show, or hobby - they've found something new to replace it.  They saw a problem, but made the effort to find a solution.

Which group will you be in?

"Most folks are about as happy as they make their minds up to be." - Abraham Lincoln

The most significant factor to determine how happy you'll be overseas isn't the government, the economy, the Immigration office, your neighbors, or anything else like that.

It's your attitude.

Will you decide to be miserable, and spend your time focusing on problems?  Or will you decide to be positive, and look at all the opportunities in your new country?

We're all at least a little bit of both groups.  But you need to decide where you'll focus your time and energy.  It's your choice.  If you want to be happy living overseas, first you need to decide to be happy.
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Scott Lilly is an expat from the US, currently living in Paraguay.  You can read his tips and advice on moving overseas at MovingOverseasBook.com.  He has also written two books on moving overseas.

Keeping Your Brain Alert, and Making Money From Tutoring -- Good Retirement Financial Plan

Summary: Retired teachers, accountants, business professionals, managers, secretaries, homemakers and so many others are earning extra retirement income by putting their skills and talents to use as tutors -- an idea that helps keep the brain active, as well. So how do they get started? How do they find students who will pay? (At the bottom of this post is a video on learning to learn. Please enjoy. sk)

Using one's special skills in retirement, as a tutor, pays off. It is a way to keep your brain active and make some added money. Tutoring can be part of a retirement financial plan.

DAVE, AN ENGINEER FOR 40 years, wants to do something interesting when he retires, and could use a little extra cash for his golf addiction. Sue, who was a legal secretary for 45 years, needs to add to her retirement income. She has no desire to be a store greeter, but wants to bring in extra cash using her skills and knowledge. Both know the importance of staying mentally active as they age.

Retired teachers, accountants, business professionals, managers, secretaries, homemakers and so many others are earning extra retirement income by putting their skills and talents to use as tutors -- an idea that appeals to both Dave and Sue. How hard is it to develop a tutoring business, market to potential students, and make this a money-making opportunity?

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First of all, if you are not a professional educator, don't be afraid to consider tutoring. Most of the time, a teacher's certification is not required to help others pick up new skills or knowledge, so there are many ways to develop a successful tutoring practice - from letting friends and others know that you are available to help students, to signing up with formal tutoring services on and off the Internet, such as tutor.com, or by offering informal tutoring training simply by advertising with flyers and other marketing methods.

Can you make money tutoring? Tutoring is what you make it; tutors may be paid at the time of service and he amount charged varies. If you work for a formal tutoring organization, you might be paid once or twice a month. Pay is usually based on the subjects tutored and the number of hours tutored. As an example given by one major online college tutoring organization, active Chemistry tutors earn anywhere from $800 to $1600 a month. If you work for a formal tutoring company, you may also receive bonuses, free training and even other incentives. If you are own your own, and not tutoring college-level students, the amount may be less. Yet, highly specialized and niched tutors can make far more, it just depends on the topic and the students.

Of course, tutoring services are not limited to professional teaching areas such as math, English and science. Do you know how to cook vegetarian meals? Bake and decorate wedding cakes?

Win at card games like bridge and poker?

Improvise jazz on a musical instrument?

Play shuffleboard or bowl a good game? Load software onto a computer or get rid of computer viruses? Use graphic or other specialty software?

Plenty of people would like to have these skills - including adult non-students - and many are willing to pay a tutor for this knowledge. All you need are some expertise and experience, and enough desire to go out and market your services.

