Friday, July 25, 2008

Make Money from Hobbies in Early Retirement

Early Retirees in New Ventures, Mostly for Fun by Brent Bowers shares an interesting phenomenon with early retirees. They are turning their hobbies into micro businesses, and adding profit to the fun. The article provides examples of two early retirees that turned their hobbies in photography and decorative mobile building into businesses that have made from $1000 to $4000 in a year.

Of course, $4000 a year is not enough on which to live. These early retirees are counting on other sources for living expenses. However, it is a low risk way to start a business. For them, it's also a bonus to get paid for something they love to do.

Finally, the article recommends consulting an account or attorney when converting a hobby into a business, in order to understand the latest tax rules and regulations. I would also add checking with one's insurance agent. In my case, I found out that personal coverages that exist for the hobby, may not extend to the business part.

For more on Reaping the Rewards , check back every Friday for a new segment.

This is not financial, tax, business or retirement advice. Please consult a professional advisor.

Copyright © 2008 Achievement Catalyst, LLC

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