A surprising number of Canada’s new jobs in 2013 – 25% – were self-employment positions, according to a report by advisor.ca. A full one-third of self-employed people in Canada are over 65. Why the increase? Advisor.ca speculates that it is because of improved confidence in the economy. This confidence means that more people are empowered to make the move from worker to business owner, both because they have a better chance of being successful and their own funds are more secure.
Starting a business at retirement age
Nobody likes giving up having an income, even if it means full retirement. Seniors also like to stay busy and active. Starting a business can help you stay busy and generate income in addition to retirement funds. It can also afford tax benefits that can be helpful, including being able to write off portions of utilities and other household expenses if the business is home-based.
Seniors have built up a lifetime of expertise in their fields and can do very well acting as consultants in their niche. They also may have an idea for a dream business completely different from what they are used to, such as a small retail store or a farm. In a 2012 study by CIBC world markets, 30 percent of startup business owners are over the age of 50, so you’re in good company if you are starting a business later in life.
Help to start your business
The Canadian government has a list of helpful resources on its website for seniors who are looking to start their own business. They include funding sources for micro loans, support for female entrepreneurs and more. While it is worthwhile to check out these programs, many of them require matching funds or that your business has a certain amount of capital to start out.
Getting the money you need
A reverse mortgage can help you get the necessary funds to start your business, which you can build on with additional loans if needed. Other forms of loans will require monthly payments, where a reverse mortgage does not. This can help you start up the business without needing to make payments during the crucial startup phase. Additionally, you can pay off a reverse mortgage whenever you like, although you do not have to until your home is sold.
Contact Horizon Equity today to find out more about reverse mortgages and the process for applying – and make your retirement business a reality.