In his book “Drive,” Daniel Pink introduces a concept that resonates deeply with many individuals approaching or transitioning out of their primary careers: encore careers. This term refers to a new professional chapter after the conclusion of one’s primary career. For those seeking fulfillment, purpose, or a change of pace in their later years, an encore career may be the perfect solution.
What Is An Encore Career?
An encore career is a second act—a career pursued after retiring or stepping away from one’s primary profession. Importantly, it’s not just a job change within the same field. For example, a doctor moving to a new practice or a banker switching banks would not qualify. Instead, an encore career involves a significant shift, such as an attorney transitioning to running a food shelter, a finance executive dedicating their time to the SPCA, or a corporate executive pursuing a lifelong passion for music by working at a radio station.
The defining feature of an encore career is its novelty and challenge, often motivated by the desire to contribute to a cause, explore a passion, or embrace a completely new environment.
Why Consider An Encore Career?
There are two primary reasons individuals pursue encore careers:
1. Burnout And The Need For Change
After decades in a demanding profession, burnout can set in. Many find they’re not financially ready to retire completely but can no longer sustain their current work pace or environment. In these cases, an encore career offers a way to earn an income while transitioning into a more fulfilling or balanced role.
2. A Desire To Stay Engaged
Some individuals have plenty of financial resources to retire but feel they still have untapped potential. They may want to channel their experience, skills, or passion into a new endeavor. This could mean helping a nonprofit, starting a business, or pursuing a field they’ve always been curious about.
An Example Of An Encore Career In Action
One client left a long corporate career and decided to return to school to pursue a Ph.D.—a lifelong dream. Now, they are immersed in the academic world, finding purpose and satisfaction in this entirely new chapter.
How To Approach An Encore Career
If the idea of an encore career resonates with you, there are several factors to consider when planning your next move. While your priorities may vary depending on your goals, this checklist provides a comprehensive framework:
1. Ensure Financial Stability
Select a role that covers your expenses without requiring you to dip into savings unnecessarily.
2. Prioritize Work-Life Balance
Look for opportunities that provide more flexibility and allow you to enjoy the non-working aspects of life.
3. Align With Your Interests
Choose a field or role that has always intrigued you and offers a chance to learn and grow.
4. Pursue Your Passion
Consider positions that align with causes or organizations you care deeply about, such as charities, religious groups, or startups.
5. Embrace Flexibility
Seek roles that accommodate your lifestyle, allowing time for travel or family visits without rigid schedules.
6. Opt For Energizing Work
An encore career should be fulfilling, leaving you more energized at the end of the week, not drained.
7. Challenge Yourself Mentally
Staying mentally engaged is crucial for long-term health and happiness. Choose work that stimulates and excites you rather than monotonous or repetitive tasks.
The Case For Encore Careers
As people live longer, healthier lives, the traditional retirement model is evolving. Retirements now span decades, often 20, 30, or even 40 years. Encore careers can play a vital role in supporting this extended phase of life, both mentally and financially. They provide a sense of purpose, help maintain a stimulating lifestyle, and can even prevent the boredom or stagnation that sometimes accompanies traditional retirement.
While an encore career may not be the right fit for everyone, it’s worth exploring as a way to make the most of this exciting chapter of life.
Living Your Best Life
As the paradigm shifts, the question becomes: how do we support these longer lifespans while maximizing our potential for happiness, purpose, and financial security? For many, an encore career is a step in the right direction.
Stay wealthy, healthy, and happy.
Financial planning and Investment advisory services offered through Diversified, LLC.
Diversified is a registered investment adviser, and the registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the SEC.
A copy of Diversified’s current written disclosure brochure which discusses, among other things, the firm’s business practices, services and fees, is available through the SEC’s website at: www.adviserinfo.sec.gov.
Diversified, LLC does not provide tax advice and should not be relied upon for purposes of filing taxes, estimating tax liabilities or avoiding any tax or penalty imposed by law. The information provided by Diversified, LLC should not be a substitute for consulting a qualified tax advisor, accountant, or other professional concerning the application of tax law or an individual tax situation.
Nothing provided on this site constitutes tax advice. Individuals should seek the advice of their own tax advisor for specific information regarding tax consequences of investments. Investments in securities entail risk and are not suitable for all investors. This site is not a recommendation nor an offer to sell (or solicitation of an offer to buy) securities in the United States or in any other jurisdiction.
Read the full article here
