MOTIVATION Spin Straw Into Gold Turn With Retirement Jobs

Speaking to Bloomberg Television in July. Whitney Tilson, a chief investment officer of TIAA-CREF’s Kaeo Investment Group. He didn’t “want to be out of the market as a retiree,”. “What I would like to do is have retirement-income gains and employment-income gains. and I’d want to make sure they go hand in hand.”

Tilson is not alone. 23 percent of pre-retirees expect motivation to work full-time by the prospect of financial gain in retirement. According to a new survey by the Employee Benefit Research Institute. And 38 percent said the desire to work a part-time job at some point is what convinces them to retire early. The research advises are motivation prospect of earning a paycheck for something. Other than generating income for financial institutions or selling financial products.

Today, these reasons are paying off. Baby boomers are shifting to careers like data analysis, marketing, and tech to earn money in retirement. And contrary to their popular perception as waste-throwers. Companies are turning to senior professionals for both research and personnel. Many businesses for instance hire for their expertise in statistics and financial planning. In an early 2009 study. Career services firm CareerCorps found a high demand for financial planners with both quantitative and qualitative. One-third of financial planning firms were found to offer part-time employment to retirees. Including unpaid positions.

Now, tech companies are also adding “retirement jobs,” with some offering workers voluntary positions to test apps, write software and develop new technologies. Robert Yeh, an associate professor at the Stanford Graduate School of Business. Recently led a study that found one-third of tech startups allow employees to sign on as “senior engineers.” a position offered by 37 percent of the largest tech companies, according to Google.

Tech companies see retirement jobs as more fulfilling and necessary for a secure life.  Because the average company now hires 1,000 people every month. According to research by Social Finance. They’re likely hiring for hundreds of different positions. That requires the kind of flexibility that older employees can bring to a company. For example, someone like Valerie Rosen, founder, and CEO of PilotWorks, a web development company has not considered hiring anyone older. Even to work in a sales role.

Also to financial incentives, retirement jobs provide structure. Diverse portfolios and financial assets can be readily transferred to a financial planner. And when younger employees start working for a financial advisor. They are often allowed to use their savings and make adjustments to their financial accounts.

In the case of employees at Newton Investment Management (NIM), retirement jobs give career experts a valuable skill to enhance. Financial advisors are working at startups with limited staff, few resources, and outdated systems.

“I want to do it. I want to give back. I want to do something that is a catalyst for pursuing my passions,” said Sandy Cumminan, an account manager at NIM, a $45 billion investment firm, who works with clients like Fortune 500 companies to structure their retirement portfolios.

When asked about the advantages of retiring early, the finance team at NIM pointed out the potential for moving into “a more strategic and inspirational role.” Plus, it could be great for a financial advisor to return to the role with a different mindset than when they left in their mid-20s.

“We don’t like what we call ‘push-pull’ folks who are constantly asking for something and trying to convince you to buy something,” said Michael Berkowitz, a financial advisor who also serves on the organization’s senior leadership team. “The brain wants to be appreciated and be listened to, so if you ask someone to be silent or to refrain from saying what they think you want to hear, the brain isn’t going to like that, especially if you have a firm position or a bias.”

If you don’t have a company to fall back on, you’re still in a financial pinch. One of the problems many retirees face is a lack of income. Financial advisers suggest that an average retirement plan—like a 401(k) or an individual retirement account (IRA)—should have a target retirement account balance of $400,000 to ensure financial security. In reality, however, most employees in the United States don’t take full advantage of their retirement plans. In a recent study of 20 million retirement plans, the Employee Benefit Research Institute found that more than two-thirds of employees don’t have a 401(k) or an IRA that matches a percentage of their salary.

That’s partly because it can be hard to have a money mindset when you’re retired. However, if you are ready to make the switch into a retirement job and your company has financial incentives, taking the plunge could work. In the case of the twenty employees at Stanford Advisors, the company offers up to $80,000 a year to help employees contribute. If those twenty people matched $100 per month, the benefit would add up.

“If we have a company that’s engaged with the individual, that’s a way for them to be engaged,” said Joseph Marino, founder, and CEO of Stanford Advisors.

According to a study by Automatic Investing, a financial firm that offers free automated investment programs, 63 percent of individuals make at least one investment mistake in their 401(k). For some, it might be making investments based on price or value or a low number of years until retirement. According to the study, a mistake that may hurt you financially is not having an emergency fund.

When starting a new financial job, you should make a plan to use some of your 401(k) or an IRA for retirement expenses, says Whitney Fishburne, the managing partner of Social Capital, a venture fund focused on social entrepreneurship and online businesses. By taking your savings out of an investment fund, you can get the same benefits of that fund, but without the money going into that investment, she added.

“It’s about motivation. Motivation is everything,” Lisa Hinds said”, the managing director of Boston Private Wealth and an advisor with the Northborough-based financial services firm. “Everyone has the desire and the need to do something, but it has to be an opportunity that motivates you.”

While many people seek financial advisors for financial guidance. Millennials may be the most eager to make that change. One in three millennials wants to retire early. According to a survey conducted by Principal Financial Group.