Changing Course
For many of the self-employed, however, midlife becomes the time to start over and try something entirely different.
Marika and Howard Stone, co-authors of Too Young to Retire (Penguin, 2004), have become gurus for boomers looking for the dream job that will carry them through the second half of life.
The couple's book, a popular text in business start-up courses, suggests 101 jobs for "the open-minded" -- everything from a karaoke DJ ("turn your love for people and disco music into a career and party down") to a reunion organizer ("families and former classmates are pulling together once again, but not everyone has the time or talent to organize a reunion").
"This isn't a work of fiction; these are real jobs," Mr. Stone said. "Ask yourself what you have a passion for and then go for it."
Anyone wanting to start a business needs to start with a business plan, experts say.
"Great concepts can fail because of poor execution," said Mike Hernandez, a past president of the Dallas chapter of SCORE, a nonprofit group that works with the U.S. Small Business Administration. "A business plan spells out how to turn an idea into reality."
Mr. Hernandez said SCORE's volunteer corps of retired business executives can show prospective entrepreneurs how to write a plan.
"People often underestimate the money they'll need to get started," he said. "As a rule of thumb, I recommend putting up 20 percent to 30 percent of the cost. Lenders reviewing a business plan will expect that from you."
Mr. Fairbrother suggests turning to professionals for help with legal and tax issues. The National Association for the Self-Employed operates a hotline (1-800-232-6273) for members with technical questions.
When Connie Baird, 60, created a Dallas-area food brokerage three years ago, she relied on an attorney's advice that a corporation would be the best legal structure for her business.
She has also had an accountant handle her business taxes.
"If you don't know how to do something, hire an expert who does," she said.
Despite the challenges of self-employment, many 50-plus entrepreneurs say their only regret is that they didn't do it sooner.
"I may work more hours some weeks, but they're my hours," Ms. Taylor said. "I don't have to haul a briefcase through high-rises and garages anymore."
Health Insurance Costs Are a Shocker
The biggest surprise for many baby boomers who start their own businesses is the high cost of health insurance.
"Coming from corporate jobs where they've had employer-subsidized group coverage, many suffer sticker shock when they begin shopping for health insurance for themselves," said Gene Fairbrother, a consultant for the National Association for the Self-Employed.
Premiums for individual policies can easily exceed $500 a month, and that's assuming a pre-existing condition doesn't disqualify someone.
"The best solution is to get onto a working spouse's group policy," said Lynn Karoly, a senior economist with the RAND Corp. "Otherwise, it's catch as catch can."
Diane D'Agostino-Smith, who started a life-coaching consultancy out of her Rowlett home, bought an individual policy through AARP's "health care options" program and pays $540 a month. Before that, she purchased coverage through the National Association for the Self-Employed.
Bob and Cathy Dammeyer's 3-year-old frozen-drink distributorship spends more than $6,000 a month for coverage for the couple and their four full-time employees.
Source: The Dallas Morning News. Powered by Yellowbrix.
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