Changing careers later in life can be both exhilarating and daunting. I know this firsthand, as my career path has been a journey of reinvention spanning multiple industries and roles.
My professional journey began in hospitality, where I progressed from sommelier and chef to General Manager and Director of Food and Beverage at a 5 Diamond resort. My passion for wine then led me into the wine industry, where I held executive positions in national and international distribution management. These experiences honed my ability to connect with diverse individuals and manage complex, demanding tasks.
At 50, I made my most recent transition to become a financial advisor. This wealth of experience across various sectors has given me a unique perspective on midlife career changes.
Whether you’re pursuing a long-held passion, seeking a less stressful job, or looking for new challenges, a midlife career transition requires careful planning and strategic financial adjustments. Let’s explore seven essential moves to help you achieve a smooth and successful transition into your new professional chapter.
If Money Were Easy
1. Uncover Your True Motivations and Set Clear Career Goals
Before making significant decisions, reflect on why you want a career change. Are you seeking fulfillment that your current job lacks? Is financial gain your primary driver, or are you looking for a better work-life balance? Setting clear goals will guide your path forward and help you stay focused during challenging times.
For me, financial planning was incredibly empowering. Understanding my own financial standing gave me a sense of control and confidence that I wanted to share with others. I was drawn to this field because it allowed me to combine my diverse professional experiences with my desire to make a meaningful impact on people’s lives, helping them achieve financial security and peace of mind.
2. Assess Your Transferable Skills and Explore New Interests
Evaluate your skills, both transferable and specialized, and consider how they align with potential career paths. This is also an excellent time to explore interests you may not have pursued professionally. This might involve returning to school or obtaining certifications, so consider the time and cost implications of additional education.
I returned to UC Berkeley to pursue my certification as a Personal Financial Planner, recognizing the importance of formal education in this field. Through this journey, I learned that becoming a CERTIFIED FINANCIAL PLANNER™ is the gold standard in the financial industry, representing the highest level of competency and ethical practice.
3. Strengthen Your Financial Foundation for a Smooth Career Transition
Before making any drastic career changes, it’s crucial to get your financial house in order:
- Update Your Financial Plan: A career change can impact your income, retirement savings, and benefits. Revisiting your financial plan with a professional can help you understand these impacts and adjust your savings and investment strategies accordingly.
- Create a Transition Budget: Your income may decrease temporarily during your career transition. Prepare for this by creating a budget that cuts non-essential expenses and extends your emergency fund to cover at least 6-12 months of living expenses.
- Explore Healthcare Options: If you’re leaving a job with employer-sponsored health benefits, you’ll need to plan for alternative coverage. This could mean switching to a spouse’s plan, exploring the Health Insurance Marketplace, or considering health-sharing plans as a stopgap.
- Evaluate Employee Perks: Consider the value of perks you receive as an employee, such as a matching 401(k), health benefits, phone and vehicle reimbursements, etc. If you decide to work for yourself, you’ll need to factor in additional expenses, including self-employment taxes and the cost of benefits previously provided by your employer.
- Prepare for Tax Changes: Keep in mind that working for yourself may result in additional tax obligations. Research and plan for self-employment taxes, estimated tax payments, and any other tax implications of your career change.
4. Start Your Career Transition While Still Employed
Don’t wait until you’ve completely left your current job to start exploring new career options. Starting early will give you a head start and alleviate some of the stress associated with transitioning from a job you’re looking to leave.
While working as an executive, I attended one class every semester and nearly completed my education requirements for becoming a CFP® before leaving my career.
5. Build Your Network and Gain Industry Experience
- Conduct Thorough Industry Research: Understand market trends, key players, job stability, and growth opportunities in your new field. This information will be crucial for making informed decisions.
- Expand Your Professional Network: Attend industry meetups, conferences, and seminars. Engage on professional social media platforms like LinkedIn to build your network in your new field.
- Gain Relevant Experience: Consider part-time positions, internships, or volunteer opportunities in your new field to build experience and credibility. This can be a vital step in gaining employment in a new industry.
- Update Your Digital Presence: Tailor your resume to highlight the skills and experiences most relevant to your new career path. Also, update your LinkedIn profile and any other relevant social media to reflect your career change and new professional identity.
- Prepare for Interviews: Be ready to discuss your career change convincingly in interviews. Focus on your enthusiasm for the new field, your transferable skills, and your dedication to lifelong learning.
6. Stay Flexible and Patient
Career transitions don’t happen overnight, especially later in life when the stakes can feel particularly high. Stay flexible and open to opportunities that may lead in unexpected directions. Patience will be your greatest ally as you navigate this exciting phase.
Though I have been in the financial industry now for two years, I know that I have a long road ahead before I reach the level of confidence that I once had in my previous career. Be sure to reflect on your progress as you settle into your new career.
7. Seek Professional Financial Guidance for Your Career Transition
Finally, consulting with a financial advisor can provide personalized advice tailored to your specific financial situation and career goals. At Abacus Wealth Partners, we specialize in helping individuals manage their finances through major life changes, including career transitions. We can help ensure that your move not only meets your career aspirations but also aligns with your long-term financial health.
Embarking on a career change later in life is a courageous step. With the right planning, financial strategy, and mindset, you can make this transition a fulfilling and successful phase of your life.
Disclosure:
This material is not intended to serve as personalized tax, legal, and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Abacus Wealth Partners, LLC is not an accounting or legal firm. Please consult with your tax and/or legal professional regarding your specific tax and/or legal situation when determining if any of the mentioned strategies are right for you
