National Retirement Security Week - Hustler Daily Thumbs Up - Oct 15

Hello fellow Encore Hustlers

Did you know that the week of October 20 - 26 was National Retirement Security Week?

Back in 2006 U.S. Senators Gordon Smith and Kent Conrad introduced a resolution to raise awareness of the importance of retirement savings and to encourage contributing toward retirement plans.

Check out this story from the Houston Chronicle about why Americans need to save more toward retirement.  However the article doesn't provide much advice what to do if you are like many Americans who cannot afford to save for retirement.  What's the point of having access to a 401k or an IRA if your budget has no room to fund a retirement plan.  Unfortunately too many of us no cushion and we are stuck between a rock and a hard place.

The article would have been better if it suggested turning to side hustles to earn extra cash that could be earmarked for retirement savings.  It also did not consider working part time in retirement to close the gap between expenses and retirement savings and Social Security benefits.

Mr EH agrees that it can be a bitter pill but it's better to face the facts and start your side hustle as soon as possible.

Cheers,
Mr EH

Launch your hustle in 30 days - Hustler Daily Thumbs Up - October 6

Hello fellow Encore Hustlers

Sometimes you need a shove or a kick in the pants to get your hustle started.

One way is to commit to giving yourself a 30 day deadline to launch.  Read this story from Sault Ste. Marie, Ontario about an upcoming seminar How to Launch Your Own Side Hustle, hosted by StartUP Sault. The goal of the seminar is provide you the tools to launch your business idea in a month.

For those of you who are not familiar with the Sault (pronounced Soo), it is a small city along the shore of Lake Superior and across from the Michigan Upper Peninsula and for much of the 20th century it was a major steel making center.  The area has a rugged beauty, short summers and long, brutal winters.  It was also, for a few years, the home of Mr EH in the 80's, when he was a research metallurgist at Algoma Steel.

Residents of the Soo tend to be a hardy and hard working bunch and Mr EH noted that many of his co-workers maintained side hustles including:

• renting out a log splitter
• stringing racquets 
• organizing golf tournaments
• providing industrial safety training
• raising tropical fish

It has been over 30 since Mr EH has lived in the Soo but it pleasant to hear that the entrepreneurial spirit lives on the city in such grass-root organizations as StartUp Sault, which is provides support and networking opportunities for new businesses.

The upcoming seminar is lead by Nevin Buconjic the founder of StartUp Sault and a serial entrepreneur in his own right.  During the seminar Nevin will discuss his latest side business that he started in one week for less than $250.

If you cannot attend seminar you can also read his two books Starting Your Own Business:An Entrepreneur's Guide and 25 Money-Making Businesses You Can Start in Your Spare Time, both are available on Amazon.

Cheers,
Mr. EH

The Hustle High Five - Hustler News of the Week - April 7

Hello fellow hustlers.

Did you know that April is officially Financial Literacy Month?  Any coincidence that it is also the same month we file taxes in the US?  Mmm - I think not.

So if you have completed filing why not reward yourself with checking out this weeks stories.  And if you are still procrastinating then checking out these stories is perfect for putting off writing that check to the IRS.

1)   Here is a sobering article that reveals the nearly half of older Americans have no retirement savings.  There are many reasons why this happens but this fact forecasts a crisis.  An EncoreHustle might not be the solution but it might make a significant difference in how you live.  Read this story about the good news of seniors who want to work longer.  Also check out this article released by Benefits Canada about the looming retirement crisis in Canada.

2)   If you continue to work after retiring then you should be aware of the potential tax consequences and also the investment decisions that you should consider.  Check out this story from the London Times about UK pensioners who have to pay more taxes because they continue working.  Also read this Globe and Mail (Canada) article that discusses the complexities of retirement planning for working seniors.

3)   One aspect of seniors and finances is that more older women are continuing to work or entering the workforce to fund their retirements and to cover unexpected expenses. Read this story about why this is happening.

