Wednesday, December 30, 2015

Bye Bye Pensions - Hello Personal Pensions and Work

The end of pensions.  - create your own because if you hope to rely on social security you'll be very disappointed.

How to create your own pension.  

Simple way - save money and then purchase an annuity.  Wait as long as you can  to begin collecting so the payout will be higher.  Because there is no way to know if the government will destroy the currency or ramp up inflation to the point your annuity check will be worthless is is another gamble you are taking just as if it were a stock market investment.

Creative way - start some type of business that pays cash with minimal overhead and is not dependent on government licenses.  Teaching is a good option if you have a skill or knowledge and maybe some credentials that back it up you can do it as long as you can talk and stand.  Depending on what you teach even standing may not be necessary.  I have taught computer classes and even in that class I had to move around so most teaching seems to require at least some level of mobility.  If you have or develop such a limitation, well then hopefully you can find accommodations to make it work.
Teaching tennis - this is the one I am familiar with and the biggest problem with teaching tennis as you age is the risk of infirmity or disability.  I suggest you learn to limit your movement and teach groups as you get older and less able to handle the task of a teaching pro.  The need to move around the court for advanced private lessons usually is what takes a pro out of that category and moves them into management or group instruction.  I am assuming you are reading this since you're not in management so to get started or to get business from referrals your best bet is to work for a county tennis program or at a club as an assistant pro.  From there you can develop and reputation and following.  An advantage of doing this when you are retired is that you can work a flexible schedule that younger people may not be willing to do.

Another suggestion - ramp up your social security payments by waiting as long as possible to collect. If you are starting early in your career of tennis teaching then make sure you are reporting a good amount of income or you will see little accumulated earnings to get a good payout.  All of this of course assumes that the program will be solvent by the time you will collect.  Don't assume that though you will probably get a check it is likely the check will be barely enough to pay for some of your expenses.

Final suggestion - learn to live on less.  Much less.  Any dollar you don't have to spend is a dollar you don't have to earn.  Doing this early in your career will also allow you to work less and save more. That is the approach I have taken and it worked to give me a much longer career of teaching on the court than many of my contemporaries.


 

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