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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