For many who spent a lifetime working for other people, the retirement years opens up the opportunity to start their own business, usually expanding on a hobby or passion. Jonathan Pond advises anyone who is thinking of opening their own business to use caution. "The notion of turning a hobby into a vocation is more likely to be a failure than a success," he says, in part because of the length of time it takes for a business to make a profit.

Pond does offer the following advice to those who are thinking about starting their own business:

• Don't use your own money. Too many people wipe out their nest egg and have nothing to fall back on.
• Don't quit your day job. Start a hobby job as a part-time project to see how it goes.
• Don't delude yourself that you have the skills necessary to turn your hobby into a business. Passion is not a skill. It is important to understand your strengths and weaknesses.

"It's exciting to start your own business, but you have to go in with your eyes wide open," Pond says.