If you are interested in tutoring for a formal tutoring organization, visit several online services and read their FAQs (frequently asked questions) to learn more about typical tutoring topics, qualifications, and more. For example, the following bulleted points explain what several professional online tutoring businesses serving students in the United States and Canada see as important qualifications:

• Live in and be eligible to work in either the US or Canada and have a valid Social Security or Social Insurance number

• Have a strong content knowledge in English, math, science, or social studies at the level you wish to tutor- for services covering elementary grade through first year college

• Be able to explain concepts to people of a variety of ages

• Currently be enrolled in or have graduated from an accredited US or Canadian College or University degree program

• Pass more than one subject exam during the application process

So if tutoring - formal or informal-still sounds like a possibility, here is a quick list of even more questions and ideas to help you get started, whether or not you plan to tutor in a formal or informal environment:

1. What skills, training, experiences do you have that others might need or enjoy having? Do you knit sweaters? Are you a certified Reiki Master? Do you like to coach? Do you play a mean game of bridge? Are you a native speaker of any language? This list goes on and on and once you get started, you will probably think of many things that you do well, activities that you could help others acquire.

2. Whom do you want to teach (or train) - children or adults? Business owners? Other retirees? Best to figure this out first. When you think about tutoring, you typically are considering the needs of children. However, adults often need help too - with both formal and informal activities - from math to planting a garden or learning how to remove viruses from their computers. Adults usually do not usually seek out special tutoring - you may have to find these customers and tantalize them through bulletin boards flyers and handouts, or even by giving free programs to groups and organizations and demonstrating your skills. Pass out flyers, business cards and have a drawing for one free lesson at this event.

3. Decide on what areas are best for your tutorial services. You may need to brush up on the subjects you feel you are most proficient in - and then you will probably have to practice before asking for payment. A clever way to learn what services are needed, is to ask around. Talk to ministers, business people, club members, friends and get their ideas. Then keep them informed about what you are doing, and they will often tell others, especially if you give them some business cards or flyers once you decide on what your will be offering as a tutor.

4. What are people typically charging for tutoring or classes? Ask around, check out bulletin boards and look at online resources such as Craig's List. Ask friends what they would consider paying for a cooking or gardening lesson. (Again, this is a good marketing technique because friends will often make referrals for your tutoring services.) If you are seeking formal tutoring opportunities, do some searching on the Internet. Also, look for tutoring classified ads in college and/or local newspapers. You do not want to set your price too high or too low-too high, and you will not find many students, too low and you might end up with too many takers.

5. Look on the Internet for clients. Many job forums and employment sites advertise for tutors. Search the Internet for tutoring; if you live in Albuquerque, New Mexico, Google: tutoring jobs Albuquerque, and see what comes up.

6. Another way to pick up formal tutoring work is to visit a school principle, teacher or professor and let them know that you are available. Bring a resume or something that shows you have expertise (degrees, certificates, and letters of recommendation) and they may be willing to make referrals. Do a good job, and this could be a constant source of clients.

7. If you are seeking informal tutoring experiences, visit local community centers. Many organizations already offer adult, adolescent and child education and will be interested to see how you can help. They might suggest that you teach a specific class for a small fee, and keep most or all of what you collect. Or they may have a special program, often in adult literacy, where you can fit in as an unpaid volunteer. Classes are good public relations for such organizations and so there are often many opportunities in this venue. Working first as a volunteer can also help a new tutor get needed experience before charging for services.

8. You may want to advertise in a local newspaper, a shopper or on the Internet, for both formal and information tutoring opportunities. If you are offering something really unique, a reporter might even write a feature article. If so, clip it out and make copies to use in your flyers and on your web page. Having your own web page could help, but word of mouth often attracts customers, along with specialized flyers detailing what you are offering and your expertise. Social media such as Facebook can help you get out the word, too. Do a good job, and your students (and those who initially refer your services) will be your best referral sources.

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9. Keep track of all of your expenses. You will need this information to offset added retirement income, in many cases. For more information on this important matter, visit your social security office and ask questions about retirement income requirements, or talk to your accountant.

WILL YOUR BRAIN benefit from tutoring? Of course, especially since 65 is no longer the onset of old age, but the beginning of middle age, and one critical key to staying this "young" is by keeping one's mind active and engaged, according to many aging specialists.

