Monday, February 19, 2018

4 Important Things to Consider Before Making a Midlife Career Change

When you eventually reach the age of 50, two things can easily happen to your career: You get the itch to try your hand at a different type of work that you’ve always dreamed of, or you find yourself being nudged (or forced) into a new line of work by an employer looking for new blood.

Either way, changing careers in midlife is exciting but also frightening. I went through it more than 10 years ago, and luckily it worked out well for me—but it wasn’t easy. Here are a few things I learned along the way that may help you decide whether to pull the trigger and change careers at midlife, or to stick with what you’ve got. Either option can be the right one; it depends on your situation.

1. Make sure you have more than just “passion”

You’ll hear it said that it takes passion to succeed in a career. This is only partly true; it also takes talent and hard work. Before you dive into a new career because you’re passionate about it, consider your degree of talent dispassionately. I love to sing, but if you ever hear me “execute” a song, you’ll know there’s no money to be made by me in that field!

Also, consider your willingness and ability to work hard. Starting a new career takes the energy of a 20-something. Do you have it? Just as important, do you want to work that hard? Many 50-somethings have a lot of stuff going on in their lives—family, travel, hobbies. You may have to give up some (or even a lot) of your quality time to do the drudge work of setting up a new business or learning a new set of skills.

Bottom line on passion: A successful career change requires a sober, practical business assessment as much as it does a heart full of passion.

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2. Consider your financial position with great care

If you can change careers and start doing new work that you love, while still making the same or higher salary, well … you probably don’t need to read this article. Usually, however, a career change involves taking a pay cut and losing benefits. Can you afford that? Do you want the deal with the stress of holding to a tight budget for an unknown period of time?

As you get older, health insurance gets to be a bigger worry than salary. Insurance is expensive, and if you’re going from a company plan to self-insurance, get ready to take on the red tape and hassles of processing claims. It’s no fun.

In addition, if you have dependents, you’ve got to consider how an abrupt change in finances could affect them, both materially and emotionally. This can be a major consideration—maybe the major consideration—if your finances put your home, your family’s healthcare coverage, or your children’s college tuition in jeopardy.

Many people grossly underestimate the cost of retirement; what you earn or don’t earn from the age of 50 to 65 is going to have a major impact on what you can afford to do in your golden years. If you’ve built a war chest of cash and ample liquid assets to help smooth out your finances during your career change, you’re in a great position. On the other hand, if you have to tap into your 401(k), take on new debt, or sell non-liquid assets to finance the career change, you may be following today’s dream into tomorrow’s nightmare.

Bottom line on finances: Go over your financial strategy with a trusted, competent, professional financial advisor well before pulling the trigger.  

3. Have a contingency plan

Ramping up a new career takes time, but how much time is anybody’s guess. Even with a carefully thought-out business plan or assurances from a new employer, anything can happen. If things don’t work out, can you get back on your original career track? If you’re going to start a business, do you think you could sell it if you fall short of your goals?

Changing careers is bound to be stressful in one way or another. However, trying to escape a career change five years later, with no plan, will be a hundred times more stressful.

Bottom line on contingency planning: A well-thought-out plan will help you succeed in your career change by reducing uncertainty.

4. Examine your motivation

As we age, the quality and meaningfulness of our work becomes more important. If you are truly stuck in a job you dislike, this will weigh heavily on you mentally, emotionally, and possibly even physically. Not good! This is a tough situation to be in, because even if you’re not in a perfect position financially to change careers, you may be better off psychologically (and be a better spouse or parent) by taking the financial hit and getting into work you love.

Sometimes, though, the itch to change careers is a result of ­­the “grass is greener” syndrome. Perhaps decades of office politics have worn you down, but keep in mind that office politics will likely crop up in every company. And while escaping office politics to become an entrepreneur may seem tempting, understand that as an entrepreneur you will face mentally challenging issues of other kinds. Every career has its negatives.

Bottom line on motivation: Change when you’ve found something you love, not when you’re experiencing something you want to escape.

50 is a great time to go for it

Even though I’ve brought up a lot of potential negatives, I only do so in the hope of challenging you to consider all the variables. But to end on a high note, I believe that 50-something is a terrific time to take the plunge into a new career. You’ve still got plenty of energy, and the wisdom and experience you’ve acquired make you a valuable asset; in fact, you may be pleasantly surprised by how much value you have.

You also have the emotional maturity to weather storms without letting them knock you down, and also to celebrate victories without sending your head into the clouds. These are all big assets, and ones that don’t appear on balance sheets.

Bottom line: Don’t jump into a career change impulsively—but, more important, don’t sell yourself short.

RELATED: Lessons in Career Disruption—5 Tips for Moving From a Corporate Job to a Startup

The post 4 Important Things to Consider Before Making a Midlife Career Change appeared first on AllBusiness.com

The post 4 Important Things to Consider Before Making a Midlife Career Change appeared first on AllBusiness.com. Click for more information about Brad Shorr.



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