INDUSTRY INSIGHT
WEALTH MANAGEMENT
SPONSORED CONTENT
HOW YOUR HOBBY CAN HELP CONTRIBUTE TO YOUR RETIREMENT WELL-BEING
Provided by RBC Wealth Management and Eric A. Gregory, CFP ®
Do you paint with watercolors? Are you a competitive bridge player? Are you an expert in ballroom dance? If you have a hobby like these three examples that you’ ve pursued throughout your working years, you may have developed some unique talents. If you continue to exercise those skills during your retirement, you may find that they can fulfill you in new ways. Here’ s how:
( 1) Fill your time in retirement in meaningful ways – After several decades spent focusing on your career, leaving the professional world behind can be quite a change in your daily schedule. Suddenly having many free hours every day may make you yearn for something of significance to occupy them. As you might imagine, your favorite activities may fill that free time in a productive and enjoyable manner.
( 2) Maintain social relationships – During your working years, your job provides you with a regular source of social engagement. Apart from your normal conversations about business matters, you may enjoy coffee breaks, lunches and happy hours that help establish personal relationships with co-workers. In fact, you may spend almost as much time with these people as you do with your own family. But once you retire, your social network can shrink considerably, creating a void that could instead be filled by sharing your talents with individuals or groups with similar interests.
( 3) Stay active – It is no secret that staying physically and mentally active can benefit you in many ways, from helping you maintain a positive outlook on life to keeping you fit enough to chase after your grandchildren. When you retire, you do not want to sit around, risking declines in your health and your mental acuity. Pursuing your passion during retirement could help you keep your body and mind in good shape.
( 4) Earn a little extra money – Depending on your hobby or favorite activity, there may be opportunities in retirement to use those skills to earn money. For example, did you know cruise ships sometimes hire dance instructors and bridge teachers? Or if you are a painter, you could sell your work at art fairs. If you are a history or literature buff, you could teach classes in local community education programs, for example.
Earning money during retirement means you may be able to withdraw less from your IRA and 401( k) each year, potentially helping these accounts last longer. If you earn enough, you may even be able to delay starting Social Security, which will increase the predictable monthly payments you receive for the rest of your life after you begin taking benefits.
( Important caveats: Increases in your benefit stop at age 70, and once you start collecting Social Security, any earned income you receive may lower your benefit, at least until you reach your“ full” retirement age, which will likely be 66 or 67 if you have not already retired.)
In many ways, your career gives meaning to your life and even helps define who you are. So when you retire, you may find the need to“ repurpose” yourself – and an increased focus on the skills you have developed outside the professional world could help you do that.
This Industry Insight was written by Eric A. Gregory, CFP ®.
This article is provided by RBC Wealth Management on behalf of Eric A. Gregory, CFP ®, a Financial Advisor at RBC Wealth Management, and may not be exclusive to this publication. The information included in this article is not intended to be used as the primary basis for making investment decisions. RBC Wealth Management does not endorse this organization or publication. Consult your investment professional for additional information and guidance.
RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE / FINRA / SIPC
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