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Working After Retirement: How to Make Retirement Income with a Franchise

January 17, 2020
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How many of us dream of retirement? We work most of our lives to pay our bills and hopefully retire with enough money to live comfortably in retirement. Statistics from a study about retirement in America by the Economic Policy Institute (EPI), however, are rather bleak. The report states that "Nearly half of families have no retirement account savings at all," and this includes IRA's and 401ks. As much as we try, it's hard to save money when you're doing everything you can to keep up with the cost of living. A CNBC report entitled "Here' How Much Money You Should Have Saved at Every Age" states that "Nearly 70% of adults have less than $1,000 in their savings accounts." The same report shows that one of the biggest financial mistakes many Americans believe they've made by the time they reach retirement age is not saving for retirement early enough. For this reason, many Americans are going back to work when they should be enjoying their "sunset years" after a life spent working hard.

Working After Retirement is an Option Many Americans Take

Franchise Ownership Might Be the Answer

Owning a franchise is a great way to take control of your future. It's also one of the easiest ways to get into business for yourself. With a franchise, you're buying a business that already has recognition. This means you are more likely to start making profits on a much shorter timetable than you would if you were starting a business and trying to build it from the ground up. That means starting a franchise when you're older, closer to retirement age, is a great way to set up a source of income for your retirement. Of course, the earlier you start the franchise, the more time you have to build an income for your retirement. Another advantage to owning a franchise, of course, is that you can approach franchise ownership as an investor. This means you can buy the franchise and put a staff in place to handle the day to day operations while you simply "oversee" the operation.

Starting a Franchise is a Great Way to Set Up a Source of Income for your Retirement
Another reason some retirees go back to work has nothing to do with money. Some people retire and find that they just don't like having "nothing to do." You wouldn't think this would be the case, but the American Association of Retired Persons (AARP) says that people go back to work after retirement to "stay engaged in the world." Investing in a franchise, or buying one, offers you choices. A franchise investor may have several franchises on hand with no intention of integrating with the day to day operations, while the franchise owner is likely planning to be a part of running the business on a day to day basis and actually working in the store. How much time you spend "working" your franchise after you retire is up to you, but the key is flexibility. With a franchise, whether you are simply investing or whether you are spending much of your time working, you have the flexibility to make it work for you. Either way, having one franchise can produce a nice retirement income, and having several can afford you the finances to do the things you've always wanted to do. Because you can choose your level of involvement with a franchise, you have the freedom to make choices.

Choose the Level of Involment You Want with You Franchise
Of course, you could start a business from scratch and rely on that business to carry over into retirement, but what makes the franchise a more attractive option is the brand recognition we spoke of earlier. A well-known franchise brand, coupled with a customer base that is already loyal to that brand, gives you an edge. With a new business, there's no guarantee it will ever produce income you can live comfortably before retirement, much less after you've retired. With a new business that has no customer base, you're likely to have to spend more time trying to build it up than you are enjoying your retirement. Wouldn't it be much nicer to start a franchise that isn't going to require all of your time?

There are so many franchise opportunities available, finding something of interest won't be a problem. You can invest in a franchise that you can run from home, without ever having to step foot in the physical location, or you can choose a franchise that will require at least some of your time. You can find a franchise in just about any industry you can think of, so finding something that fits the skill set you've developed over your lifetime won't be difficult. On the other hand, you may not have a preference about the industry. Maybe you just want to choose a franchise based on potential income. That's fine too.

There are Many Franchise Options for You to Choose From
Remember, though, the earlier you start thinking about a franchise, the more prepared you'll be for retirement. It does take less time to get a franchise running successfully than it does a business that has no customer base built in, but that doesn't mean we recommend starting it a year before retirement. Like any business, the long it is around, the more established it becomes. Even though you can start a franchise a little closer to retirement and still enjoy the benefits, getting a head start is always a good thing.

Here's something else you might not have thought about. You can fund your franchise using your retirement account. More and more people are doing this every day, allowing them to purchase a franchise without incurring any debt. If you have an existing 401k retirement account, there are two ways to take advantage of it. The first, of course, is to borrow from it. There are rules about how much you can borrow. You'll have to set up a regular re-payment plan like with any loan, but it's pretty easy to do. Your plan administrator can help you with this. The good news is, you can get your hands on this money without having to pay taxes.

You can Fund your Franchise Using your Retirement Account
There's another method that requires a bit more thought, but it's a great way to fund your franchise opportunity. It's called ROBS and it stands for "Rollovers as Business Startups." The ROBS approach doesn't have repayment requirements and the small limits associated with the 401(k) loan. It also affords the benefit of being used with an IRA account. Basically, with this approach, you can set up a new company and establish a retirement plan for that company, then you can transfer your existing retirement funds into the new plan. This allows you to place the investment of these funds wherever you want, including as an investment in your new company's stock.

Of course, it's always a good idea to consult with financial experts before you start tapping into your current retirement plan to set up new avenues and sources of income for your retirement. Owning a franchise, or even several, may be a great way to build a much more solid retirement plan, but always use caution when you tap into 401k plans.

Consult Financial Experts Before Using Your Retirement Fund
Are you looking to purchase a franchise for retirement income? All USA Franchises can help you find the perfect franchise opportunity for you. At All USA Franchises, we are on a mission to list all 3000 plus franchise opportunities in the U.S., making us the most complete franchise directory you will find anywhere. Best of all, we are completely FREE. We make it easy for you to find just the right franchise you're looking for. You can start your franchise search right now. Search by industry or by investment and narrow down your choices to the franchises that meet your criteria exact criteria.

Don't forget to visit our social media profiles, where we are always keeping you up to date with the newest franchise opportunities. There's no better way to stay on top of what's new in the industry and the best franchise opportunities available.

All USA Franchises provides you with an informative franchise blog full of helpful articles and tips for franchisees as well as the latest franchise news. We also provide the latest information about the franchise events you won't want to miss. In addition to the blog and events information, we bring you a valuable resource section that helps you locate franchise advisors, franchise brokers, franchise consultants, franchise developers, franchise lawyers, and franchise training services. These resources will save you time and can provide you with additional franchise help when you need it.

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