Deep feeler and the hero at the submarine door.

"The third avenue to financial independence is not so much about retirement--it's about financial independence during your career/working life as well as retirement. The ideal retirement scenario for the self-employed is simply a reduction in the work you don't much like and a continuation of the work you enjoy until the end of your life.


So what does all this say about self-employment? I think we can draw a few conclusions:

1. Establishing a profession is one tried-and-true way to be self-employed. Obtaining the diploma and license does not guarantee an income, of course, as competition can be plentiful in certain professions and regions.

2. Owning rental properties is a path to financial independence that works for almost 3 million people/households.

3. Owning the rights to creative content or patents that generate royalties is a ticket to financial independence for 1.25 million people.

4. There are many other sole proprietorships (about 3 million based on the IRS data) that manage to net $50,000 or more annually. Presumably some qualify as Mobile Creatives who cobble together several income streams to generate enough to live independently.

5. Over 10 million people are earning meaningful sums from small (less than $50K/yr) enterprises, rentals and royalties. These don't generate $50,000 a year, but they still make an important contribution to financial independence, income and capital/wealth.

6. Businesses that eventually earn $50,000 or more typically start small, so many of the people currently earning less than $10K/year could over time increase their income or add another modest income stream.

Financial independence via self-employment is still possible, and there are a number of pathways to that goal. The path I consider the most flexible and thus the most attainable by non-professionals is the Mobile Creative idea of generating multiple income streams, preferably from sources that are not all tied to the same industry so that a downturn in one sector won't wipe out the entire household income.
The Mobile Creative credo is simple: trust your network, not the corporation or the state. "

Submitted by Charles Hugh-Smith of OfTwoMinds blog,