"Brains like problems. They like something to puzzle over and figure out. Brains love making new connections and learning. It keeps them healthy. Be sure to make your brain happy in retirement. Avoid routine and keep the brain supplied with new and challenging thoughts.

"From puzzles to learning new skills, more and more research shows that brain aging depends on constant intellectual stimulation for the brain," Dana Anspach of About.com Money Over 55 states. A retirement planner, Anspach serves as Chair of the Practitioner Peer Review Committee for the Retirement Management Journal, a publication issued by the Retirement Income Industry Association.

So...learning new things, teaching and staying smart -- all important components of tutoring -- are activities that retirement specialists like Anspach tell retirees to do, that is, if they want to stay young as long as they can.

Susan

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I found this video on learning to learn...and wanted to share it with you.

At Retirement Monologues – Where We Are Heading

“Lots of articles, seminars and “talks” are devoted to financial planning for retirement. So what about “spare time” and “usefulness” planning? Not a whole lot is mentioned about this part of the retirement equation.”

Not everyone desires to live a life of leisure like these television icons portrayed -- in fact, these women all continued to work in their profession of acting throughout their "golden" years.

So, I don’t know about you, but I am not interested in one more fact-filled article, important webinar or serious “talk” on saving money for my retirement. Or on investing, buying annuities, investing in bonds, or more. Yes – we will need a more money to help make our social security and other savings go further. Yes – we are paring down expenses in preparation for retiring, and will stick to our current pre-retirement budget for now.

But do you really think that a REALLY GREAT retirement depends solely on how much money you save beforehand, and on how much money you have to “live on” once retirement time arrives? Are you really planning to travel, go on ocean cruises and spend the rest of your time playing shuffleboard, going fishing, and babysitting grandchildren? Part of this sounds a little self-absorbed, and boring (except for the grandchildren). I do know that I would be driven absolutely silly if I did not have something important and fun to do besides going on trips, if I did not have something that keeps me engaged in the world, and something that adds extra money to our retirement household when I officially retire.

Lots of articles, seminars and “talks” are devoted to financial planning for retirement. Nevertheless, what about “spare time” and “usefulness” planning? Not a whole lot is mentioned about this part of the retirement equation. One can trim only so many expenditures, and save and invest only so much money before retirement arrives, and then when it finally happens. 


No matter how hard you try, you may not have a very good retirement “war chest.” But you still want your last years to have meaning, and to survive. This is the true focus of Retirement Monologues, helping people have the best retirement possible, financially, emotionally and actively. 

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Come'on.  Do we really NEED so much money to have a great retirement? Financial planning companies are great at scaring us to believe so. (I guess that one could be like a certain presidential candidate who builds car elevators for his seven houses, in his leisure time.) But I think there is more to life, and I am sure you do, too. Retirement years can provide the opportunity to find some real treasures in life, through activities that were never possible before.

So what can you do if you have already cut out as many expenses as possible from your retirement budget and you don’t have enough money coming in to handle your retirement expenses? Or enough money to do some added fun things, like take a trip or buy a new computer?

At the other end of the spectrum, perhaps your retirement budget is in tip-top shape, yet that does not keep you from wanting to earn more money as a retiree. Or from experiencing a new and more fulfilling life. 


But most of us will have spent nearly all of our lives working by the time we retire, and it can be tough not to have at least a small task, part-time job, etc., to devote time to during or even before retirement, since many years of self-worth and fulfillment have been tied up with professional work, leaving little time to explore the unknown.

Retirement Monologues will be delving into the expat/and related retirement issues (since our personal retirement plan includes moving to South America and living as expatriates) as well as looking at ideas that will help you  make money doing something interesting, before and during retirement. Here are some of the ideas we will investigate in the coming months, first some low-tech strategies:

How to be a tutor

There are many people who enjoy teaching and are in fact great teachers, but have had a career in something other than teaching because they could make more money. Have you always had a desire to teach? Do you want to earn some money during retirement while helping someone learn to speak English or another language? How to read? How to cook special foods? You can make a difference with tutoring during your retirement years and in some cases, make money as well. 


