It’s a great time to take stock of your career.
It was once unthinkable to stray from your primary career before you retired, but that’s no longer the case. A career change in your 40s is a great way to redeploy all the business and interpersonal skills you’ve accumulated over the previous decades. The trick is to find a career that is both personally satisfying and financially rewarding.
Begin by taking stock. Think about what you like and don’t like about your current career. Perhaps you want more control over your time and work, or maybe even nurture an entrepreneurial streak. Do you like working on your own or in an organizational setting? Are you willing to take some time off for additional schooling? Let your imagination roam and write down your thoughts.
Consider a career in a high-demand field. The most prominent career themes in today’s economy include healthcare (due to the aging population), computer science (spurred on by developments in artificial intelligence), and finance (investment, personal finance, insurance, taxes, and so forth). Some of these will require training or perhaps a degree, but in the age of the internet, you may not need to leave home to attend classes.
Career moves can proceed in steps. For example, if you want to get into healthcare, you can train as a patient care technician, emergency responder, or even a veterinary technician. Whichever road you choose to take, be clear-sighted about how some extra work and costs now can pay off big in the years ahead, both emotionally and financially.
Self-employment was never more appealing. The 2018 tax changes may be rewarding for the self-employed, who in some cases qualify for a 20% deduction of business expenses on their federal taxes. On top of that, there are meaningful tax breaks for Solo 401(k) plans and health and long-term-care insurance. Therefore, even if your income doesn’t increase when you change your career, your after-tax earnings may increase.*
*Qualifying for self-employed deductions and tax credits can be complicated. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
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