In February of 2016 the Broadbent Institute published a report entitled An Analysis of the Economic Circumstances of Canadian Seniors. Its findings were not pleasant.
- The value of retirement assets of those aged 55 to 64 without an employer pension who earned between $25,000 and $50,000 had a median value of only $250.
- For the same age group, those with incomes in the $50,000 to $100,000 range the asset value was only $21,000.
In April of 2015 the Schwartz Center for Economic Policy Analysis published a report entitled Are U.S. Workers Ready for Retirement? Its findings were equally discouraging.
- Of those at or near retirement age “54% of American have too little saved to produce an income stream in retirement. Annualizing $50,000 for a single male turning 65 in 2014 yields only $70 a week. A married couple in which both members turn 65 in 2014 would receive only $58 per week.”
Most people in our society do not have enough assets to live on comfortably in retirement.
In 2014, Robert Laura published an article in Forbes on the topic of network marketing and retirement. Reading between the lines one gets the impression that Laura was skeptical about network marketing until he conducted his research.
In the end, however, he concluded that “the entire industry is poised for explosive growth and can be one of the most significant solutions to America’s current retirement savings crisis.” Here are some of the points he raised.
- AARP estimates that half of all baby boomers are interested in starting a business, which has the makings of a massive trend.
- Boomers are shifting their focus from accumulating a giant nest egg to a desire to be part of something bigger and better – to have a positive effect on others – and working in retirement.
- Retirees are beginning to realize they need activities that keep them busy, relevant, in good health, and connected to others. In this context, the time, energy and cost to participate in these kinds of companies make them very appealing to large segments of the population caught up in these dynamics.
What he concluded resonated with me as I approach “retirement” after nearly five decades in traditional business. (I put “retirement” in quotes because I have no intention of retiring in the traditional sense of the word, meaning lazing about on permanent vacation.) I have a network marketing business that I will continue working on long after I end my traditional consulting career.
I can relate to one of the people Laura talked with in the course of his research. Staci Cahill says “The products I now offer has changed my life and that of others… and I find a lot of value in waking up and going to bed knowing that.”
It’s more than the money, although given the state of retirement savings it is still an important factor. One of my motivations for getting into this business originally was a healthy ongoing retirement income. What I find is that I get a lot more out of it than that.
- I spend time socializing with some great people.
- I enjoy helping people be successful starting a business.
- Running a business can be challenging and helps keep me mentally active.
- Over the years teaching and coaching people to help them develop has always felt good. I am able to leverage those skills to help my business partners and my team members improve.
- But a sense of significance is perhaps the overriding factor. In my traditional career I helped many large bureaucratic organizations become more efficient and effective. The work was mentally challenging; but I rarely had a strong sense that I was making a fundamental difference in the world. In my network marketing business I know that my products are making a difference in people’s lives. That is very rewarding.
From my personal perspective, the answer to the question posed by the title of this article is a definite “Yes!” Network marketing can be a very viable retirement strategy.
It involves effort. It is running a business – not taking a vacation. But if you choose a company well, the effort does not seem like work because you enjoy what your are doing. And if you do it well you can get paid handsomely for your efforts.
#entrepreneur #retirement #economy