4)   Working for the public as a teacher or police officer has the benefit of a pension upon retirement.  But this benefit has some caveats that can penalize the retiree if they return to work in the public sector.  Read these two stories about how labor shortages are making legislators reconsider this policy.  The first story concerns teachers in South Carolina and the second story is about Boston police officers.  Also read this cautionary tale about a retired police chief who stopped receiving his pension when he joint the St. Louis County Council.

5)   To finish up this weeks post I would like to share two stories about people who continue to work in retirement.  The first is about six retirees who share their second career stories and the second is about Texas' oldest banker who continues to work at age 95.

You may have noted that I am a week behind on posting this article.  Sorry about that but last week I was in Seattle visiting my daughters and grandkids so putting this all together was a bit delayed.

But the good news that I will be posting another High Five in a couple of days.

As always, enjoy the hustle.

Mr. EH

The Hustle High Five - Hustler News of the Week - February 8

Hello Hustlers.

Thanks for starting your weekend with reading this post.  I enjoyed spending my afternoon rounding up these stories, hope you find them interesting.

1)   Here is a nice piece from the Minnesota StarTribune that profiles several side hustlers, including retired nurse Geri Stroud, 77, who supplements her Social Security by playing her keyboard in mini-concerts at senior living residences, making up to $100 an hour playing the oldies.

2)   This is a somber story from Dallas that describes the difficulty that older workers encounter when trying to find a new job after a late career layoff.  The statistics are depressing but the story does offer sound advice and profiles the good work of Dallas's The Senior Source and its Elder Financial Safety Center that has helped thousands of +50 year old workers find new jobs.

3)   The law is still catching up with the ramifications of seniors continuing to work past what is considered the official retirement age.  One gotcha is that if you are receiving Social Security benefits and continuing to work for an employer that offers a Health Savings Account (HSA), then you are not allowed to contribute to the plan.  Well, read about Ohio Congressman Bob Latta who is introducing a piece of legislation, the Stop Penalizing Working Seniors Act, that will give seniors access to HSA accounts.

4)   Transitioning to an encore career can be years in the making.  This is a good column from Forbes Making the Most Of An Encore Career that can jumpstart your planning.

5)   As I have highlighted in previous posts, working beyond retirement age is not just a US phenomena.  Here is story from the UK Mirror about a survey of British workers that indicates one in 10 plan to work full-time and one in four hope to continue working part-time.

Well that's  it for this week.  

As always, Happy Hustling.

The Hustle High 5 - Hustler News for the Week - January 4

Welcome to a new Encore Hustler feature.

At the end of every week I will endeavor to provide you links to interesting stories related to EncoreHustlers.

I hope you enjoy reading these articles as much as I did.

Happy clicking!

1)   Great article from Fast Company that outlines "Your 12-month guide to building your side hustle this year".

2)   Motley Fool makes the case of using side hustles to build your retirement nest egg in The Disturbing Reason 22% of Americans Don't Have Retirement Savings.

3)   Smokey Mountain News (North Carolina) profiles those who need multiple side hustles just to make ends meet in Working 9 to 5 (plus nights and weekends).

4)   One of the benefits of side hustling is being able to turn passion into profits.  The Cleveland.com website has as a story of Cleveland orchestra members pursue passions business interests with-side-hustles.

5)   Finally check out this long read article from The Atlantic on How to Lose Tens of Thousands of Dollars on Amazon.  It is a cautionary tale of people who were looking to make easy money as Amazon FBA Sellers.

I'm just talkin' 'bout my g-g-g-generation

What is (or will be) your Encore Hustle style?

The Aristotelian side of my nature loves creating classifications and making organizational systems.   In the case of Encore Hustles I propose they can be broadly classified under the 4G's.

1) Grinder

2) Grower

3) Guru

4) Gigger

Grinder
A Grinder would be someone who works a regular "job", just like they did before leaping past 65.  A Grinder will make an hourly wage and will receive a W-2.  For many people a Grinder job would be ideal.  It could be full or part time and maybe include benefits, such as healthcare and 401k.  Grinder jobs could range from being a barista at Starbucks, a seasonal employee or even continuing with the same job they had before reaching 65.