I know, for instance, a woman who holds weekly cooking classes, showing how to conjure up special meals with raw vegetables. People pay $25 for the cooking class and then have a fun dinner, eating their new foods together.

See if you can teach a class at your local YMCA, gym or youth center. Maybe you love working with kids and sports; why not coach a youth sports league? The money you make may not take your breath away, but you will be out and about staying active and healthy, and perhaps growing your retirement booty. We will find some people who are tutoring for fun and profit.

What about educating voters? Go out on the campaign trail and hand out brochures and information. As elections near, there are some opportunities to make some money going door to door for state and national candidates. Some organizations also hire people to go door to door. Being able to personally help out with a cause that you believe in is a great way to invest your time during retirement.


There are many possibilities in this category of teaching and tutoring -- and here is where we will start.

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How to Start a Business

Who says that entrepreneurs have to all be young, idealist college dropouts? Did you know that 55 to 64 year olds make up the age group with the highest rate of growth in entrepreneurial activity? The reduced cost of starting a business online rather than renting out office space and setting up a physical store front, can make the difference you need as a retiree-entrepreneur. 


We are going to speak with some folks who do just this – they are building a website business for their current money-making venture and planning ahead for retirement. The key is to start planning before retirement, and building a large following of customers and clients. The opportunities are endless -- from selling online stuff, from animal treats to zen products -- or perhaps selling services, from coaching to reading tea leaves. So many possibilities to explore!

How to Work with a Family Member

Is there a family member who already owns a business and who could use some extra help? What about spending time with them AND making some money to boot? Does your daughter need extra help at the law office? Does your hairdresser son need an extra hand? Is someone in the family selling vitamins and other such products? Could you be their new sales person? Why not see if you have any family members that own their own businesses, work from home, etc., and would be grateful for your assistance. You might not make as much money as you would doing the equivalent job somewhere else but the positive is that you will be able to spend quality time with a family member while helping them succeed. We’ll be blogging about this.

Here are some more ideas that revolve around use of the Internet:

Create specialty eBooks. Once you create ebooks, with the right marketing strategies and knowledge of social media, they could sell for you on autopilot, through word of mouth and continue to earn for you. I do this myself with three eBooks that relate to diversity and civil rights and sell my eBooks via blogging and other means, I hope they will bring me some income for life. I can pass down my eBooks to my child, and he can use them to make money, too – or even write some of his own to add to the catalog. I will be sharing with you what I know about eBooks.

Create your own e-courses.  Have you attended a Webinar? Have you shot a video?  Do you know how to use graphics and sign-making software? These skills are not hard to learn and if you have a particular knowledge base or want to spend time learning new information about something you have always been interested in, it is not that hard to create courses that can keep on teaching for you and bringing in revenue. Again, this requires learning how to use effectively social media (facebook, twitter and more) and requires that you have a high level of skill in the topic you choose. We will be investigating this further and sharing with you.

Create a blog that matters. This is a topic close to my heart. I have five blogs that “matter” on the topics of retirement, diversity and civil rights history, and use them to help sell my ebooks, print books and to acquire speaking engagements. I also represent an affiliate who provides a course on how to develop blogs that matter. Some blogs offer so much valuable information to readers that they eventually grow a big enough audience to attract a company that wants to buy the blog outright. The key for bloggers is that the blog not be all about you, but about a topic of high interest to a broad audience, where a buyer (or the person who inherits your blog) could hire other experts in your industry to run it after you depart. We will be writing more about blogs that matter and how to make them work for you.

Create a Web-based service business and then sell it.  Sometimes, in the course of pursuing your writing career, you get an idea for a related business you could start. Build the business and then find a buyer. It happens – and we will further investigate this strategy.

So here is where we will be going for the next few months. I hope that you will join us. Please add you comments and ideas... Susan


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