These Retirees Decided To Launch a Business --- Five people open up about their finances and how they spend their time

 

“It is a myth that entrepreneurship is for the young. Later-in-life business owners are blurring the line between their working years and retirement.

 

The number of entrepreneurs between 55 and 64 years old who incorporated new businesses increased 22% over the past decade, compared with a 0.6% increase in total population, according to Kenan Fikri, a senior fellow at the public-policy-focused Economic Innovation Group.

 

Those who have done so said it can provide an outlet for the skills and experience they have accumulated, or a chance to try something new or finally call the shots.

 

Continuing to earn income, even on a part-time basis, is likely to mean withdrawing less from savings and preserving more for later in life or heirs.

 

Starting a business has always carried risks, and those magnify at older ages. Entrepreneurs might invest some or all of their savings into their enterprise and potentially put retirement security at risk, said Jane Veron, chief executive and co-founder of the Acceleration Project.

 

Small-business owners also need an exit plan, a task that is especially critical for older entrepreneurs with shorter timelines. "You want to make sure you get paid for the asset you've built," said Veron.

 

Margo Clayson, 68

 

Inkom, Idaho

 

Business: The Mighty Microgreen, nutrition and food

 

Annual personal spending: $40,000

 

Margo Clayson retired in her late 50s. After taking an online class that required her to write a business plan, she decided to unretire and launch the business for real.

 

For the past decade, Clayson has been running the Mighty Microgreen. The company sells kits people can use to plant broccoli, buckwheat, alfalfa, speckled peas and more in plastic trays, harvesting the greens within days to maximize their nutrient contents.

 

"People don't eat enough fresh fruits and vegetables to maintain their physical and mental health," said Clayson, a self-described health nut. She worries about rising rates of childhood obesity and diabetes.

 

When Clayson's four children were young, she taught at a Catholic school. After it closed, she worked at a large retailer, training workers to prevent accidents.

 

In her 50s, she worked as a nanny and took care of her twin granddaughters before they entered daycare.

 

In 2017, she retired and went back to college to work toward her degree. When asked to write the business plan, she was inspired by her experience growing microgreens for her family.

 

Clayson didn't finish her degree, but she got free consulting on her business from resources including the Idaho Women's Business Center.

 

Through an online marketplace, she found a web designer.

 

Her husband, Ron Clayson, 72, constructed a building for her supplies.

 

Clayson said her goal was never to maximize profit.

 

"My purpose is to get you to eat better," said Clayson, who typically works about 15 hours a week. "The money is secondary."

 

Until January, Ron worked as an insurance agent.

 

The $800 a month after taxes the Mighty Microgreen generates wasn't as important to their budget as it is now that they are living on $3,043 a month in Social Security, Clayson said.

 

They pay about $300 a month for gasoline, $150 for car insurance, $400 for groceries and $100 for food for their dog, cat, two rabbits and three chickens. Their property taxes run $2,500 a year, and they give 10% of their income to the Church of Jesus Christ of Latter-day Saints.

 

They pay $235 each in monthly Medicare premiums and deduct some of the $200 they spend on internet service and Margo's phone as business expenses.

 

They have no debt. Their $5,000 bank account and Ron's $60,000 401(k) are for emergencies.

 

They plan to sell their home because of the work it requires.

 

"We thought we would die here," said Clayson, who added that she and her husband aren't sure where they will go. Two of their children live in Florida, but she doesn't like the weather.

 

Rob Perry, 68

 

Warren, Vt.

 

Business: Shirt Happens, screen printing and embroidery

 

Annual personal spending: $80,000

 

Rob Perry moved to Vermont from the Boston area while working as a software marketing executive. After he retired at age 63, he quickly decided that doing projects around the house and going on hikes wasn't enough to fill the time.

 

"I'm not one of those people who can just sit around," he said.

 

He had flirted with the idea of buying a franchise for years, but a local opportunity caught his and his girlfriend's eye: a 30-year-old screen-printing and embroidery shop that had been battered by the pandemic.

 

They bought the business for $115,000, splitting the cost and securing $50,000 in loans. They renamed the business Shirt Happens.

 

The original plan was for the couple to handle the front office while two existing employees managed production. When those employees left, they had to learn how to screen-print and embroider themselves.

 

Today, Perry works a 40-hour week. He organizes inventory, reclaims screens and operates heavy manual and automatic presses to print tens of thousands of promotional shirts each year for customers including local breweries.

 

"There's a great sense of accomplishment in mastering a tangible craft," Perry said.

 

Perry has roughly $1.5 million saved for retirement. Between his more than $3,600 monthly Social Security benefit, investment drawdowns and the business, his total income last year reached $135,000. While rising rent and equipment upgrades mean the shop operates on tight margins, it still generates $50,000 to $60,000 in free cash flow a year. He personally spends about $80,000 a year.

 

Managing the company's expenses can be stressful. Upfront payments for blank garments often come due before major customers settle their invoices.