Grower
A Grower is someone whose Encore Hustle is starting a business.  A Grower could transition from being an employee to a boss by essentially doing what they were doing pre-retirement but they get to use their skills and experience to put any profits into their own pocket.  A Grower could also buy a franchise, monetize a hobby or strike out on a new venture that has been longtime dream. Of course a Grower will experience the stress of starting and running a business.  It could involve creating business plans, raising start up capital, marketing, and dealing with accountancy and taxes.  Being a Grower would not necessarily be right for everyone but if you always had a hankering to be the Boss now is the time to seize the moment.

Guru
A Guru is someone who making teaching, editing, freelance writing, mentoring, consulting, coaching, training or tutoring their Encore Hustle.  You might be a retired teacher who has become an on-line tutor or substitute teacher.  A Guru could also be an engineer with a lifetime of accumulated knowledge who hires out to clients or teaches as an adjunct at a local college. A Guru could also be tour guide who gets to share the history of their area and get about to flaunt their knowledge of local trivia.  

Gigger
A Gigger takes advantage of the internet and the sharing economy to cobble together a string of Encore Hustles.  A Gigger could drive for Uber, pet sit, rent out a room with Airbnb, be an online juror, flip garage sale finds on eBay or serve wine at an event thru a Craigslist ad. Sure the work for a Gigger can be sporadic and pay will swing wildly but it will have flexible hours and if the work is not to your liking then just drop it and find another gig. You can think of Gigging as the ADHD of Encore Hustles.  But Gigging also gives you time to hone your skills and build your brand.

If you wanted to present the above classifications as Venn Diagrams it would be clear that many Encore Hustles within the 4G's would intersect.  For example, a tutor (Guru) could be a Gigger when they find students through Tutor.com or they could be Grower when they start their own tutoring business.  And there is nothing to stop a Grinder, maybe working a cash resister at Walmart, picking us a few extra bucks being a Gigger by being a petsitter, or setting up their own Esty shop to be a Grower.  This is one of the exciting aspects of Encore Hustles - the possibilities and permutations are only limited by your imagination. 

Let me know what your Encore Hustle is and we can feature it on a future postings.

Where's our Jetpacks?

In the scrub desert of eastern Washington near where I work there is a laboratory that measures gravitational waves, essentially the ripples of space and time, when black holes collide.  Much like these distortions of the fabric of universe, the Baby Boom continues to be a seismic event that sends ripples through our society and the economy.

As I mentioned in my first post, an estimated 10,000 Americans turn 65 every day and people over 65 now outnumber teens for the first time since 1948.  By 2029 the +65 cohort will number over 71 million or about 20% of the population.  And yet as the ranks of seniors swell recent polls asking if people plan to continue working, either full or part-time, past 65 have resulted in a responses ranging from 48 to 74%.  Which means that if you are not planning on working past 65 I am sure you know someone who does.

So what happened to the traditional retirement model that our parents enjoyed a generation ago?  Where did the secure retirement go that allowed for lazy days of golf, fishing and bridge that could be enjoyed after a lifetime of labor?  I am afraid that for most of us that idea has gone the way of the jetpacks that we were promised when we were growing up in the 60's.

I am sure we all experienced several of the following that resulted in the "new" retirement model:

• A shift from defined benefit plans (pensions) to defined contribution plans (the 401k). For example, in 2015 only 20% of the Fortune 500 companies offered pension plans down from 59% back in 1998.  The onus on retirement planning has been placed our shoulders and for many of us we have not been up the task.  We did not max our our contributions or understand the nature of risk while investing for the long term.
• We are living longer than our parents.  Advances in healthcare means that we are living about 10 years longer than our parents which means we increase the chances that we will outlive our savings.
• Wages have been stagnant for close to 40 years.  Real median wages have only risen 9% since 1979.  For comparison, real wages in the 25 years after the end of WWII rose 91%.
• Lifestyle inflation.  Our parents didn't have three gas guzzlers in the driveway of our McMansions.  Nuff said.
• Increased personnel debt has become a way of life.  For example, in 2016 the average household had credit credit debt of $6,184.  That is on top of the other debts: auto, student and mortgage.  You can't save for retirement if your are in hock to the bank and MasterCard.
• The rise in the cost of medical expenses and college tuition has been raising faster than inflation. Since 1978 college tuition has increased 1,120% (four times faster than the consumer price index).  Over the same period medical expenses have risen 601% while food has increased 244%.  Many of us are still paying for students loans taken out decades ago (not to mention the loans we co-signed for our children) and the burden of medical debt is a leading cause of personal bankruptcy. 
• We have become a "sandwich" generation with about 15% of middle-aged households providing financial support to both an aging parent and a child, siphoning money away from retirement savings.
• The restructuring of the American economy that shattered traditional industries resulting in many workers being fired from companies with whom they thought they would have lifetime employment.  This resulted in millions of workers having long term unemployment, a reduction in savings and for many employment in positions at lower wages and benefits.
• And let us not forget the Subprime Mortgage Crisis of 2007 and the subsequent Great Recession.  A recent poll has indicated that these events have left almost half of Boomer households significantly less prepared for retirement.

Ok, enough of that, sorry for being a Debbie Downer.  Now on the flip side, there numerous reasons embrace the "new" retirement and the Encore Hustle:

• We are living longer and overall we are healthier! The old model of retiring at 65 was started at a time when if you lived to 68 you were considered lucky.  So, in addition to advances in healthcare, we have come to realize that the continuance of work has huge health benefits.  It keeps us active and engaged.  It can strengthen our social network and stave off cognitive decline.
• We are a more educated workforce.  In 1950 only about 7% of the workforce had a college degree.  By 1990 this increased to about 24%. This education doesn't expire when we turn 65!  Put it work.
• The economy has shifted where the workforce is employed in manufacturing to one of services and knowledge based.  This benefits the older worker.
• Conversely since the number of workers in trades and crafts have declined there is a generational gap in this sector.  If you have these skills and don't mind grease under your fingernails there will always be a place for you.
• Current unemployment rates are low and many employers appreciate flexibility and work ethic of older worker.  In some cases companies are actively seeking out that sector of the workforce.
• The internet and the sharing economy has made it incredibly easy to network, search for work and start businesses.  Linkedin, Monster, eBay, Facebook, Payday, Alibaba, Uber, Airbnb, eLance, Craigslist etc are all household words that did not exist 15 years ago.

Sure we are not strapping on our jetpacks or booking vacations to the moon yet.  But we do have electric cars, solar energy and gene therapy.  I personally can't wait to see what the next 30 years will hold.  How about you?

Welcome To My Blog

Welcome to my first posting.  As you might have guessed this blog is dedicated to the 10,000 people that are retiring everyday.  Among those are the dreamers and schemers who have decided that retirement is only a pause before starting their encore hustle.

For myself I am, as they say at college, a Rising Senior.  As you can see from my profile I have 30 plus years as an engineer and I can see retirement on the horizon.  And although there are mornings when I wake up and wish I do not have to head to the office and I check my 401k more often than I should I really don't relish the idea of retirement.  I still still enjoy learning something new and being smarter when I leave the office than when I arrived.  However I am looking forward to the day when I can work on my own terms (hopefully a mix of work and travel) and this blog is one of the ways that I am preparing for that day.

There is something called the Baader-Meinfon phenomenon, alternately known as the recency illusion.  Sort of like when you buy a red car you notice how many other red cars are on the road.  In my case it is noticing people who are working well past what we like to call "retirement age".  For example I was recently flying with a regional carrier and I noticed that our flight attendant was well past 60.  I made a slight joke about how many years he has been on the job and I was surprised to learn that he was 64 and had only been on the job for a year.  It turns out he was previously a manager at a fast food restaurant and was recruited by the airline because of his exceptional customer service.  He told me that being a flight attendant was the best job he ever had and he would keep doing it as long as he could sling baggage into the overhead compartment.

I love meeting people who have these stories and this is what I want this blog to be about.  I want to share stories of people who are pursuing their encore hustle and provide resources to people who want to find and succeed at their hustle.  Hopefully this blog with grow and become the EH community with forums and resources.

Thanks for reading and I would love to hear about your EH.