How a 70-year-old unretired to start painting business as stock hedge – Business Insider

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On a Sunday in May, 70-year-old pastor Joe Mlaker presided over his last service. After nearly 40 years, he was retiring and moving to Florida with his wife.

But just two weeks later, he decided to start aninterior painting business.

He began taking on work in July and generated more than $7,000 in revenues andnearly $3,000in profit through the month of September, according to documents verified by Insider. With his $2,600 in start-up costs now out of the way, he says he expects to take home roughly $2,000 in monthly income from his new gig going forward.

While Mlaker, a self-described "Type A personality," initially started the business because he was restless and looking for "something to do," he says it's become a more important source of supplemental income for him in recent months as the stock market tanks. In late September, the S&P 500 reached a new low for the year, and signs are pointing to further pain in the months ahead.

"The money really becomes important, especially when I look at what's happened with my retirement accounts how quickly we've all lost 10% to 15% in the last year," Mlaker told Insider. His estimate of his losses might even be a bit conservative. Bloomberg estimated that as of June 30, the average 401k balance was 20% lower than the year prior.

Along with being a "hedge" against the markets, he hopes his business income will help him and his wife travel the way they envisioned during their retirement.

Early retirements have been on the rise in recent years due to rising wealth values, COVID concerns, and layoffs. But high inflation and a struggling stock market are now causing some retirees to consider re-entering the workforce. A June CNBC survey, for instance, found that 68% of workers that retired during the pandemic would consider coming back to work. If they do return in high numbers, it could help ease the ongoing labor shortage, and reduce wage pressures that are among the reasons the Fed is grinding the economy to a halt.

But while the rate of retired workers returning to the workforce has returned to pre-pandemic levels roughly 3% growth has stalled in recent months. It remains to be seen whether economic conditions will eventually nudge more to do so.

Serving four different churches across Michigan, Illinois, and Wisconsin during his time as a pastor, Mlaker "always had a lot of things on his plate." Upon moving to a 2,500-home in a gated community in the Naples area, he says he grew restless almost immediately.

"My whole life, I've always had something to do, an office to go to," he said. "Even during COVID, I would go to the church every day, I would tape a service. Coming down to Florida, I didn't have that routine."

After Mlaker noticed that there was a lot of paint work being done in his community, he spoke with a handyman friend, who told him he could "pick up any side job" if he wanted to. Since he'd run a small painting business for nearly three years in his 20s, it seemed like a natural fit.

He jumped at the opportunity, applying for an LLC, designing business cards, and buying a pickup truck. His start-up expenses included $250 for a Sherwin Williams open contractors account, $22 for a web domain, $145 for business liability insurance, $126 for a storage locker, and $117 for magnetic truck decals, per documents provided to Insider.

Once everything was sorted, he began posting about his business on the local networking service Nextdoor, as well as community Facebook groups.

"I said, "Hey, I'm new in the community. I'm retired. If you're looking for a small paint job, here you go," Mlaker recalls.

This helped him picked up a few jobs, and then it "became word of mouth" he says.

Mlaker tries to not work more than three days per week. The typical job takes four to five hours and generates about $275 in profit, while the biggest require three 8-hour days and bring in roughly $1,400 in profit equivalent to approximately $55 in profitper hour worked.

He charges customers roughly $1 per square foot of wall painted he says $1-2 is the typical rate which translates to roughly $350 for one typical room. He reduces the cost by 75% for a second coat of paint, which he says customers typically desire.

The business' ongoing costs include tape, plastic covering, roller covers, and paint tray covers, as well as new brushes after about every four jobs. He receives a 35-40% discount when he buys paint, one he says he passes along to his customers. Operating costs include gas, insurance, storage rental, and bank fees.

There has been plenty of demand for his business right in his neighborhood. In fact, Mlaker says he hasn't left his gated community once for a job, which "fits perfectly" for his lifestyle.

In terms of business competition, he says the major painting companies typically pursue bigger assignments like a whole home but there's less competition for painting just a bedroom for instance. Given he's just a one-man team and wants to limit his hours, these smaller jobs are exactly what he's looking for.

And a small job can lead to more work. He recalls earning $2,000 to paint half of a client's home, and then was called back to paint the other half. Another client had him paint a bedroom, and then he ended up doing their kitchen as well.

Mlaker picks the days he works and loves the flexibility his business provides. He recalls running out of paint on a job one morning, going to the paint store near the beach, relaxing at the beach for two hours, then heading back and finishing up his work.

While Mlaker believes others his age can have similar success, he acknowledges that he's blessed to be in strong physical shape something that makes his active work life easier. He's an avid road cyclist that rides "thousands of miles" per year and even says he still plays ice hockey.

"Being active is a part of my life," Mlaker said. The more I can engage in different activities, the better I actually do it all with them."

Mlaker worked with many people during his time as a pastor, but says he rarely had the opportunity to see the "end results," as life pushed them in different directions. But with painting, he can step back after a hard day's work and be proud of the finished product.

For people in his generation considering starting a business or going back to work, he advises asking oneself, "What do you like to do?, "What are some of your life skills that you can maybe turn into some income?" and "What fits your physical nature?"

Moving forward, Mlaker intends to continue working on his business only part-time but is considering taking on some additional work outside of his community. He lives approximately eight miles from the ocean and suffered wind damage and temporary loss of power and water during Hurricane Ian, though he was not in an evacuation zone.

In Fort Meyers, however, a few miles west, there is "major damage." As the area rebuilds, he expects there to be plenty of job opportunities if he chooses to pursue them.

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How a 70-year-old unretired to start painting business as stock hedge - Business Insider