{"id":7401,"date":"2019-03-24T07:45:23","date_gmt":"2019-03-24T11:45:23","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=7401"},"modified":"2019-03-24T07:45:33","modified_gmt":"2019-03-24T11:45:33","slug":"how-financial-advisers-can-lend-mid-life-entrepreneurs-a-hand","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=7401","title":{"rendered":"How Financial Advisers Can Lend Mid-Life Entrepreneurs a Hand"},"content":{"rendered":"\n

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Middle-aged clients who lose a job often turn to some form of entrepreneurship as the next phase of their career.<\/p>\n\n\n\n

Data suggests that entrepreneurship among individuals over age 50 is growing. Three in 10 entrepreneurs are over 50, which is an increase of 50% since 2007, according to a report published last year by the payroll firm Paychex<\/a>.<\/p>\n\n\n\n

Researchers from the Massachusetts Institute of Technology and Northwestern University found in a 2018 paper<\/a> based on U.S. Census Bureau data that the highest success rates in entrepreneurship are seen among business founders who are middle-aged and older, rather than younger business owners.<\/p>\n\n\n\n

Advisers can play an important role in helping clients set up a new business venture.<\/p>\n\n\n\n

“A financial adviser can really be the sounding board,” said Kerry Hannon, a work and jobs expert for AARP. <\/strong>“They can help a wannabe entrepreneur get their feet wet and lay the groundwork, in essence, before they make a big financial commitment.”<\/p>\n\n\n\n

Money is the biggest stumbling block to launching a successful business, so helping a client get financially fit enough to start a business and manage debts is perhaps the most important counsel advisers can provide, Ms. Hannon said.<\/strong> This includes helping them with budgeting, paying down or refinancing debt, and identifying ways to downsize, for example, as well as setting up a financial plan for the business.<\/p>\n\n\n\n

Read on <\/strong>Investment News <\/strong><\/a><\/p>\n\n\n\n

Locating capital<\/h3>\n\n\n\n

Another challenge for those starting a business is locating sources of potential capital, whether the funding comes from the client’s personal savings, grants or loans. Most entrepreneurs self-finance their startups, said Ms. Hannon, <\/strong>whose book about mid-life entrepreneurship, “Never Too Old To Get Rich,”<\/a> is coming out in June.<\/p>\n\n\n\n

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Most entrepreneurs self-finance their startups, said Ms. Hannon, whose book about mid-life entrepreneurship, “Never Too Old To Get Rich,”<\/a> is coming out in June.<\/p><\/blockquote>\n\n\n\n

Robert Falcon, a financial adviser who has helped set up several businesses \u2014 for himself and for clients \u2014 said advisers can direct clients to services such as LegalZoom that help a new business set up its proper legal entity (such as an S corporation or limited liability company, etc.) and then ships the documentation, all for a few hundred dollars.<\/p>\n\n\n\n

Advisers also can determine whether the business owner will be subject to any sort of licensing requirements in the state, said Mr. Falcon, founder of Falcon Wealth Managers.<\/p>\n\n\n\n

Ms. Hannon <\/strong>suggested that advisers can help clients put together a team of the professionals they will need, such as a lawyer and accountant. Advisers also can assist their clients in putting together an informal network or advisory board of other entrepreneurs in the community to connect with on a monthly basis to offer support and inspiration, discuss challenges, and set goals to hold each other accountable, she said.<\/p>\n\n\n\n

By Greg Iacurci<\/a><\/p>\n\n\n\n

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