 

The stress comes with some flexibility. Because it is just the two of them working the shop most days, they have the ability to close up early on a good powder day at the local ski resort or take extended trips to Europe.

 

"If starting a business is something you want to do, it's never too late," Perry said.

 

Roger Smith, 58

 

Keller, Texas

 

Business: Back Nine Golf, indoor golf simulator

 

Annual personal spending: $190,000

 

Roger Smith decided to start a business when he was nearing retirement from his corporate career. He spent 35 years at an engineering and construction company, where he was a vice president.

 

As the S&P 500 crossed 6,000 in late 2024, he realized he could afford to retire. The long hours and stress left him wanting a change.

 

His hobbies, which include travel and golf, wouldn't replace the routine he thrives on. And after years of advising C-suite decision makers, he wanted to call the shots.

 

"I wanted to prove to myself that I could run my own business," said Smith. He felt he could earn a higher long-term return by investing in a business than in publicly traded stocks.

 

Smith settled on Back Nine Golf, an indoor golf-simulator franchise. It didn't require him to work full time because customers can use emailed codes to access the facility. He also felt comfortable with the financial risk because his $430,000 upfront investment -- consisting of the franchise's fee plus modifications to his store -- was less than 10% of his net worth.

 

Best of all, Back Nine allows him to work on his swing and talk golf. Smith's day typically starts at 6 a.m., when he checks the news over coffee and takes a walk. He often spends the rest of the morning at Back Nine, where he walks new customers through the technology, which provides performance metrics and access to simulations of famous courses, including Pebble Beach Golf Links.

 

Smith and his wife, DeAnna Smith, 62, often travel to see friends and relatives. They also visit their ranch near Austin, Texas. They have booked a cruise to Southeast Asia and are helping their daughter plan her wedding.

 

Their net worth is around $5.5 million, with $4 million in investment accounts, of which 70% is in stocks.

 

As the business nears its first anniversary in September, Smith said revenue exceeds expenses, including his $2,000 monthly salary and the couple's $1,250 health- and dental-insurance premiums. Smith said he hoped to raise his income to about $10,000 a month to recoup his $430,000 investment over the next couple of years. He said the business can beat the returns on stocks.

 

He also receives deferred compensation he saved while working. He plans to claim Social Security around 68, while DeAnna will likely start at 64.

 

The couple typically budgets about $17,000 a month, and so far has spent less. That includes $4,700 on housing, including a sub-3% mortgage, homeowners-association fees, utilities and property taxes; $1,150 for prescriptions, copays and deductibles; $1,500 for car insurance and gasoline; and $3,000 for essentials, including food. They also set aside about $2,600 for travel and entertainment, $1,400 for donations and $2,400 for income taxes.

 

Smith said he isn't sure whether to call himself retired because the term is a strange fit for someone who works 15 to 30 hours a week. "I guess I'm semiretired," he said.

 

Mike, 78, and Peggy Gibbs, 76

 

Pacific Grove, Calif.

 

Nonprofit: Pacific Grove Cares, community beautification and restoration

 

Annual personal spending: $110,400

 

To Mike and Peggy Gibbs, the word "retirement" implies leaving something behind. Instead, Mike and Peggy view this stage of life as a continuation of their work.

 

The Pacific Grove, Calif., couple -- married for 50 years -- see themselves as social entrepreneurs. They channel their decades of business experience to help solve community problems.

 

Mike, a former organizational psychologist, started a youth entrepreneurship camp with Peggy, a veteran development executive, when they were in their late 50s.

 

The program graduated thousands of students over nearly two decades, but the overhead of insurance, combined with disruptions from the pandemic, ultimately pushed them to wind it down.

 

In 2024, they launched their second venture: Pacific Grove Cares, a 501(c) (3) nonprofit. They wanted to revitalize local public spaces neglected because of municipal budget shortfalls. Peggy serves as the chief executive and founder, while Mike acts as the chief financial officer. They can be found planting trees, pulling weeds, painting flagpoles and picking up cigarette butts.

 

Fundraising requires building personal relationships, and that takes time. The couple work 30 to 40 hours a week apiece, alongside volunteers. It can be a challenge to find time for their other interests.

 

The couple draw no salary from Pacific Grove Cares. They own their 1,200-square-foot home outright, drive older vehicles and have about $2.2 million in retirement savings with roughly 60% in stocks. They have monthly expenses of about $9,200, with 65% of that budget allocated to taxes, insurance and charitable giving through a donor-advised fund. Being debt-free allows them to fund education accounts for their grandchildren and give to local charities.

 

They like to "wake up every morning and think about how we can try to leave our corner of the world better than we found it," Mike said.” [1]

 

1. These Retirees Decided To Launch a Business --- Five people open up about their finances and how they spend their time. Tergesen, Anne; Dagher, Veronica.  Wall Street Journal, Eastern edition; New York, N.Y.. 09 July 2026: A9.